PROPERTY values in the coastal town of Mandurah are skyrocketing – with some block and house prices doubling in value in the past six months.
David Green, principal agent at Century 21 Mandurah, said prices had steadily increased over the past few years, but had “gone through the roof” in the past six months.
He said Mandurah’s real-estate boom was driven by interstate and overseas investor interest, the resource sector boom, easy access to Perth and an attractive lifestyle.
In the past 15 years, Mandurah has grown from a population of 13,000 to a city of more than 60,000.
“The resource sector boom in WA means we get plenty of cashed-up, fly-in/fly-out workers who are buying in Mandurah so they can spend their time off in a relaxed lifestyle-focused area,” Mr Green said.
“As well as the Perth and baby boomer market, we get huge interest from interstate and overseas.”
The shortage of land in the region was also driving prices up.
“Every time there is a land release, people camp out for days and it has even got to the stage that people are pre-empting land-release announcements and camping out,” he said. “There is simply more demand for blocks than there are blocks.”
Mr Green said a 600sq m block bought six months ago for $135,000 in the Halls Head development of Seascapes sold three months later for $198,000. The buyer put the block on the market six weeks later and it fetched a staggering $270,000.
“These sorts of stories are pretty common in the Mandurah region at the moment,” Mr Green said.
“Blocks that were sold for $85,000 two years ago now sell for $230,000 and you would be lucky to find a home anywhere under $400,000.”
The recent sale of a $3.6 million canal home set a new record for Mandurah real estate. Mr Green said the Hong Kong buyer represented a new breed of international investors who recognised the seaside town’s potential.
“I took the man out on the canal in my boat and he picked out which home he wanted and negotiated a sale with the owners,” he said.
“The owners had no intention of selling, but he paid well above what would have been the asking price because he was keen to secure a place. You couldn’t get a canal home for under $1.5 million now and they rarely come on to the market.”
Elders Mandurah agent Renee Hardman said that despite the soaring values, Mandurah was still an excellent place to buy and invest.
“It is really good value for money and the canal and beachfront properties, especially, have been undervalued for a very long time,” she said
Source: Sunday Times Australia