Mandurah house prices jump $260,000 in last decade

Major infrastructure development such as the extension of the southern Freeway and opening of the Perth to Mandurah rail line has resulted in a major increase in property prices across the Mandurah area over the last decade.
REIWA figures for the June 2010 quarter show that the median price of an established home in the Mandurah/Murray area increased by $260,000 or over 200% during the last ten years.
Even though the median house price in Mandurah has increased from $125,000 to $385,000 over this ten year period, property prices in Mandurah are still competitive relative to the rest of the Perth metropolitan area.
Over the past two years, property values in Mandurah have undergone a market correction and as a result the median price of a home in Mandurah is now around $100,000 lower compared to median house prices for the Perth metropolitan area.
As a result, this prime lifestyle area currently represents excellent value for money for property buyers wanting to purchase an established home or build a new house.
In a number of quality estates in the Mandurah area, astute first home buyers, for example, can purchase near new homes for under $400,000.
The top end of the Mandurah market experienced the largest overall market correction especially for properties priced above $1 million. The Mandurah foreshore and canal areas now have a wide selection of quality homes for sale which represent excellent value for money.
Historically, Professionals Real Estate Group has found that the top end of the Mandurah property market is disciplined by the strength of the premium real estate market in Perth and while this has improved over recent months, it will take more time for this recovery to impact on Mandurah.
During the coming year, it is expected that property buyers will appreciate that real estate in Mandurah is relatively under-valued and the volume of sales will increase, resulting in upward pressure on prices.
Looking to the longer term, the prospects for the Mandurah real estate market remain positive because of the growing focus on lifestyle factors by property buyers.
This focus on lifestyle is a key reason for Mandurah;s surging population which will result in a rising demand for real estate over the long term. It is projected, for example, that over the next decade, the population of Mandurah will rise by over 25,000 persons to 95,584 people.
One of the biggest growth areas for population will be Dawesville with the population in this area expected to nearly double to more than 10,000 people.
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