Suburbs that were previously snubbed by buyers are the investment hot spots of 2016, here according to property experts.

Perth is expected to remain a buyer’s market for the next six months, check with industry figures predicting a pick-up in established sales activity from July.

But investment experts warn buyers need to be selective to see above-average capital growth.

For top investment picks, the experts predict “ugly duckling” suburbs with rejuvenation potential and an improved reputation will offer better investment returns than their trendier neighbours.

QWest Paterson chairman Warwick Hemsley said buyers should embrace “unfashionable suburbs” that have strong surrounding infrastructure, such as schools, childcare, transport and retail.

He said a good strategy would be to seek out affordable suburbs with higher- end neighbours that had recently experienced price growth. Ashfield (8km northeast of Perth), Midland (16km east of Perth), and Belmont (7km east of Perth), were among his top investment picks for proximity to new infrastructure and existing affordability.

INFRASTRUCTURE IMPROVES: Elizabeth Quay, Cockburn Central redevelopment and the new Perth Stadium at Burswood will improve not just immediate localities, but surrounding areas, according to Gavin Hegney.

South Perth ($1.2m median) could receive a boost from buyers looking to “ferry over to Elizabeth Quay”.

Doubleview, Wembley Downs and Trigg will be boosted by those wanting to be close to the Scarborough redevelopment.

REZONING: Suburbs that are awaiting rezoning approval to allow higher density development such as Wanneroo ($467,500 median) will see a boost as larger blocks become subdividable.

TRANSPORT: With congestion on the rise affordable suburbs less than 10 kilometres from the CBD, such as Belmont ($505,000 median) are expected to be popular in 2016.


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