The million dollar Perth suburbs savvy buyers are getting into now

Perth's million dollar property market is in the midst of recovery, with eager buyers taking advantage of low interest rates and economic confidence to make the leap into suburbs once out of their reach.

"We are at the bottom of the market - buyers are smart and seem to be using this as their entry point into the 'million dollar market'," Realmark Coastal director Sean Hughes said.

"We have noticed higher numbers through home opens, with buyers prepped and ready to buy now.

"Buyers have been very willing to write offers and are prepared to negotiate; some properties we are seeing six-plus offers being written. We are at the bottom of the market - buyers are smart and seem to be using this as their entry point into the 'million-dollar market'."

Activity was heating up along Perth's coastal strip, through to Scarborough and to Stirling, Mr Hughes said.

"Buyers are smart and taking advantage of the market to get into these suburbs now," he said.

Property analyst and valuer Gavin Hegney said many of these "smart buyers" were mostly purchasing entry-level homes - ones near land value.

"These areas are mostly 12 months past the bottom of the cycle and are already up eight to 20 per cent," he said.

Peard Real Estate chief executive Peter Peard said million dollar sales in prime coastal suburbs, including Hillarys and Trigg, had been due to many buyers making the leap to upgrade from inland suburbs.

"In particular, we have found a very strong demand for prime oceanfront properties over the past six months in Perth and stock levels for this class of property are now falling quite sharply," he said.

"As a result of this trend, we should expect the prices of oceanfront properties to lead the market recovery in prices rises during 2018."

Acton chief executive Travis Coleman said stock levels were running 70 per cent below normal, with many buyers believing the market had bottomed out.

"This is prompting buyers to make decisions and take that leap," he said.

Mr Coleman said a shortage of stock had been trending for a few months now, in particular in suburbs such as Nedlands, Floreat, Cottesloe and Claremont.

"The suburbs that are in excellent school zones are performing better than ever and the end of the calendar year always brings a boost in activity," he said.

LJ Hooker Applecross principal Nick Wallace said even in the sub-$1 million market, buyers were making use of present conditions to upgrade.

"I worked with a couple that recently sold up in Huntingdale for a property priced twice as much in Applecross," he said.

"Turn-outs at our home opens have risen dramatically and the economic forecast is looking more positive in WA. We've noticed the days on market have tightened as well."

Mr Peard warned buyers considering snapping up a million dollar property to act fast, because he expected the window of opportunity to last about six months.

"Our company is expecting that the supply of million dollar properties will start to dwindle sharply during the second half of 2018 as the property markets moves into full recovery," he said.

This story The million dollar Perth suburbs savvy buyers are getting into now first appeared on The Sydney Morning Herald.