The upcoming infrastructure upgrades in Perth, such as the METRONET project, could potentially boost its housing and investment markets. However, property investors are still encouraged to carefully study the market to avoid possible pitfalls, according to the latest forecast by Momentum Wealth.

Property investors need to consider the potential impact of infrastructure improvements in their prospective suburbs, particularly in terms of capital growth, said Shaun Strickland, research advisor at Momentum Wealth.

"Infrastructure upgrades such as new transport links can provide an important catalyst for capital growth due to the increased accessibility and amenity they bring to a suburb, both of which can help to drive higher levels of demand from buyers and renters," he said.

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One of the biggest infrastructure upgrades to watch out for is the METRONET project, which will develop up to 18 new stations across Perth's metropolitan region.

The METRONET project could potentially bring the spotlight to some of the overlooked suburbs like Forrestfield. The first stage of the project includes the development of three new stations under the $1.86bn Forrestfield-Airport Link.

"Investors who enter these suburbs at the right time have the opportunity to leverage the relative affordability of these areas before buyer competition starts to place upwards pressure on property values," Strickland said.

However, investors need to be careful about the property types that they get into. Strickland said the new zonings arising from the project would likely impact future supply, which could, in turn, influence the value of properties.

Bridesmaid suburbs — key to growth?

Bridesmaid suburbs, or those neighbourhoods surrounding the most expensive suburbs, give investors affordable options and allow them to leverage future growth opportunities, Strickland said.

"What we often find is that buyers who are missing out on opportunities in aspirational suburbs, or equally being priced out of these markets, will start to look towards affordable alternatives in surrounding areas, many of which offer similar demand drivers and high-quality investment opportunities, just at a lower price point," he said.

When Como and South Perth recorded price increases during the last market upturn, surrounding areas like Manning also witnessed a spike in demand.

However, not all properties will turn into good investments, Strickland said.

"Buyers need to ensure they are still doing their research and steering clear of poor-performing pockets or red flags that could hinder their portfolio's long-term growth," he said.

Supply to dictate prices?

Overall, Perth is expected to witness tighter supply levels as demand further accelerates this year. This trend will enable investors to see which areas will continue to benefit from the improving market conditions.

"Buyers searching for suburbs with strong growth prospects should look towards areas that are tightly held, where there are few property transactions occurring due to limited supply coming on stream," Strickland said.

Suburbs near school zones are an example. These suburbs typically witness high levels of demand from owner-occupier markets and offer great stability during downturns.

Bateman and Carine are two of these suburbs. They managed to buck the overall downturn in Perth, recording respective price growths of 2.4% and 5.3%. This was amid the 2.9% decline in the wider market.