Luxury homes in Perth's northern coastal suburbs are being slashed by up to $1.5 million.
Peter Peard, of Peard Real Estate, said his agency was selling homes well below replacement cost, offering prime pickings for those seeking a luxury pad.
"In some suburbs a number of higher priced properties can be purchased for up to $1.5 million below replacement value," he said.
"Peard has found that the top end of the coastal market has been hit hard by rising interest rates and the uncertainty of the proposed Federal Government mining tax.
"Slower migration rates have also impacted the top end of the coastal property market.
"For astute buyers, the best value for money are properties above $2 million in the area from Trigg to Mindarie."
Mr Peard said executive homes being sold below replacement cost offered great value, given the predicted rise in building costs in the next two years.
"With building costs expected to rise strongly during the next two years due to the resources boom, these higher priced homes offer excellent value," he said.
"Once the market rebounds, these higher priced properties are primed for the greatest capital growth.
"Properties along this stretch of coast have delivered property owners hight rates of capital growth over the long term. In Hillarys and Sorrento, the median price of a home on average has increased by more than 10 per cent on average annually over the last decade.
"Property buyers should now take advantage of a short-term lull in the northern coastal property market to achieve long-term gains."