Perth’s property market showed impressive resilience during the pandemic, even experiencing fast-selling rates in the past 15 years. A Perth property investment is tempting to potential investors because of low-interest rates, low rental vacancy rates, and growing rental yields.
Choosing a Property Investment in Perth
Properties in Perth city are in high demand because of its lovely coastal location, laid-back lifestyle, and reasonable housing prices.
If you are starting your investment journey, check this list of the best suburbs in Perth to help you decide on your property investment.
Willagee
Willagee is a Perth, Western Australia suburb located 15 kilometres south-southwest of the Perth central business area.
Willagee’s notable school district, access to the interstate, and public transport connections provide residents with significant convenience.
This suburb’s accessibility to Fremantle and its competitive median price of $530,000 made it an appealing prospect for buyers.
In addition to its median rental yield of 3.73%, investors should watch out for this suburb’s future growth.
Fremantle
Fremantle will always have relevance in the Perth property market.
Fremantle has had a compound growth rate of 3.7% for houses and 1.1% for units over the previous five years.
In a strong demand housing market, homes’ rents are roughly $645 per week with annual rental returns of 3.5% and rental accommodation rates of approximately $450 per week.
South Perth
South Perth’s breathtaking location and convenience are significant advantages. The location is wrapped in Swan River and is only four kilometres from the CBD.
An increasing number of apartments in South Perth are attracting professionals and students who want to live a low-maintenance lifestyle.
The $1,247,500 median price is driven by stunning views from many vantage points, always drawing high-quality buyers and tenants. The average rental return in South Perth is 2.47%.
Forrestfield
Forrestfield is a suburb in East Perth which is quickly becoming a hotspot for families. With the creation of three new rail stations under the Forrestfield-Airport Link, Forrestfield provides exceptional convenience with a direct transit link between Perth’s airport and the CBD.
Property investment in Forrestfield is appealing with its median property price of $380,000. This place is appealing to investors with its average rental returns of 4.99%.
Buyers have the opportunity to use available grants and the area’s affordability before buyer competition drives up property prices.
Bedford
With a median property price of $633,000 and a median rental return of around 3.32%, Bedford is a promising suburb that offers an appealing prospect for buyers.
Bedford’s close vicinity to schools and shopping centres and its proximity to Perth’s CBD assure a strong growth potential in the medium to long term.
Rockingham
Rockingham, located south of Perth, has become a popular destination for individuals seeking a more relaxed way of life.
According to REA, the coastal town is made up of elderly singles and young couples.
Because of its closeness to Perth, Rockingham has become one of WA’s fastest-growing residential suburbs. The median house price in Rockingham is $430,000, while the median apartment price is $315,000.
It provides investors with a high rental yield between 4.6% to 5.9%.
Subiaco
‘Subi’ is a famous property market located in West Perth. It has one of Perth’s highest median property values and is mainly populated by young professionals and independent youth.
Despite its high price, it provides a good rental return and a diverse mix of upscale shops and restaurants. It is also connected to great public transportation and has consistent, lush roads lined with gorgeous ancient houses.
Median house prices in Subiaco are at $1,420,000, with rental returns at 2.6%. The median apartment price is $550,000, with a rental return rate of 4.5%.
Wellard
Originally rural, the area has grown to contain various residential properties, such as traditional house sites and urban-style flats.
Wellard’s sales volume increased by 80% in 2021, putting the southern suburb at the forefront of forecasts for a robust property price rise this year.
REIWA has named Wellard one of the top ten Perth suburbs for a likely price rise in 2022. The suburb has grown by 4% in the last year, with a median price of $415,000.
House rent in Wellard is roughly $420 per week with an annual rental return of 5.3 %, while apartments rent for around $350 per week with a rental yield of 6.9%.
Madeley
REIWA has named Madeley one of Perth’s suburbs with the potential to flourish in price growth this year. This was after it recorded a 75% increase in sales volumes in 2021.
The suburb has seen a 6% price growth in the past year and now has a median property value of $615,000.
Madeley might be a profitable proposition for property investors, with house rent of $500 per week and an annual rental yield of 4.4%.
On the other hand, unit rent is around $450 a week, with a rental yield of 5.9%.
The Future of Perth Property Market
The property growth in the mentioned suburbs is foreseen to grow in the coming years. While there are unknowns for Perth real estate, the most evident factor is the continued impact of the pandemic on state boundaries.
If you are seeking advice for your investment journey, contact an investment property strategist.
