Buying a Perth investment property can be a great idea.
After all, the city is currently experiencing low vacancy rates, strong returns, and record capital growth. But not all suburbs and property types were created equal. With that in mind, we look at Perth’s best suburbs for investors, whether you’re looking for capital growth, income, or a combination of the two.
Best Perth Suburbs to Buy in for Yield
Perth’s yields are the best of any major city in the country, with a citywide gross median yield of 4.3%, including 4.2% for houses and 5.8% for apartments. That means, for instance, if you were to buy a $600,000 Perth house, you could expect to receive rental income of $25,200. If you were to buy a Perth apartment for $600,000, you could expect rental income of $34,800.
However, some suburbs outperform even these impressive averages as the tables below show.
Best Perth Suburbs for Yield: Houses
If you’re looking to buy a house, some of the best suburbs for yield are set out below.
| Suburb | Median Rent | Median Sales Price | Yield |
|---|---|---|---|
| Brookdale | $550 | $485,000 | 6.1% |
| Langford | $580 | $540,500 | 6.1% |
| Balga | $550 | $510,000 | 6.1% |
| Medina | $480 | $432,000 | 6.0% |
| Greenfields | $530 | $525,000 | 6.0% |
| Ellenbrook | $630 | $596,500 | 6.0% |
| Armadale | $520 | $475,000 | 5.9% |
| Maddington | $550 | $560,000 | 5.8% |
Best Suburbs for Yield: Apartments
If you’re looking to buy an apartment, some of the best suburbs for yield are set out below.
| Suburb | Median Rent | Median Sales Price | Yield |
|---|---|---|---|
| Orelia | $380 | $230,000 | 9.1% |
| Glendalough | $530 | $347,000 | 7.7% |
| Balga | $510 | $376,000 | 7.4% |
| Wembley | $475 | $340,000 | 7.4% |
| Midland | $480 | $370,000 | 7.2% |
| Armadale | $495 | $375,000 | 7.1% |
| Gosnells | $490 | $400,000 | 6.9% |
| Cannington | $550 | $409,000 | 6.9% |
Best Perth Suburbs for Capital Growth
Over the past 12 months, Perth’s median house price has lifted 24.7%, and the median apartment value has risen 24.5%. We believe with a strong economy, growing population, and relative affordability (especially when compared with the Eastern States) there is plenty of room for growth left.
In fact, PropTrack believes Perth prices should rise by as much as 11% again over FY2025. We think that’s conservative and that prices may rise by even more.
With that in mind, here are the best performing suburbs for capital growth.
Best Perth Suburbs for Capital Growth: Houses
Over the past 12 months, Perth’s median house price has lifted 24.7%, and the median apartment value has risen 24.5%. We believe with a strong economy, growing population and relative affordability (especially when compared with the Eastern States) there is plenty of room for growth left.
In fact, PropTrack believes Perth prices should rise by as much as 11% again over FY2025. We think that’s conservative and that prices may rise by even more.
With that in mind, here are the best performing suburbs for capital growth.
Best Perth suburbs for capital growth: houses
Here are some of the Perth suburbs that have far outperformed even the impressive citywide average.
| Suburb | Median Sales Price July 2024 | Median Sales Price July 2023 | Capital Growth |
|---|---|---|---|
| Armadale | $475,000 | $342,500 | 38.7% |
| Seville Grove | $575,000 | $426,000 | 35.0% |
| Mount Richon | $681,500 | $518,000 | 31.6% |
| Rockingham | $630,000 | $490,000 | 28.6% |
| Balga | $510,000 | $397,000 | 28.5% |
| Claremont | $2,350,000 | $1,850,000 | 27.0% |
Best Perth suburbs for capital growth: apartments
| Suburb | Median Sales Price July 2024 | Median Sales Price July 2023 | Capital Growth |
|---|---|---|---|
| Shoalwater | $325,000 | $227,500 | 42.9% |
| Safety Bay | $377,500 | $271,250 | 39.2% |
| Rockingham | $410,000 | $315,000 | 30.2% |
| Armadale | $290,000 | $342,500 | 29.3% |
| Canning Vale | $495,000 | $400,000 | 23.8% |
What the data tells us about investing in Perth
There can be a real difference between investing for capital growth and investing for income. In fact, Armadale is the only suburb that makes our list of best performers for both capital growth and yield (and interestingly also makes the sublists for both apartments and houses).
One trend that’s really apparent is the steep rise in apartment values in coastal areas south of Perth – largely the result of the area’s growing popularity with downsizers. Another is the fact that when it comes to yield, apartments tend to outperform houses.
Another trend that sets Perth apart from any other city in Australia is that growth in apartment and house values is almost identical (24.7% to 24.5%). In most parts of the country house prices are growing much more quickly. We put this partly down to Perth having the lowest ratio of apartments to houses or any major city – meaning the scarcity of apartments tends to keep prices high.
As an investor, you generally need to decide, which matters to you most. But also look for balance between the two. After all, strong income can offset a lack of capital growth, and the reverse is true also.
Want more?
Are you looking to invest in Perth real estate, rent out your Perth property or find your next Perth rental home? We can help. Get in touch with our specialist Perth rental team today.
