Best Suburbs to Invest in Perth
As a property investor, you likely find Perth’s competitive housing market and annual rental price growth attractive, and rightly so.
Perth has consistently ranked as one of the most liveable cities in Australia.
But with so many Perth suburbs to choose from, it can be difficult to know where to start your search.
In this helpful guide, we’ll explore some of the best suburbs to invest in Perth.
Perth Property Market Overview 2024
By understanding how the Perth market has been performing, you can get a solid idea about its investment potential.
When it comes to the housing cycle, Perth properties are at a record high, with values increasing by 23.6% over the past year (until June of 2024).
While annual growth in Australia has slowed to 8.2% nationally, the data for each of the capital cities tells a different story.
Perth is at the national forefront with an annual change in rental yield of 13.2%.
This gives you an idea of how much Perth property investors are earning (after subtracting their properties’ overall costs).
When looking at gross rental yields, which is an estimate of the dwellings’ potential profitability that calculates the return on rental properties without operating expenses, they have remained steady in Australia at about 3.7% for the past 19 months.
In Perth, however, the gross rental yield is estimated at 4.4%, the second highest in the nation (after Darwin’s 6.5%).
As a result, Perth can well and truly be considered an attractive investment hotspot in Australia.
What to Consider When Investing in Perth
As a property investor considering real estate investment in Western Australia, the following factors will give you a well-rounded assessment of each suburb in Perth.
- Available Budget: Finances come first. Always research median house prices, interest rates and outgoings which will impact the operational expenses for your investment property.
- Modern Amenities and Attractions: Think educational facilities (like schools and universities), parks, and recreational facilities. Also, does the investment property offer you riverside, coastal, green, or urban views and amenities?
- Geographical Location: What are the locational drivers, is this property close to Perth’s central business district? Is it close to public transportation and transport links, commercial centres, local schools, and high schools? Is the coast nearby?
The Best Suburbs in Perth for Investors to Keep an Eye On
Below, we list the best suburbs in Perth based on the above factors above as well as other variables, so that you can zoom in on the right suburb for your investment goals.
These suburbs aren’t ranked and should be viewed as providing property investors with a broad sense of the investment potential of these Perth suburbs.
Swanbourne
Swanbourne, an upper-middle-class suburb with Federation-style homes, is a compelling suburb to consider when looking for properties with good value.
Looking at the data for the 12 months up to June 2024, the median price is $2,325,000 for houses and $772,000 for units. The rental growth is an attractive 66.3%! The rental yield in March of 2023 was 3.15%.
As for local amenities and attractions, Swanbourne is close to numerous schools (prestigious ones at that), beaches for renters who enjoy coastal living, and shopping precincts.
It is located 12 km from Perth CBD. It also helps that the suburb has such low crime rates.
Victoria Park
Victoria Park is a wonderful Perth suburb with a vibrant community and a lively urban life atmosphere, just east of the city.
The median sale price for a Victoria Park house is $870,000, and $405,000 for the suburb’s units.
Home buyers in the Perth suburb have witnessed a 7.4% rental growth. The rental yield for houses is 4.5% and for units is 7.1%.
Vic Park, as the locals call it, is certainly culturally rich. It features the Park Centre and Victoria Park shopping centres, a buzzing café strip, and unique retail stores.
As for its proximity to educational institutions, it is close to Curtin University. All of that is just 10 minutes from the Perth CBD.
Northbridge
Unlike the suburbs above, Northbridge is located inside the inner city of Perth, which impresses an urban feel upon it.
The median price for buying units is $460,000.
The suburb boasts a 25.5% rental growth, which is promising. The rental yield is 5.3%, which is relatively high.
Just a kilometre from the Perth CBD, Northbridge is a popular suburb among young professionals. It has a very dynamic, lively atmosphere. Think live performers, inspiring art, and international cuisines.
West Leederville
West Leederville is known for its modern, central conveniences and beauty, rendering it a sought-after destination.
Due to buyer demand and price growth, the median house price in this Perth suburb is $1,400,000, and the median unit price there is $450,000. Rent prices have increased by an impressive 25.5%, and the rental yield is 3.01%.
West Leederville is about three kilometres from the Perth city centre. The Perth suburb contains the West Leederville shopping centre and Lake Monger is nearby. Then, there is a lovely community garden and multiple schools (like the West Leederville Primary School), which young families will appreciate.
Shenton Park
If you are looking for renovated heritage homes with a modern feel and suburban lifestyle, Shenton Park is just the place.
When it comes to its houses selling, you will find houses listed for $1,900,000 and units listed for $545,000 on average. Rental prices have remained consistent.
The rental yields for houses and units are 2.7% and 6.0%, respectively.
You can reach the Perth city centre by travelling approx. four kilometres from this suburb of Perth. Full of parks and reserves, Shenton Park is a haven away from the busy city life. You will find shops like Floreat Forum, the Shenton Park College, and Shenton Park Dogs’ Refuge Home.
North Perth
North Perth is an authentic suburban yet affordable place with plenty to do.
To enter the market here, you can buy a house for about $1,220,000 or a unit for about $500,000. The price growth is 6.7%, which is low compared to the surrounding suburbs. However, you might consider this a fair trade (considering the low house and unit prices). And the rental yields are 3.5% for houses and 6.4% for units.
Five kilometres from Perth, you can visit this suburb for the North Perth Plaza, mouth-watering restaurant experiences, Beatty Park Leisure Centre, Woodville Reserve, Hyde Park, or the Rosemount Hotel, where patrons can enjoy live music.
Osborne Park
In the city of Stirling, you will find Osborne Park, which became a suburb for residential and industrial use after World War II.
With the help of our real estate agents, you can purchase a house or unit there for an average of $685,748 and $351,500, respectively. So, properties are remarkably affordable.
That affordability does not come at the expense of the change in rent prices either, which sits at a solid 18.2%. Lastly, Osborne Park’s rental yield is 5.0% for houses and 7.3% for units.
Within eight kilometres from Perth, you will feel like you are in one of Australia’s major cities, thanks to its showrooms, retail outlets, business offices, small recreational parks, gymnasiums, indoor sporting centres, and, most importantly, Herdsman Lake. Local residents can count on Main Street for a multicultural culinary experience.
East Perth
East Perth is an attractive investment opportunity, a benchmark for inner-city living and a merge between urban and suburban life.
If you are interested in its property sale market, the median house price and unit price are $1,500,000 and $481,000. Although they are in the higher price range for suburbs in Perth, the increase in rental prices of 23.7% might make it worth it. The rental yields are 4.1% for houses and 7.1% for units.
Two kilometres from Perth, this suburb has it all: eateries, sporting venues, and evening venues.
Think The Perth Mint, Claisebrook Cove Village, City Farm, Trinity College, Royal Street with its excellent brunch options, and the WACA, WA’s cricket hub.
Mount Claremont
Mount Claremont is located within the town of Cambridge and the City of Nedland.
When it comes to the sale prices, you can buy a house there for $1,810,000 or a unit for $1,053,000. The 10.0% rental growth is in the mid-range. And the gross rental yield for the suburb is 3.47%.
Nine kilometres from the city centre, you will find nature and modernity. That includes parks, reserves, Challenge Stadium, Mt Claremont Shopping Centre, Mount Claremont Primary School, John XXIII College, and Wollaston Theological College.
Mount Lawley
If you are after suburbs in Perth with a lively nightlife and community that says city more than suburb, Mount Lawley is the way to go.
With about $1,450,000 or $441,250, you can purchase a house or a unit, respectively, in this Perth suburb. The suburb has witnessed a mild 6.0% growth in rental values. Lastly, rent yield values are 3.4% for houses and 6.6% for units.
Central Perth is five kilometres away. Notable attractions in the suburb include the Queens Tavern, Astor Theatre, Mount Lawley Golf Club, Mount Lawley Senior High School, and Edith Cowan University.
Floreat
The inner-Western suburb of Floreat provides your future tenants with a beautiful suburban environment, modern architecture, and beachside living spots.
For about $1,905,500 or $830,000, you can be a Floreat house or unit owner, respectively. Rental values have seen a 9.5% increase, and the gross rental yield is 3.14%.
Perth CBD is seven kilometres from Floreat.
It has a city beach and sporting facilities, such as the Western Australian Athletics Stadium, the headquarters of Rugby WA, and Floreat Oval. It also features the Floreat Forum Shopping Centre with cafes, eateries, and the Floreat Hotel. As for educational facilities, the suburb is home to Floreat Park Primary School and Newman College.
Wembley
Wembley is a large Western suburb in Perth, between the City and Coast.
In Wembley, houses cost $1,540,000, and units cost $340,000, so they are in the mid-range of Perth suburbs. Rental properties cost 9.8% more, which is good news for investors like you. You can gain a solid 3.04% on average from your property in gross rental yield.
Seven kilometres from Perth, the Perth suburb contains tons of nature, mainly Lake Monger. The lake offers tenants a picturesque view and a lovely walkway.
Also, the suburb boasts recreational facilities, sporting clubs, restaurants lining Cambridge Street, and three local schools!
Nedlands
Nedlands is an inner-Western suburb in Perth located between the Swan River and the Indian Ocean. The suburb has both fancy properties and affordable housing for college students.
In this suburb, it costs about $2,290,000 and $775,000 to buy a house or a unit, respectively, which is a large investment. The increase in rental prices is just 2.7%, and the rental yield is 2.95%.
You can count on Nedlands, six kilometres from Perth, to bring you some of Australia’s best medical facilities, such as Sir Charles Gairdner Hospital, Hollywood Private Hospital, and the Lions Eye Institute. The suburb also contains tons of recreational facilities, including sports clubs, tennis courts, parks, a yacht club, ovals, and a golf club.
Want to Talk About the Best Suburb For You and Your Goals? We’re Here to Help
You might be feeling overwhelmed when looking at house and land packages or properties in Perth’s suburbs, sales activity, and vacancy rates in an attempt to determine the growth potential and investment suitability for your goals.
Contact us to talk about your unique financial and lifestyle goals so that we can support your Perth property investment.
