The Best Suburbs In Perth For Property Investors

Perth has always been viewed as a highly desirable location for potential investors. With an ideal climate, strong infrastructure, vibrant economy, and a host of other factors, the hardest part is deciding amongst the best suburbs in Perth to invest in for the most favourable returns.

With the Sydney and Melbourne housing markets expected to drop by 3 – 6% in 2019, Perth has now become the ideal city for property investors. Recent research from Deloitte Access Economics has predicted an average of 3.8% growth over the next three years, with 2019 set to experience a 2.9% growth in state final demand, followed by a further 4.1% the year after. Figures which property investors are welcoming especially within Perth’s current ‘buyer’s market’ where properties are being snapped up for price levels not seen in over five years.

Perth Is Still One Of The World’s Most Liveable Cities

Ranked recently as Australia’s second most liveable city, and coming in at number 14 on the 2018 Global Liveability Index, it’s no question that Perth is a great place to live – and an even better place to invest. In fact, the sleepy capital city of Western Australia was recently named within Forbes Travel Guide’s Top 14 Destinations of 2019 sparking global recognition and a boost in local tourism investment, further adding to the value of Perth property.

So Where Are The Best Suburbs In Perth To Invest?

With such an abundance of growth suburbs to consider, a first thought should be around the dollar value and buyer personas which sit within your plans. The second thought – what is planned within those areas which could improve (or reduce) future value. As explained by specialist researcher and property writer, Terry Ryder, “Perth is one of those markets where property investors can turn to for not only affordable buying, but prospects of growth moving forward.”

A Closer Look At The Best Suburbs In Perth For First Home Buyers

Property investors looking to invest within the entry level price point of the Perth property market will have an opportunity to appeal to the ever-growing first home buyer network and entry-level rental market. The month of February 2019 saw 49% of all sales falling under the $500,000 mark, indicating that first home buyers are actively purchasing in this space, earmarking great opportunities for property investors.

Suburbs such as Langford (with a median house price of $357,000) are primed to increase in value thanks to the State Government’s Metronet rail Thornlie – Cockburn link project, with the suburb’s future train station set to boost CBD accessibility. The popular suburb of Cannington recently experienced a $350 million redevelopment to Westfield Carousel Cannington which introduced 60 new stores, 700 car bays and a 27,000sq metre land increase, helping it to become WA’s largest shopping centre. Further council plans have also been proposed to introduce a series of high-density dwellings, town squares and potentially light rail to the suburb’s centre.

Suburbs such as Nollamara come with a highly affordable median house value of $385,000, located just 10km from the Perth CBD and next door to the suburb of Yokine. It is interesting to note that Yokine properties have a median price value of $650,000. Yes that’s right, $265,000 higher than its neighbour. With the recent investment into Perth Stadium, Crown Towers, Elizabeth Quay and Yagan Square, suburbs such as Queens Park now fetch a median house price of just $472,500 whilst being just a stone’s throw from Burswood Peninsula, East Perth and the Perth CBD.

Which Are The Best Suburbs In Perth For Young Adults?

Why focus on young adults in particular? These forecasted figures from the City of Perth reveal the 20-24, 25-29 and 30-34 year age demographic groups as being the most prominent future Perth residents. It’s a classic economical scale of supply versus demand, with 20-34 year old residents forming a major part of the future property market, a stat worth considering for property investors.

In a recent REIWA article aimed at the most liveable cities for young adults, Northbridge, West Perth, Leederville, Scarborough andMount Lawley made the list for a variety of reasons. With rents ranging between $330 and $405 per week, each suburb also boasts a substantial number of 20-29 year old residents occupying 20-30% of each suburb demographic.

Whilst lifestyle, transport links and culture were of particular relevance in the suburbs mentioned above, factors such as ongoing redevelopment and investment also account for a large part. For example, the popular coastal suburb of Scarborough has undergone a major redevelopment project which has seen the area transformed into a vibrant hub of activity, backed by $30 million from the State Government and a further $27.4 million from the City of Stirling. The area now boasts a new skate park, swimming pool, amphitheatre and a range of new dining options to inject a boost of culture and lifestyle into the area, all of which benefit residents (and investors).

Since 2014, housing prices in the ever so popular suburb of Mount Lawley have fallen by 15.9% from a peak of $1.13 million. For the first time in years, you can now snap up a property in the area for under the million-dollar mark, with the average median housing price now sitting at $950,000. It is also worth comparing the suburb of Mt Lawley with its counterparts over East in Sydney (Paddington) and Melbourne (Hawthorn) which currently fetch prices of up to four times dearer – food for thought.

Where To Invest In Perth’s Northern Suburbs

One of the most notable investment opportunities in Perth’s North has to be Koondoola, which experienced a fall of 32.2% since its prices peaked at $438,000 in 2014. The suburb now boasts a median house price of just $297,000.

Travelling further North to Alkimos will see you pick up a property around the median price of $400,000 down 25.9% from $540,000 just 5 years ago. In a recent article by the Eastern ReporterCraigie was identified as one of Perth’s fastest selling suburbs, with an average of just 39 days on market, with median prices sitting at $430,000. The article also references Kingsley, a popular suburb for families and a sense of community, which has an average of just 38 days on market with a median price of $540,000. Additional suburbs to watch include Butler and Yanchep which, according to REIWA reports, both recorded median price increases in January 2019.

Is It Worth Investing In Perth’s Wealthiest Suburbs?

If you have the pennies to play in this space, the short answer is – yes.

REIWA property experts have labelled 2019 as the best time to buy property in five years, providing an ideal opportunity to invest in Perth’s premier suburbs. A recent Perth Now article identified a series of blue chip bargains for investors looking to capitalise on the current market conditions, including Swanbourne which peaked at $1.72 million in 2016 and has fallen by 17.6% to a median price of $1.41 million.

Similar to aforementioned Mount Lawley, North Beach properties now sit at an average of $905,500 down from $1.08 million in 2017. Meanwhile Perth’s most expensive suburb, Dalkeith, now sits at an average median price of $2.24 million as of February 2019, down from $2.8 million in 2010, with the suburb also holding the crown as Perth’s most expensive rental market with an average yield of $895/week.

A Little Out Of Your Budget Perhaps?

Neighbouring suburbs often provide an affordable alternative. For example, if Dalkeith’s price point is still too much, consider Mount Claremont ($1.22 million median) or Mosman Park ($1.28 million median) both just within a 10-15 minute drive away. Whilst the popular coastal suburb of Cottesloe commands a median price tag of $2.06 million, a short drive down the road to Claremont reveals median prices of $1.25 million, alongside additional coastal options in North Beach where properties average just $882,500. Further alternatives include Applecross, which currently sits at a median of $1.53 million, with neighbouring suburbs providing more affordable median prices including Mount Pleasant ($1.19 million), Attadale ($950,000) andBicton ($880,000).

Perth Really Is An Investor’s Dream

Given the Perth property market is in a state of flux, there are a host of opportunities for property investors looking to snap up bargains in one of the world’s most liveable cities. The challenge is knowing where to look and being clear on your price point, whilst keeping on top of future developments and industry news.

Whilst this article hasn’t covered all of the best suburbs in Perth for investors, the suburbs mentioned provide a good initial gage of some early opportunities which exist within the market. For full break downs of market information and investor resources, we advise visiting popular property resources such as REIWADomainCore Logic andRealestate.com.au to conduct your own thorough research.

Are You A Current Property Investor?

Want to know more? You may want to review our article on How To Maximise The Return On Your Rental Property or visit our blog for further investor tips.

If you are a property investor looking for a reliable property management company to handle your property investment, or you’re simply looking to switch agencies, we welcome you to contact us for an obligation-free chat with one of our experienced Property Managers.

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