If you look at the past few years’ record of Perth’s property market, it has not been excellent with the advent of Covid 19. But this year’s recovery rate is pretty strong when it comes to the capital city Perth of Western Australia. The median house and unit prices in Perth are a bit low as compared to other cities in Australia. This also means that it is a good opportunity for property investment in Perth in 2021 as it is relatively affordable and the trends show that there may be a good growth expected in upcoming years due to the developments and demands of house on rent in Perth.
Now, before we begin with which suburbs are worth considering for property investment in Perth, let’s first understand why Perth can be a good choice for property investment in 2021. Before that, if you are investing for the first time in a property, we have an article including a few tips that can help you make a smart property investment decision (Smart property investment link).
WHY INVEST IN PERTH IN 2021?
- Property in Perth is relatively affordable than Sydney properties(Link of Best suburbs to invest in Sydney) or Melbourne Properties(Link of Best suburbs to invest in Melbourne) for that matter.
- A healthy and good demand is being noticed amongst rental property seekers in Perth this year.
- Despite Covid 19 outbreak, Perth has shown a bit of consistency.
- REPHRASE – As Perth’s housing market continues to grow at a healthy pace, compared to historical figures, now is a great time to invest in this city.
- REIWA has forecasted that Perth may record a 15% growth in 2021.
- The $1.5 billion partnership between the Commonwealth Government, WA Government and the City of Perth to re-energise the city, boosting Government and private investment into the CBD. This project will increase employment in Perth and may attract more migrants.
- Apart from this, there are multiple development projects coming up in Perth and with developments come prosperity leading to increment in price of Perth properties as well.
- Perth’s rental market has shown great growth in rental yields of 4% for houses and 5.3% for units and median price $556,509 for houses and $404,257 units in the first half of 2021.
- Perth is mostly dependent on the mining industry and it is also flourishing than before.
- Hence, this may be exactly the right time for one to invest in Perth. The prices being relatively low makes it affordable and increasing demand amongst buyers and tenants indicates better growth in future. A long-term investment may be able to provide investors with good growth over a period of time.
With all these being said and done! Let us now get to understanding which suburbs can be profitable to invest in Perth for 2021.
Remember that these are just some suggestions based on our research. Before your final investment decision, you must consult an expert face to face to clear all your doubts and further process. The list is not ranked from our end as the rankings may differ purpose to purpose – some may be seeking long term profits, some might seek positive cash flow, some might be looking for higher rental yields and other may be looking for better sale price. So we hereby list the best suburbs to invest in Perth based on our research with a few parameters that will help you to make a concrete decision. The data presented below are taken from the latest CoreLogic report.
Now, Let’s jump right into it! Here is the list of Few best suburbs to invest in Perth.
BEST SUBURBS FOR PROPERTY INVESTMENT IN PERTH FOR 2021
[1] Applecross:
Applecross is a riverside suburb of Perth located 10.4 km from Perth CBD. When it comes to property, Apllecross is one of the most prestigious suburbs in Perth. Applecross is a predominantly residential area with commercial activity along Canning Highway.
Applecross’s Median sale price is $1,657,500 for houses and $685,750 for units with an average annual growth rate of 1.43% and 2.69% for houses and units respectively. The median rent per week for Houses and units in Applecross are $800 PW and $455 PW respectively with gross rental yields of 2.51% houses and 3.45% for units.
[2] Ardross:
Ardross is a suburb located between Applecross and Mount Pleasant 10.9 km from Perth CBD. It is situated closer to all the amenities and schools etc.
The Average Annual Growth Rate of Ardross is recorded at 1.76% for houses and 10% for units. The median house price in Ardross is $1,000,000 and median unit price is $550,000 with gross rental yields of 2.86% for houses and 4.35% for units. Ardross’s median rent per week is $550 for houses and $460 for units.
[3] Kingsley:
Kingsley of Perth is located within the City of Joondalup located 19.6 km from Perth CBD. The average annual growth rate for Kinsley’s houses and units is 1.29% and -3.07% respectively. According to Corelogic reports, the median sale price for Kingsley’s houses is $600,000 and Units is $292,000 and median rent per week for houses is $480 and for unis is $408 with gross rental yields of 4.16% for Kingsley’s houses and 7.26% for Kingsley’s Units.
[4] Claremont:
Claremont is a western suburb of Perth situated on the north bank of Swan River. Claremont is located 9.1 km from Perth CBD. Claremont’s proximity to amenities, beach and river.
Claremont’s average annual growth rate is 2.76% for houses and 0.60% for units. The median sale price for houses and units of Claremont is $1,750,000 and $652,500 respectively. Claremont’s median rent per week is $990 for houses and $450 for units with gross rental yields of 2.94% and 3.59% respectively.
[5] City Beach:
The residential City Beach is a busy spot for summer barbecues and surfing, with its fine sand and strong waves. City Beach located 9.8 km from Perth CBD isn’t just one of the finest suburbs of Perth, but also one providing great value.
City Beach’s median house prices are reported at $2,040,000 with an average annual growth rate of 1.44%. The median rent per week for houses in City Beach is $900 with 2.29% gross rental yields.
[6] Floreat:
Floreat is a residential suburb located 7.6 km from Perth CBD providing a marvelous suburban environment to its residents residing closer to inner-city hubs. Properties in Floreat are characterised by their modern architecture.
Floreat has recorded an average annual growth rate of 3.46% for houses and – 4.46% for units. The median house and unit prices for Floreat are $1,595,000 and $1,390,000 respectively. Floreat’s median rent per week is reported at $800 for houses and $550 for units with the gross rental yield of 2.61% and 2.06% respectively.
[7] Scarborough:
Seashell Scarborough is located on Western Australia’s sunset coast, 13.8 km from Perth CBD. This evolving beachside suburb community of Scarborough is an eye catcher for surfing, cycling and family days out, with a laid-back vibe to its smoothie bars and brunch spots. It is also famous for its clubbing.
Scarborough’s average annual growth rate is 1.06% for houses and 1.22% for units. The median sale price for houses and units of Scarborough is $765,000 and $480,000 respectively. Scarborough’s median rent per week is $550 for houses and $450 for units with gross rental yields of 3.74% and 4.88% respectively.
[8] Coolbinia:
Coolbinia’s median house prices are reported at $1,220,000 with an average annual growth rate of 3.16%. The median rent per week for houses in Coolbinia is $613 with 2.61% gross rental yields.
[9] Dalkeith:
Dalkeith is an affluent western suburb of Perth located 8.8 km from Perth CBD. Dalkeith surrounded by the Swan River on three sides is home to beautiful, expensive and impressive mansions close to urban developments.
Dalkeith’s median house prices are $2,675,000 with an average annual growth rate of 0.19%. The median rent per week for houses in Dalkeith is $975 with 1.89% gross rental yields.
[10] Shenton Park:
Shenton Park is positioned right by the side of Perth’s Kings Park botanical gardens. Shenton Park is an affluent and awesome green space suburb with heritage houses and large mature trees. Shenton Park is located 6.1 km from Perth CBD within City of Nedlands and City of Subiaco.
Shenton Park has shown an average annual growth rate of 2.78% for houses. The median house and unit prices for Shenton Park are $1,410,000 and $475,000 respectively. Shenton Park’s median rent per week is reported at $695 for houses and $400 for units with the gross rental yields of 2.56% and 4.38% respectively.
[11] Cottesloe:
Cottesloe is western suburb of Perth located 11 km to the Perth CBD. It is a mix of older established homes and apartments with newer developments coming up. Cottesloe is situated on the beachside and has been home to many famous and notable residents like Australian Prime Minister – John Curtin.
Cottesloe’s average annual growth rate is 3.46% for houses and -2.13% for units. The median sale price for houses and units of Cottesloe is $2,400,000 and $750,000 respectively. Cottesloe’s median rent per week is $1100 for houses and $495 for units with gross rental yields of 2.38% and 3.43% respectively.
[12] South Perth:
South Perth is a residential suburb of Perth, that adjoins the southern shore of Perth Water on the Swan River. It also joins two major arterial roads—Canning Highway and the Kwinana Freeway. South Perth is located just 4 km to Perth CBD. There are a relatively higher number of high-rise apartment towers in south Perth, near the foreshore. It is a mix of mansions. High rise apartments and townhouses.
The Average Annual Growth Rate of South Perth is recorded at 1.09% for houses and 0.19% for units. The median house price in South Perth is $1,382,500 and median unit price is $540,000 with gross rental yields of 2.26% for houses and 3.85% for units. South Perth’s median rent per week is $600 for houses and $400 for units.
[13] Trigg:
Trigg is a beautiful beachy and residential suburb of Perth located 15.4 km from Perth CBD in the city of Sterling. Trigg is famous for its beach and all the fantastic beach activities such as swimming, surfing, board riding, catering etc. The style and form of housing in Trigg varies, ranging from older style holiday shacks and workers’ dwellings to large modern housing developments, small duplexes and houses built in elegant Mediterranean style.
Trigg’s median house prices are $1,300,000 with an average annual growth rate of 2.78%. The median rent per week for houses in Trigg is $750 with 3% gross rental yields.
[14] Mount Pleasant:
Mount Pleasant is a suburb of Perth located in the City of Melville on the banks of Canning river right 10.3 km from Perth CBD. Mount Pleasant has high density buildings and well mixed houses with many upcoming developments. A review on homely.com.au states and we quote “It’s the “aah nice!” of recognition when I say that I’ve bought and live here to the people I meet in the heart of Perth. Four delightful years. And counting.”
Mount Pleasant has recorded an average annual growth rate of 3.11% for houses and – 3.95% for units. The median house and unit prices for Mount Pleasant are $1,250,000 and $708,500 respectively. Mount Pleasant’s median rent per week is reported at $638 for houses and $500 for units with the gross rental yields of 2.65% and 3.67% respectively.
[15] Woodlands:
Woodlands is a small suburb in Perth filled up with picturesque parks, best cinemas in Perth and Perth’s 3 best high schools, shopping hubs, etc. Woodlands is situated 8.9 km from Perth CBD in the City of Sterling. Many of the streets in Woodlands are named after trees, such as oak, elm, birch, sandalwood and willow. Woodlands have a good mix of modern and older made houses.
Woodlands’s Median sale price is $1,050,000 for houses and $415,000 for units with an average annual growth rate of 1.19% and 1.49% for houses and units respectively. The median rent per week for Houses and units in Woodlands are $595 PW and $420 PW respectively with gross rental yields of 3.08% houses and 5.26% for units.
UNIQUE SUGGESTION
Apart from the regular property investment, you can also choose an unique option. If you are someone who seeks higher and good rental yields, then you may be interested in NDIS SDA properties as well. If you haven’t heard about it yet, no worries! You can learn more about NDIS Property Investment (NDIS – An exclusive opportunity) from our previous blog.
NDIS SDA basically provides investors 9% to 16% gross rental yield with an excellent opportunity of helping those in extreme needs. It is safe and secured as it’s a government backed investment plan. You can also check out the listings and availability of the NDIS investment property(Link of listings page) suburb or city wise. NDIS Property investment is gaining a really good momentum in the market right now with many positive responses (NDIS Property Investment Review).
CONCLUSION
Perth is definitely growing and evolving this year so it can be a good time for property investment right now. The suburbs listed here have shown pretty decent growth in terms of median price and rental yields too. There can be ups and downs in the valuation of houses and units so based on the data you can make your decision as to whether to invest in houses or units or both!
Remember! Whatever the purpose may be, the basics of property investment (Smart property investment link) remains the same. Before you really decide to invest in any property, do not forget to get expert advice personally and analyse the market well. You may also check out the Demand to Supply Ratio (DSR) of the suburbs as some suburbs might show a good potential based on data but the DSR can be low or vice versa leading to increase and decrease in vacancy rates.
We hope this blog was helpful to you and you were able to narrow down your suburb investment options that can serve your purpose of property investment in Perth in 2021.
If you have already tried investing in any of the listed suburbs, we would love to listen to you in the comments below! You can also leave your questions or suggestions in the comment section and our team will get back to you. Until next time, keep reading, researching and learning! Stay safe!
