Perth is growing quickly, so many people want to purchase property in the city. Because many people want to live in the suburbs, most investors choose to purchase property in growing suburbs. So, what are the best suburbs to invest in in Perth?
The best suburb to invest in Perth is Armadale. Armadale’s sales volumes have doubled in the past year. The suburb has a substantial retail commercial center and numerous schools. Baldivis and Brabham are also great suburbs to invest in because of their low vacancy rates and high affordability.
Now that you know the 3 best suburbs to invest in Perth, I will talk about a few more suburbs that you should consider purchasing property in.
Best Suburbs to Buy in Perth
Perth’s gross residential rental yield growth of 4.4% has continued to outpace other cities like Sydney and Melbourne, making Perth a prime city for investors. Here are some of the best suburbs to buy property in in Perth, Australia.
Armadale is a great choice when it comes to those seeking to purchase property in Western Australia. It has an affordable housing market and many diverse amenities that make the area a great place to be. Because of the affordability and amenities, it is slowly becoming more popular, which is great for investors. There are also many infrastructure developments being done in the area.
In the past year, home values in Armdale have doubled, with the median remaining below $300,000. This means the housing in this area is more affordable than in many other places. Armadale is also surrounded by many schools and trains that go to Central Perth, which means families will likely soon move to the area.
In Baldivis, houses spend about 15 days on the market. The median property value of a house in this suburb is currently $465,000, with an annual capital growth of 9.41%. The population of this suburb is quickly rising. In 2011, the population of this suburb was 15,833 people. By 2016, the population was 31,665, meaning that the population grew by 99.4%.
This suburb is near the sea and is one of Perth’s highest employment zones. Baldivis is quite affordable considering the fact that it is next to the sea and has many parks and amenities nearby.
Brabham has become one of Perth’s most popular suburbs over the last 10 years. It’s the heart of the Swan Valley and it’s actually next door to Whiteman Park. There are many family parks within this suburb which make it a very popular family-friendly area. The most popular park in the area is the Jungle Park in Whiteman Edge.
People have said that the community is great because the people are extremely helpful and caring. It is one of the fastest-growing, most exciting suburbs to invest in. Over the past two years, the quarterly sales of this suburb have shown that property is quickly rising in demand. Houses typically cost around $400,000, and only about 0.5% of the suburb is vacant.
Ellenbrook is a great suburb to invest in because it has affordable land and homes. It’s a beautiful, natural environment with many well-planned outdoor spaces. There are plenty of good schools, childcare centers, parks, and playgrounds in the area, which makes it a great place for families. It is also very safe and quiet.
Buying an investment property in Ellenbrook would be a great idea considering that rental yields for units are currently 7.21%, with an average median rent of $390 per week. The units have seen 3.04% growth in the past quarter and 5.17% growth in the past 12 months.
Ellenbrook currently has 678 houses available for sale, with the median price of a house being around $450,000. Houses in this suburb spend about 21 days on the market. The vacancy rate is also 0.4%.
This suburb is a great area with many different amenities such as gyms, supermarkets, schools, doctors, and car mechanics. It is a good area for those that enjoy a semi-rural lifestyle. It also is close to major employment zones like the Perth Airport.
The Forrestfield council is optimistic about the airport connection, and they strongly believe that it will increase foot traffic throughout the city. The real estate portfolio in this suburb includes a blend of block apartments, attached homes, and stand-alone homes.
The number of home sales in Forrestfield has increased in the past few years, and the currency vacancy rate of this suburb is about 0.2%. Homes in Forrestfield typically cost around $400,000. The gross yield in Forrestfield is 5.02%.
The population of Hocking is expected to grow by 71% by 2041. Hocking has schools, parks, a shopping center, and the Yellagonga Regional Park nearby.
Hocking has a total of 126 houses currently available for sale. The median price of a house is about $575,000. It also has an annual capital growth of 8.49%. In the past 12 months, about 118 houses were sold in this suburb.
Joondalup is actually considered to be one of the most progressive suburbs in Western Australia. This suburb is known for its unique parks, gardens, lifestyle, and culture. It also is home to many prestigious schools, which are attended by thousands of local students. The rental demand for homes and apartments in Joondalup is high, and the residential area of the suburb is about 0.4%
Rent in Joondalup costs around $506 per week. To buy a house in this suburb, you will pay about $900,000. While houses are expensive in this suburb, if you are an investor, this high-cost high-yield investment will likely pay off, especially when you consider how many people want to live in Joondalup.
Orelia is growing quickly. However, the cost of homes in this area is increasing just as quickly. Luckily, homes in this suburb are still relatively affordable, as they typically cost around $350,000. The average cost of rent in this suburb is about $457 per week.
The rental growth is up 21.9% and the sales growth is up 18.4%. Houses typically spend around 6 days on the market, and apartment units spend around 9 days on the market. Rental yields are above 6%, and only about 0.3% of this suburb is vacant.
Orelia is very close to a major industrial-commercial employment zone. There are also trains that go to the Perth CBD. This suburb has great local amenities.
Sales activity in the Waikiki suburb has increased from 70-80 sales per quarter in 2020 to 130-140 sales per quarter in 2022. Waikiki is reasonably priced and offers residents an exciting lifestyle, as there are a few beaches to the west of this suburb. Rockingham Lakes Regional Park is also nearby.
Houses in this area typically sell for around $300,000-$400,000. Property investors in this area have enjoyed capital gains of 19.47% over the last 12 months. The median cost of homes in Waikiki increased by 29.71% during a 3-year period.
Wellard is slightly more expensive than the other suburbs I mentioned, but that is for good reason. The number of house and property sales in Wellard has doubled in the past two years. Wellard has many parks, schools, and a shopping center. It is close to Central Perth via rail and the Kwinana freeway. The population grew by about 179.5% from 2011 to 2016.
Wellard has about 399 houses currently available for sale, with the median property value being around $441,000. There were also 349 house sales in the past year. Houses spend around 16 days on the market. This shows that houses are in high demand. Renting an apartment in Wellard costs an average of $490 per week.
Highest Growth Suburbs in Perth
The following table shows the median cost of a house in some of the highest-growth suburbs in Perth. It also shows the anticipated growth in the value of homes in each suburb.
|Suburb||Median Price||1-Year Growth||10-Year Growth|
Highest Rental Yield in Perth
The following table shows the median cost of rent per week in the suburbs mentioned above.
|Suburb||Medium Rent Per Week||Rental Yield|
How to Identify a Growth Suburb
The simplest way to identify the potential growth of a suburb is to understand where the rental yield is rising. The rental yield indicates that there is a strong demand for rental accommodation in the area. Areas with rising population and signs of gentrification are areas with high renovation, an uptick in shops, cafes, and local business openings. This is a sign that it is a great suburb to invest in and that the suburb is growing.
Real Estate Data
One of the most important ways to identify the growth of a suburb is to look into the real estate data of the area. The real estate data can be found in a variety of places, including the Australian Bureau of Statistics. On the Australian Bureau of Statistics website, you can find the previous property values, the number of properties available in the area, and the number of days that the property has been on the market on this website.
Sort through What’s Important
Now that you have found information about the suburb, determine what information is the most important. The most important pieces of data will be the number of days a property has been on the market, and if industrial changes are occurring in the area, what amenities and schools are available nearby, and the demographics of the people in the area.
Predicting Property Value Increase
Similar to predicting property growth, property value will increase when the demand for property in a location increases but the availability is low. The number of properties available in the suburb in comparison to the number of vacancies and rent price trends is very important information to know. This is an example of supply and demand.
If there are a lower number of vacancies, that is a sign that this location is highly sought after by residents. When the area is highly sought after, there is a good chance that if you purchase a rental property in the area, you will be able to charge more in rent than what has been charged in the past. This makes the value of the property increase.
What Makes a Suburb Increase in Value?
One of the main indications that a suburb will increase in value is the demand-to-supply ratio (DSR) in a certain area. A high DSR score shows that an area is more of a seller’s market. When an area is more of a seller’s market, prices will be high and people will likely be more willing to pay above the asking price for homes in the area.
It’s also important to look at all of the statistics of the area. The most important statistics to look at include the 40, 30, 10, 3, and 1-year growth rates of the area you are looking to invest in. You want to find an area that has done well in previous decades but maybe hasn’t done as well in the past 10 years. If the area has increased in value over the past year, the area is desirable but undervalued. Many investors purchase property in undervalued suburbs and make a lot of money.
Overall, there are many factors that affect which suburbs are best to invest in, especially when you are looking to invest in property in Perth, Australia. Luckily, there are many suburbs that are currently growing and will grow in the future, and most homes in these suburbs are reasonably priced. However, before you invest in property in any of these suburbs, look at the real estate data and determine whether or not you think property in this suburb is worth investing in.