Perth might be ripe for investing, with vacancy rates at rock bottom, affordability higher than Sydney and Melbourne, and more. Image: Canva.
  • Armadale and Gosnells have rock bottom vacancy rates
  • Other suburbs featured all have vac rates well below Perth's average
  • Stock availability in these suburbs will shock you

We’ve been delving into a variety of different options across Australia, from the best investment suburbs in Sydney, Melbourne, Brisbane, Gold Coast, Sunshine Coast, and Adelaide, to options better suited to those with specific needs.

These included family suburbs in Sydney, investment properties on a budget, investors with a $100k deposit, and an overall best suburbs to invest in Australia.

Bargains could also be found in some of Perth’s most expensive suburbs.

This time around we’re ranking suburbs solely by yield, with no other metrics considered, which of course means you will need to do more research to find out what best suits you and your situation.

Top 20 Perth investment suburbs for houses

# Postcode Suburb Yield Rent Vac Rate
1 6031 Banksia Grove 6.2% $578 0.2%
2 6061 Westminster 5.9% $450 0.2%
3 6064 Marangaroo 5.8% $477 0.2%
4 6112 Armadale 5.8% $507 0.3%
5 6109 Maddington 5.6% $461 0.1%
6 6108 Thornlie 5.6% $480 0.2%
7 6170 Wellard 5.6% $465 0.2%
8 6035 Yanchep 5.6% $523 0.6%
9 6111 Kelmscott 5.6% $428 0.3%
10 6069 Aveley 5.5% $522 0.6%
11 6122 Darling Downs 5.5% $488 0.3%
12 6110 Gosnells 5.5% $480 0.4%
13 6037 Two Rocks 5.5% $505 1.6%
14 6036 Jindalee 5.4% $521 0.3%
15 6055 Guilford 5.4% $552 0.8%
16 6026 Woodvale 5.3% $672 0.2%
17 6065 Ashby 5.2% $574 0.2%
18 6066 Ballajura 5.2% $499 0.4%
19 6167 Kwinana Beach 5.2% $454 0.3%
20 6023 Duncraig 5.1% $715 0.3%
Source: SQM Research.

As has been the case so far, it is mostly middle to outer ring suburbs delivering best bang for the buck, with the occasional exception to the rule – this time around being beachside suburbs like Trigg, and not quite, but still close to the beach, Duncraig.

How is the rental market shaping up?

Demand is hot hot hot, as the song goes, with vacancy rates nationally as low as 0.8%, according to Domain.

The vacancy rate in Western Australia’s capital, Perth, has been dropping, unlike the temperature lately, from 0.7% in July 2021, to 0.6% in June 2022, and 0.5% in July 2022.

In some suburbs like Kalamunda, there were no rentals available at all – showing a 0% vacancy rate.

Suburbs included in the highest yield list above such as Armadale and Gosnells featured in the bottom five vacancy rates for this article in September. The vacancy rates for both suburbs were 0.2% at the time.

SQM Research’s data shows the vacancy rate has improved somewhat to 0.4%, albeit that’s not much of a change in the broader scheme of things.

Vacancy rates for Gosnells, 6110

The vacancy rate for Armadale is a smidge below that, at 0.3%.

Vacancy rates for Armadale, 6112

Market insights

The Property Tribune has previously covered what will happen to the rentals in the Australian property market, with the crux of it showing that rental affordability is at all-time lows.

We also covered several pieces of research over the past two years about how tenancy law changes affect the rental market.

Suffice it to say that most landlords won’t leave the rental market because of changes to renting laws, despite what some surveys will tell you, but there are poignant lessons from history to learn from nonetheless.

Perth’s top 5 suburbs to invest in

Banksia Grove is about 30 kilometres out of the Perth CBD, with a car trip to the suburb some half an hour, with public transport options taking a touch less than an hour.

The latest SQM Research shows the suburb currently has 17 properties for rent available.

Rental stock available for 6031

Rental vacancy rate for 6031

Next on the list is Westminster, which was previously part of the suburb of Balga. Homes there are a 20 minute hop to Perth city, and the homes available for rent are almost double that of Banksia Grove.

Rental stock available for 6061

Rental vacancy rate for 6061

Nearby Marangaroo is third on the list, with the vacancy rate for the postcode a paltry 0.2%.

Rental vacancy rate for 6064

The number of properties available for rent in Marangaroo is also fairly low, the suburb has a whopping 24 available for rent.

Rental stock available for 6064

Armadale comes in at fourth place, with the suburb featuring just vacancy rates that make investors looking for high-demand areas salivate.

Rental vacancy rate for 6112

The outer ring suburb of Armadale is some 37 kilometres from the Perth CBD, or about 40 minutes by car. It also features quite a few more properties available for rent at above 50 properties.

Rental stock available for 6112

Bringing up the rear is Maddington, a suburb that’s only 20 kilometres from the Perth CBD, with great connectivity to Perth Airport.

Maddington currently has a rock-bottom 0.1% vacancy rate, and a paltry five properties ready to be leased.

Rental vacancy rate for 6109

Rental stock available for 6109

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Before making any financial decisions, please do your own independent research, taking into account your own situation. This article does not purport to provide financial or property buying advice. See our Terms of Use.



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