Property investors who are looking for solid rental yields and an affordable purchase price should consider Perth’s 12 tightest rental markets, according to the Real Estate Institute of Western Australia (REIWA).
Rental shortage continues to be a significant challenge not just in Perth but in the whole state of Western Australia, with some suburbs having limited rentals available.
REIWA President Damian Collins said there is an “urgent need” for more investors in the state — fewer than 2,500 properties are available for rent in Perth and vacancy rates across the state remaining at or near record lows.
“We have some of the most affordable housing in the country as well as a high demand for rentals. There is enormous potential for investors to take advantage of the state’s healthy economy and strong property market to secure a low-risk rental," he said.
These are the 12 suburbs most in need of investors:
|
Suburb |
Listings For Rent (End of May) |
Median Weekly Rent Price ($) |
Median Sale Price ($) |
Rental Yield (%) |
|
1. Southern River |
1 |
500 |
591,500 |
4.4 |
|
2. Leeming |
1 |
600 |
787,500 |
4.0 |
|
3. Parmelia |
1 |
400 |
307,000 |
6.8 |
|
4. Kingsley |
1 |
520 |
695,000 |
3.9 |
|
5. Caversham |
1 |
500 |
520,000 |
5.0 |
|
6. Lockridge |
1 |
380 |
332,500 |
5.9 |
|
7. Swan View |
1 |
413 |
410,000 |
5.2 |
|
8. Hilbert |
1 |
468 |
420,000 |
5.8 |
|
9. Manning |
1 |
550 |
827,500 |
3.5 |
|
10. Madora Bay |
1 |
500 |
570,000 |
4.6 |
|
11. North Beach |
1 |
450 |
985,000 |
2.4 |
|
12. Iluka |
1 |
660 |
950,000 |
3.6 |
Mr Collins said many of the suburbs on this list are large suburbs with a population of more than 10,000. These include Kingsley, Southern River, and Leeming.
“For there to be just a single rental available at any time, highlights how important it is that we attract investors back to the WA market,” he said.
Five suburbs on the list have a median price below Perth’s median of $525,000, reflecting a general affordability which would make it easier for investors to break into.
Meanwhile, eight of the suburbs have gross rental yields of at least 4%.
“With a wide variety of price points highlighted on this list, as well as strong rental yields on offer, there is excellent opportunity for investors to purchase a high performing rental in these areas,” Mr Collins said.
—
Photo by @urlaubstracker on Unsplash
