Looking at houses for sale but not quite sure where to invest? Here’s your guide on where to buy in Perth and why we predict these suburbs to be a great return on investment.
Perth is known as one of the most liveable cities in the world. With its relaxed lifestyle, affordable property and amazing opportunities for leisure and fun – Perth truly is the envy of cities all around the globe!
With one quarter down for 2021, there have already been many positive signs for the Western Australian property market. Favourable market conditions include record low interest rates, low rental vacancy rates and rising rental yields which have all been influenced by the COVID-19 pandemic. There are also more favourable predictions on the horizon this year, including an 8% rise in property prices according to Westpac and a 10-15% growth in rent prices, according to REIWA President Damian Collins.
It’s no secret that Perth’s property is in high demand now more than ever – and WA has just been declared the most affordable state for housing for the third year in a row (according to REIWA’s Housing Affordability Report, September 2020 quarter). But, if you’re ready to get on the property investment bandwagon, read on for our tips on what to look at before making your purchase.
Real estate investment – what to consider
Property growth comes down to a wide range of factors, the most influential being a suburb’s proximity to schools, access to transport and the availability of amenities like shopping centres and parks. Additionally, property prices and a suburb’s lifestyle will influence its demand.
While you’re at it, look into the local commercial developments either underway or in the planning stages in your prospective investment area. Perth is currently seeing an influx of developments including the Subiaco Oval, the new Edith Cowan University campus, East Perth Power Station and Waterbank to name a few. These commercial developments will have a flow-on effect within their suburb, contributing to bustling localised economies in the future.
Whether you’re a first time home buyer or an experienced investor, we’re here to let you know which Perth suburbs you should keep your sights on in 2021 – and why.
Top Perth suburbs to invest in this year
Northbridge
With the bustling city centre at your fingertips and several new commercial developments nearby, Northbridge is gaining popularity amongst investors. The ECU city campus is expected to attract more than 10,000 people to the area, including housing for 9,000 students and staff. James Limnios, Chief Executive Officer at Limnios Property Group says, ‘the new ECU campus will create a 24-hour economy in Northbridge which will, in turn, contribute to increased safety, amenities and desirability for the suburb.’ The campus is set to open in early 2025, so now is the time to invest in the area – before everyone else beats you to it.
Subiaco
Subiaco’s popularity is set to skyrocket over the next five years, with significant investment into residential and commercial developments including the Subiaco Oval. The Oval will incorporate unique public experiences including recreational facilities, immersive educational experiences to learn about Noongar knowledge, culture and history, a heritage plaza and community greenspaces. The development is expected to bring 2,700 jobs to the suburb during construction, 660 ongoing jobs and more than 4,000 new Subiaco residents. Compared to some other Perth suburbs, Subiaco hasn’t yet seen significant growth rates as a result of COVID-19 factors, so it might be worth getting in before the rush.
Mount Lawley
Known for its beautifully restored character homes, leafy streets and busy cafe and boutique strip, Mount Lawley is a well sought after suburb. Not only is Mount Lawley a beautiful place to live, but according to James Limnios, it’s known as a high end suburb that delivers a fantastic financial return for investors. “Mount Lawley is proving itself to be a great up and coming investment opportunity. In the past year alone, it’s seen some incredible growth in terms of median house prices”. REIWA supports this with their report of an annual growth of 10.4% in the median house price, making Mount Lawley a location more desirable than ever for investors.
Cottesloe
With a median house price of $2.13m, Cottesloe has stunning homes set to deliver relaxing beachside living that will never go out of favour. It’s far enough away from the city centre to let inner-city stresses drop away while ensuring a short commute (only 12k to the CBD) for the best of both worlds! REIWA has reported a 6.5% growth increase in the last year, with a whopping 10.4% increase in this quarter alone.
Leederville
Similar to Mount Lawley, Leederville is known for its character homes and quirky attractions. The lifestyle in the area includes fine dining, trendy cafes, an art-house cinema and vintage boutiques – cue ‘double income, no kids’ couples between 25-50 years old. According to James Limnios, Leederville’s urban lifestyle and quirky culture makes it a magnet for trendy young adults. “It’s a bustling inner-city suburb showing high demand. Over the past year, Leederville has seen an average of around 665 online page views per property, compared to the WA average of 535.”
Mount Hawthorn
Mount Hawthorn is another idyllic Perth suburb that is close enough to the city, yet far enough to provide distance from the busy inner-city without compromising on amenities and recreation. In the last year, Mount Hawthorn has had a growth rate of 6.3% according to REIWA, indicating the popularity of the suburb has increased well beyond the average for Perth Metro.
South Perth
With its attractive lifestyle and close proximity to Perth’s CBD, South Perth is definitely a suburb to keep your sights on. This affluent riverside neighbour is populated with cafes, bars and foreshore parkland offering stunning views of Perth City. In close proximity to several private schools and a growing number of apartments, South Perth is in high demand by older couples and families who populate the area. With a 35.7% increase in the median property sale price between 2009 and 2019, greater growth is expected from this suburb in the coming years.
Scarborough
Scarborough has arisen as an attractive family location over the past few years, with the suburb’s new foreshore development attracting greater demand and providing a whole new level of entertainment and dining opportunities. The suburb is home to a good mix of units and housing, is nearby to the large Karrinyup Shopping Centre which has recently undergone extensive redevelopment and Scarborough is also in close proximity to good quality private and public schooling. With an attractive rental yield of 4.1% and a median house price of $770,000, Scarborough is expected to see greater growth in the coming years – not to mention the ideal position for a beachy lifestyle.
So, there you have it – our top suburbs to buy in this year to get the best return on your investment. Still not too sure on your best next move? We’re here to help navigate the market. In fact, after 50 years of Perth real estate, we’re the experts you want on your side whether you are looking at residential homes or commercial properties. Call our experts today!
