First published 15th September, 2021
With Perth’s property market being one of Australia’s most affordable, many interstate and overseas investors are turning their attention to the west. But if you’ve never been to Perth, how do you what the best suburbs for investment properties are?
That’s why we’ve written this guide so as an interstate investor, you’ve got confidence on building your Perth investment home.
If you have any questions not listed below, send us an email and we’ll get one of our team members to reach out.
Is now a good time to build in Perth?
Yes, because there are low vacancy rates, low unemployment, and a low median house price.
Low Vacancy Rates
Following COVID-19, vacancy rates were at their lowest in 40 years because more people moved back to Perth rather than leaving. Ex-pats and FIFO workers who were unable to fly took up residence in Perth, while border restrictions and quarantines prevented people from leaving.
Now that the borders have been lifted, Perth is seeing an influx of people moving West. This includes international students attending universities, overseas migrants looking for work, and interstate families chasing an affordable lifestyle. All these individuals require somewhere to live and rentals are their preference.
Low Unemployment
Not many would have predicted that Australia would be struggling to find workers following the company closures and job redundancies due to COVID-19. But that’s the situation, with Perth possessing the lowest unemployment rate in the country at 3.1% (taken December 2022). The labour shortage is so severe that the State Government launched the Skilled Migrant Employment Register to introduce employers with skilled migrants.
The low unemployment rate not only encourages more people to move to Perth, but ensures incomes remain high. That’s why Perth has the second highest median weekly income of $1,815, which is only $14 behind Sydney in first place.
Low Median House Price
With a growing population that can easily find employment, you’d think that house prices would be increasing. And they are. But compared to the Eastern States, Perth’s median house price is incredibly affordable.
Perth’s median house price is $560,000, which sits significantly behind Brisbane at $765,000.
But when you factor in Perth’s higher median weekly income, this is when their affordability becomes apparent. On average, 35.4% of Perth’s weekly income goes towards paying off the mortgage. In Brisbane, that figure is 54.9%. And in Melbourne and Sydney, it’s 61.8% and 79.6% respectively.
House prices are rising because the demand for Perth’s properties is outstripping supply. And this increase is expected to continue as Perth continues to perform strongly both economically and socially, with few restrictions in place.
Should I build a new home or buy established?
Both options have their benefits, but one of the major benefits of building in this market is that you can build the home you want. Established homes are selling quickly, so unless you’re prepared to put in an offer within 48 hours, you’re likely to miss out.
Plus, you know exactly what you’re getting. Photos of established homes might not be the most accurate representation of what you’re buying, and fingers crossed a floor plan is included. With building, you get a list of every single item in your home- from the kitchen appliances, the colour and brand of the carpet, even the colour of the tile grout.
Maintenance is another factor. Many established homes that are for sale for months on end require a lot of attention. This means you’ll be paying your property manager to organise more costly maintenance visits. With new homes, you’re getting modern appliances that come with warranties for your peace of mind.
What Perth suburbs are good for investment properties?
There are many suburbs in Perth that will provide generous returns with low median prices and high rental demand. In fact, the majority of Perth suburbs have experienced growth in both their median sale price and the average rent! So some of our top picks that will provide long term growth are:
- Eglinton: This beachside suburb in Perth’s north will get it’s own train station in 2024, shopping centre, and more schools while benefiting from the future Yanchep Town Centre.
- South Guildford: Recent residential development has seen this suburb grow. It’s 5 minutes to wineries and pub in the Swan Valley, and on the other side is the Perth Airport.
- Piara Waters: Nearly 20 minutes south of Perth is where you will find leafy streets, plenty of parks, new schools and more amenities that every family looks for in their neighbourhood.
- Lakelands: This recently developed suburb is close to Mandurah and only a kilometre from the beach. Many first home buyers have chosen to build their family home, but there aren’t many rental properties available (at the time of writing, there are only 6). There’s already a huge shopping centre, a new public secondary school, and the freeway nearby. Plus, the new train station opened in 2023.
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We’ve been around since the 1960s and have seen how much Perth has transformed. We’ll work with you to figure out what your best investment strategy is and then provide the best land and house design to suit. Plus, with our in-house investment team, we’ve got access to extensive research tools. All you need to do is fill out the form and we’ll build your investment property in Perth.
