• Revealed: Top suburbs for WA property investors

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    Revealed: Top Suburbs For WA Property Investors | REIWA

    According to the latest reiwa.com data, Medina, Armadale and Parmelia are among the top 10 Perth suburbs for investors to keep an eye out for in 2020.  

    REIWA President Damian Collins said with the Perth property market starting to show signs of improvement, there are some great opportunities out there for investors.  

    What the data shows

    “Our analysis showed there are a number of suburbs that have high rental returns for investors and the properties are leasing at faster than the average time. With interest rates at record lows, many of these properties are likely to be positively geared,” Mr Collins said.  

    Suburb Median days to lease Gross rental yield
    Medina 17 7.5%
    Armadale 27 6.2%
    Parmelia 14 5.6%
    Seville Grove 20 5.6%
    Port Kennedy 27 5.6%
    Banksia Grove 25 5.6%
    Maddington 20 5.2%
    Meadow Springs 24 5.0%
    Forrestfield 21 5.0%
    Clarkson 27 5.0%
    Overall Perth 28 3.9%

    *data in this table is filtered for suburbs with 28 or more house sales during the 12 months to December 2019 and took fewer days to lease than Greater Perth. 

    Top suburbs analysis

    “There are a lot of contributing factors that make a good investment property, however suburbs that have a high rental yield, such as Medina which had a 7.5 per cent rental yield, and lower than average days to lease, are ones to consider,” Mr Collins said.

    “In the 12 months to December 2019, it took approximately 17 days for a property to lease in Medina, which is well below the Perth average of 28 days, and demonstrates the suburb is in high demand by tenants.” 

    Of these top suburbs, eight of them are located south of the river, with Armadale and Parmelia following close behind Medina.  

    “It took 14 days on average to lease a property in Parmelia, which had a rental yield of 5.6 per cent. Armadale had a higher yield at 6.2 per cent, however it took 27 days on average to lease,” Mr Collins said.  

    Rounding out the top five is Seville Grove and Port Kennedy which both had a rental yield of 5.6 per cent.  

    Investing in Perth

    “While the suburbs in this top 10 list are not rated by their lifestyle, popularity or future growth, they have faster leasing times and high rental yield which is important to investors.” Mr Collins said. 

    “With Perth currently the most affordable capital city in Australia and the vacancy rate at a low of 2.3 per cent, now is the ideal opportunity for investors to get back into the Perth property market.” 

    For more information on investment, check out our beginners guide to investment.