Ten Perth suburbs to consider investing in

If you're thinking about purchasing an investment property, we have listed the top 10 Perth suburbs worth considering based on their average gross rental yield.

What is the ‘rental yield'?

In real estate, rental yield is a measure of how much cash a property produces each year, as a percentage of the property value. The rental yield can be helpful in determining the potential return of an investment property. A high yield means good annual returns for investors.

As a benchmark, the rental yield for the Perth metro region currently sits at 3.8 per cent based on the overall median rent price of $360 per week and median dwelling price of $488,000. This means on average, a typical property investor can expect to generate a 3.8 per cent annual return on their property purchase price.

1. Leda

At the top of the list is Leda, with a rental yield of 5.5 per cent. Leda is situated 35 kilometres south of Perth city and is in close proximity to the coastal suburb of Rockingham. For an investment property in this suburb, you can expect to receive a median rent price of around $300 per week.

Leda shares the top spot with Cooloongup and Glendalough, which also have rental yields of 5.5 per cent.

2. Cooloongup

Cooloongup sits around 40 kilometres south of Perth, bordering the coastal suburbs of Safety Bay and Rockingham. The suburb is home to a large nature reserve and Lake Cooloongup, and is a popular choice for families. With a rental yield of 5.5 per cent, you can expect to receive a median rent price of $298 per week for an investment property in Cooloongup.

3. Glendalough

Situated only six kilometres from the Perth city, Glendalough joins Leda and Cooloongup in top spot for rental yield. The suburb, nestled between Lake Monger and Herdsman Lake, has a rental yield of 5.5 per cent and if you decide to invest in the area, you can expect to receive a median rent price of around $280 per week. Glendalough is an attractive investment choice due to its close proximity to the CBD and the Leederville entertainment hub.

4. Maida Vale

Next on the list is Maida Vale, which has a rental yield of 5.3 per cent. This suburb is in close proximity to the domestic and international airports, making it a convenient location for fly-in-fly-out renters. If you're considering buying an investment property in the area, you can expect to receive a median rent price of around $465 per week.

5. Northbridge

Northbridge rounds out the top five, with a rental yield of 5.3 per cent and a median rent price of $400 per week. This suburb is an urban haven of hidden bars, popular restaurants, brunch spots and boutiques. Northbridge households are predominantly made up of couples without children, singles and share houses.

6. Stratton

Stratton follows closely behind, with a rental yield of 5.3 per cent and a median rent price of $330 per week. This suburb is situated 19 kilometres from Perth city, and is close to the Swan Valley and Jane Brook wine region. If you purchase an investment property in the area, it takes on average 46 days to find a tenant.

7. Brookdale

Brookdale rounds out the suburbs with a rental yield of 5.3 per cent. If you purchase an investment property in the area, it takes on average 45 days to lease the property and the median rent price is $298 per week. Brookdale is a mixed-use suburb with rural and residential areas within its boundaries. It's also a popular area for families due to its relaxed suburban nature and wide open spaces.

8. Kenwick

This suburb has a rental yield of five per cent and is conveniently located near the Roe and Albany Highways, creating easy access to the CBD, and the domestic and international airports. If you were to invest in the area, you could expect to receive a median rent price of around $298 per week.

9. Camillo

Camillo also has a rental yield of five per cent. This suburb is situated 23 kilometres from the Perth CBD and provides a suburban lifestyle close to Araluen Botanic Park, making it a popular choice for families. If you purchase an investment property in the area, it currently takes around 46 days to lease a property and you can expect to receive a weekly rent of around $273 once tenanted.

10. Armadale

At number 10, Armadale has a rental yield of five per cent and a median rent price of $260 per week. Armadale is a growing regional hub, with a number of shopping precincts and a convenient train station connecting residents to the Perth CBD. This suburb is a popular locale for families and couples.

Are you looking to buy an investment property? Find properties for sale on reiwa.com or speak to a local real estate agent for more advice.

*Rental yield is based on the median dwelling price (houses and units) for suburbs with greater than five sales for the three months to February 2017. Rental yield, properties leased and average leasing days based on aggregated data for houses and units. All figures based on data for the three months to February 2017. Yields are based on gross figures and are prior to any other expenses.