The Best Perth Suburbs to Invest in for 2024

The Perth property market experienced some of the strongest residential price growth Australia-wide in 2023. Prices are expected to rise again this year, so it’s a great time to invest here.

To help with your research, we’ve consulted industry experts, and shared our local insights, based on years of market experience, to bring you the best Perth suburbs to invest in for 2024.

A tree-lined Perth suburb can make for one of the best investments
A tree-lined Perth suburb can make for one of the best investment locations.

What makes a Perth property a great investment opportunity?

Two main factors give Perth property strong investment potential for 2024: the strength of Perth’s resources sector, and its growing population.

We believe Perth will continue to outperform most Australian cities with:

  • strong rental yields (profit from rent as a percentage of property value)
  • potential capital gains (profit from future resale).

Both rental returns and resale value depend on the property being desirable to renters and buyers, so do your homework to find out what is in demand in the areas you are looking in. An experienced property manager can help.

The most desirable properties are:

  • located where people want to live
  • a popular size/style
  • near infrastructure/amenities — transport, schools, beaches, shops etc.

NOTE: Properties with fewer desirable features can also be great investments. For example, if:

  • house prices are affordable and
  • they are in a location with strong rental demand.

Always estimate what any property you consider buying will rent for, weighing probable rent against the purchase price. Look for above-average yields — at present typical Perth returns are 5-6%.

Our experienced property managers at We Love Rentals can help estimate this.

It is also important to decide whether income or growth is your higher priority. Units usually have higher yields than houses. Houses generally have better capital growth.

Indicators of capital growth potential include:

  • redevelopment potential
  • proposed infrastructure
  • rising prices nearby.

What are the best investment suburbs in Perth for 2024?

Many suburbs in Perth, Western Australia are predicted to grow in value in 2024; however, some are blue-chip areas that exceed the budget of many investors.

Our focus here is on affordable areas we know well — they include ‘hidden gems’ and potential future hotspots.

All these suburbs have commuter transport, highway access, and family appeal. They also have strong rental demand.

1. Kelmscott

Median house price: $515,000

Median rent: $460pw

Average rental yield: 6-7%.

Kelmscott is 23 km from Perth, in the Armadale Local Government Area (LGA).

NOTE: Kelmscott outperformed most suburbs in 2023 in fact, we predicted its appeal in 2022!

2. Armadale

Median house price: $370,000
Median rent: $450pw
Average rental yield: 6-7%

Armadale is 36 km from Perth. It is Perth’s most affordable suburb, one of Australia’s fastest-growing suburbs, and a predicted investment hotspot. It was even nominated in the REA hot 100 suburbs to watch in 2024.

The Armadale LGA will benefit from planned new infrastructure investment nearby including a $4.3 billion ship building project, sporting pavilions, theatres, and a district hall. It also has great transport options connecting residents to popular areas like the CBD.

3. Seville Grove

Median house price: $450,000

Median rent: $524

Average rental yield: 5-6%

Seville Grove is 35 km from Perth, in the Armadale LGA.

REIWA’s last report found Seville Grove properties are Perth’s tenth fastest to sell and fourth fastest to lease.

4. Camillo

Median house price: $372,000

Median rent: $455

Average rental yield: 6.5-7.5%

Camillo is in the Armadale LGA, 25 km from Perth. Camillo made Smart Property’s 2023 list of 50 best investment suburbs Australia-wide.

5. Gosnells

Median house price: $440,500
Median rent: $470
Average rental yield: 6.5-8%

Gosnells is 20 km from Perth CBD, and 20 mins from Perth airport, yet close to forests, wetlands, and rivers. Its rental market is particularly strong.

6. Kenwick

Median house price: $470,000
Median rent: $480
Average rental yield: 5-6%

Kenwick is in Gosnells LGA, 17 km from Perth and 12 mins from the airport, close to wetlands, and Perth Hills.

Nearly $50 million worth of infrastructure is planned nearby, boosting demand.

What are the next steps?

Above are just a sampling of what Perth the astute property investor. The We Love Rentals team are happy to share our extensive experience across these, and other suburbs we work in.

We can help demystify the local rental market and estimate rental returns.

Our colleagues at Naked Edge Real Estate can also provide valuable insights to assist your property search.

Our past blog posts are also useful, especially for first-time investors. See, How to Buy Your First Investment Property.

Why not email us or call (08) 6254 6300 for friendly, professional advice.

 

I am the licensee of We Love Rentals and provide support to the team whenever needed. I began my real estate career over two decades years ago. While I loved seeing people achieve their dream of a new home for their family, I kept thinking that there had to be a better way of doing real estate – one with respect for the long term benefit of the client and one that focuses on customer satisfaction.