Perth Property Market 2025: Top 5 Suburbs for Investment
Perth 2025 is a great opportunity for investment with high yields, growth and
affordability. Investors can look into emerging suburbs, infrastructure projects and
long term demand.
Key points highlight 5 high growth suburbs with coastal appeal, connectivity, affordability and lifestyle. Market trends, price growth and rental demand show where to invest for long term potential.
Investors get property values, infrastructure and expert tips to mitigate risks, maximize returns and navigate the market to make smart, data driven real estate decisions for long term financial success.
Perth Property Market 2025
The Perth property market continues to offer strong investment potential, with rising property values and robust rental yields.
If you’re investing $500,000 here’s what you can expect for property options, rental returns, growth and potential risks.
1. Property Options and Locations
With $500,000 you have plenty of options in Perth:
Houses: 3 bedroom house in outer suburbs like Baldivis, Byford, Armadale or Rockingham.
Units/Apartments: Modern apartment or townhouse in high demand areas like Joondalup, Scarborough or Victoria Park.
2. Rental Yield and Income
Perth has one of the highest rental yields in Australia making it a great market for investors looking for cash flow.
Average rental yield: 4.5% (2024-2025)
Potential annual rental income: $22,500 ($500,000 x 4.5%)
Monthly rental income: $1,875
With low vacancy rates (less than 1%) you can expect consistent rental demand and minimal risk of prolonged vacancies.
3. Growth Potential
Perth’s property prices have been growing and analysts predict it will continue. If current trends continue:
In 1 year: Property value could reach $525,000 – $550,000 (5%-10% growth).
In 5 years: Property value could reach $625,000 – $700,000.
In 10 years: Potential property value could be $814,000 – $1,000,000.
4. Mortgage and Finance
If an investor chooses to finance 80% of the purchase ($400,000) and put in a $100,000 deposit, the following loan scenario applies:
Monthly mortgage repayments: ~$2,200 (6% interest rate over 30 years)
Rental income: ~$1,875 per month
Out-of-pocket cost: ~$325 per month (if rent doesn’t cover mortgage)
5. Risks and Challenges
While Perth is a great investment destination, consider the following risks:
Market fluctuations: Property prices go up and down with economic conditions.
Vacancy risks: Demand is strong but choose a well located property for steady rental income.
Interest rate changes: If financing, rates rise could impact affordability.
Maintenance and management costs: Allow 10% of rental income for property maintenance and management fees.
A $500,000 investment in Perth real estate gives you rental income, potential capital growth and long term prospects. But careful property selection – focusing on high growth suburbs with strong rental demand – is key to maximising returns. Consulting with a local property expert or investment strategist can help you refine your investment approach.
Want to know the best performing suburbs in Perth right now? Reach out for a data backed investment strategy.
Top 5 high growth suburbs with the best investment potential
1. Alkimos: A High Growth Coastal Suburb in Perth
Alkimos, a coastal suburb 42km north-northwest of Perth’s CBD, has seen significant growth and development in recent years.
Alkimos: Location and Lifestyle
15.7 square kilometres with 15.9% of land dedicated to parks.
Population grew from 738 in 2011 to 6,270 in 2016, an impressive 749.6% growth. The majority of residents are 20-29 years old, couples with children. Most are in trades occupations.
Alkimos Real Estate: Market Insights and Trends
Alkimos is a hot spot, growing fast due to infrastructure and the coast.
Median house price up 21.0% in the past year to $595,000. Properties in Alkimos will be easier to sell in the future due to good market health indicators.
Everyday Living: Shopping, Dining and Recreation
Residents of Alkimos enjoy a range of amenities, including supermarkets like IGA in Alkimos Beach and Coles in the Alkimos Trinity estate.
Almost untouched beaches accessible via sand tracks from Marmion Avenue. Beautiful coastal views and recreational opportunities.
Education Hub: Schools and Learning Institutions
Alkimos has several schools:
Alkimos Primary School
Alkimos Beach Primary School
Shorehaven Primary School
Alkimos College (public high school opening in 2020, will expand to Year 12 in 2025)
St James Anglican School (K–11 Anglican school, will expand to Year 12 in 2021)
Butler College also services Year 8 to 12 students.
Getting Around: Transport and Accessibility
Alkimos has improved connectivity with:
Roads: Marmion Avenue extension and the Mitchell Freeway extension to the southern part of the suburb which terminates at Romeo Road.
Public Transport: Transperth has several bus routes servicing the area and the Yanchep rail line extension includes Alkimos Station making it easier to get to Perth CBD.
Alkimos has rapid growth, coastal living and growing infrastructure, making it a great option for both residents and investors. With increasing property values, better transport links and family friendly amenities, it’s one of the best high growth suburbs in Perth.
2. Armadale
Armadale is 28km southeast of Perth’s CBD and offers a balance of suburban living and natural surroundings. It has a mix of residential, commercial and green spaces to suit all demographics.
Location and Community Atmosphere
Armadale covers 24km² and has many parks and reserves that are perfect for families and lovers of the great outdoors. First home buyers and investors are attracted to the affordable properties within Perth’s commuting radius.
Residents love the urban convenience and rural charm of Armadale, backed by reliable infrastructure, essential amenities and plenty of recreational options. It’s a great place for homeowners and renters alike.
Property Market Trends and Investment Appeal
Armadale is gaining popularity with investors due to its affordability and demand. The suburb has seen moderate but steady growth with median house prices up 12.5% in the past year to around $450,000.
Investment opportunities range from established homes on larger blocks to newer townhouses. Rental yields are competitive and it’s a great entry point for investors compared to inner city areas.
With ongoing infrastructure upgrades and growing demand, Armadale’s prices are expected to keep rising so it’s a great choice for investors looking for long term capital growth and an affordable entry into the market.
Retail, Dining and Leisure
Armadale has diverse shopping, dining and entertainment options so you’re never far from everyday convenience. The suburb’s amenities cater to different lifestyles so it’s a great place for families, professionals and retirees.
Armadale Shopping City is the suburb’s retail hub with supermarkets, department stores and specialty shops. There are cafes, restaurants and takeaway outlets for everything from quick bites to family meals.
For leisure, there’s Minnawarra Park’s beautiful surrounds, Armadale Fitness and Aquatic Centre and nearby walking trails. Nature reserves provide additional outdoor spaces for an active and family friendly lifestyle.
Schools and Education
Armadale has a range of educational options for families including public and private schools. Vocational training facilities are also available for students pursuing academic or career focused pathways.
Notable schools:
Kingsley Primary School
Armadale Senior High School
Cecil Andrews College
South Metropolitan TAFE also has a campus in the suburb and offers courses for students and professionals.
Transport and Commute
With good transport infrastructure, Armadale has got you covered for getting to Perth and surrounding suburbs. The roads and public transport make daily commutes and travel easy for residents.
Roads: Albany Highway, Tonkin Highway and South Western Highway connect Armadale to the wider metropolitan area.
Public Transport: Armadale train line has direct services to Perth CBD and several bus routes for local connectivity.
3. Balcatta
10km north of Perth’s CBD, Balcatta offers a suburban lifestyle with urban conveniences. The area has a mix of residential, commercial and industrial zones to suit all residents.
Location and Community Feel
7 square kilometers, parks and recreational spaces for families and active residents. Central location and varied housing for professionals, first homebuyers and investors looking for affordability near Perth.
The suburb balances accessibility with suburban comfort, with strong infrastructure, essential services and recreational facilities. Its appeal is growing as more buyers discover its lifestyle and investment opportunities.
Property Market Trends and Investment Potential
Balcatta is an attractive market for investors and homebuyers due to its affordability and location. The suburb has recorded steady growth with median house prices increasing 10.8% over the past year to around $620,000.
Investment options range from older homes on large blocks to modern townhouses. Rental yields are solid, making Balcatta a good option for investors looking for strong returns and long term growth.
Ongoing infrastructure and demand will support Balcatta’s market. Its proximity to Perth and established amenities means it will always be in demand by buyers and renters.
Retail, Dining and Leisure
Balcatta has a variety of shopping, dining and entertainment options to suit all lifestyles. The suburb’s commercial areas have essential services, shopping centres and recreational spaces.
Primewest Northlands Shopping Centre is the main retail hub featuring supermarkets, specialty stores and service providers. Various cafes, restaurants and takeaways offer different dining options from casual eats to international cuisine.
Residents have green spaces such as Rickman Delawney Reserve and Conway Reserve for outdoor activities. Nearby gyms and sporting clubs add to the suburb’s active and family friendly vibe.
Schools and Education
Balcatta has a range of educational options, public and private schools. The suburb also has vocational training institutions so students and professionals have accessible learning pathways.
Notable schools:
Balcatta Primary School
Takari Primary School
Balcatta Senior High School
Also nearby are tertiary education facilities such as North Metropolitan TAFE for students and professionals looking to further their studies.
Transport and Commute
Balcatta has good transport links so you can get around Perth and the surrounding areas easily. Well planned roads and public transport make commuting and travel convenient.
Roads: Wanneroo Road, Reid Highway and Mitchell Freeway are major roads that connect to all parts of Perth.
Public Transport: Multiple bus routes are available in Balcatta that connect to nearby train stations and Perth CBD. Glendalough and Stirling train stations are a short drive away for further commuting convenience.
4. Mount Hawthorn
Mount Hawthorn is 6kms north of Perth’s CBD and offers a full suburban lifestyle with a mix of heritage homes and modern homes. It’s the suburb of choice for families and professionals.
Location and Community
2.1sqkm, tree lined streets, well maintained parks and a strong sense of community. Buyers want urban convenience and residential peace and quiet.
Mount Hawthorn’s lively community, established amenities and inviting feel make it a prime location. Mix of character homes and modern properties continues to attract buyers and investors.
Market Trends and Investment
Mount Hawthorn is a sought after suburb due to its proximity to Perth and high demand for well located homes. Median house prices have grown 9.6% in the last year to around $1.1m.
Renovated character homes, townhouses and boutique apartments offer diverse investment opportunities. Steady rental demand means consistent returns, making Mount Hawthorn a great choice for both investors and homeowners.
With gentrification and infrastructure improvements ongoing, Mount Hawthorn is seeing property value growth. Lifestyle and location means long term growth and high buyer demand.
Retail, Dining and Leisure
Mount Hawthorn has a dynamic mix of shopping, dining and entertainment to suit all lifestyles. Main commercial precincts have boutique stores, services and vibrant cafes.
Mezz Shopping Centre is the main retail hub with supermarkets, specialty shops and local businesses. Cafe and restaurant scene has popular venues offering diverse dining experiences.
Residents unwind at Menzies Park, Les Lilleyman Reserve and local fitness centres. Scenic walking and cycling trails add to the suburb’s outdoor lifestyle and community spirit.
Schools
Mount Hawthorn has quality education options for families with highly regarded public and private schools. Proximity to universities also makes it attractive to students and professionals.
Notable schools:
Mount Hawthorn Primary School
Aranmore Catholic Primary School
Aranmore Catholic College
Bob Hawke CollegeAnd with nearby universities and training facilities students can pursue higher education or vocational paths.
Transport and Commute
Mount Hawthorn has great transport options so you can get to Perth’s city and surrounding areas easily. Road networks and public transport make daily commutes a breeze.
Roads: Scarborough Beach Road, Charles Street and Mitchell Freeway are major routes for motorists heading to the CBD and beyond.
Public Transport: Several buses pass through Mount Hawthorn, connecting residents to nearby train stations and the Perth public transport system. Glendalough and Leederville train stations are close by.
Mount Hawthorn’s mix of heritage charm, strong property market and vibrant community makes it a top pick for buyers and investors looking for an inner city lifestyle.
5. Forrestfield
15kms east of Perth, Forrestfield has suburban tranquility and natural charm. Big spaces and welcoming atmosphere suits all types of homeowners; young families to retirees.
Location and Community Feel
15 square kilometers of open spaces, reserves and recreational facilities. Expanding community as more buyers want a harmonious lifestyle with urban convenience.
Well supported infrastructure, services and connectivity makes Forrestfield desirable. Balance of accessibility and affordability makes it a long term residential proposition.
Property Market and Investment
Forrestfield’s property market is strong and appreciating. Median house price up 7.8% over the past year, around $550,000.
Older homes, townhouses and new builds to suit all budgets. Strong rental demand means good yields for investors.
Infrastructure and commercial projects will continue to drive growth. Affordability and buyer confidence makes Forrestfield a good growth market.
Retail, Dining and Recreation
Forrestfield has plenty of retail, eating and leisure options so you don’t have to compromise on lifestyle.
Hawaiian’s Forrestfield Shopping Centre is the suburb’s main retail hub with supermarkets, independent shops and services. Cafes, casual dining and restaurants for all tastes.
For relaxation and outdoor activities locals head to Hartfield Park, nature trails and sporting complexes. Fitness hubs and community clubs keep the community active and engaged.
Schools and Learning
Forrestfield has many schooling options so families have access to education across all levels.
Some of the top schools include:
Forrestfield Primary School
Wattle Grove Primary School
Close to vocational training and higher education institutions makes Forrestfield a good option for students and professionals looking to upskill.Forrestfield has easy transportation links and is a stress free commute to Perth CBD and beyond. Well planned roads and public transport makes it easy to get around.
Roads: Major arterials like Roe Highway, Tonkin Highway and Hale Road provides convenient travel routes to the wider metropolitan area.
Public Transport: Regular bus services connect the suburb to major transit hubs and the Forrestfield-Airport Link provides a direct rail to the city making it highly accessible.
With its great community, solid investment fundamentals and continuous improvement, Forrestfield is a great option for buyers and investors looking for affordability, convenience and long term growth.
FAQs
What’s the state of the Perth property market?
Perth’s market is strong with rising demand, low vacancy rates and population growth. Prices are up due to limited supply and ongoing infrastructure projects.
Investor interest is hot, with rental yields high due to a tight market. Affordable entry points in outer suburbs and good employment prospects in well connected areas means there’s continued demand.
Government incentives for first home buyers and low interest rates are helping the market. Despite economic ups and downs, Perth’s property market is looking resilient and attractive to buyers and investors.
Are house prices going up in Perth?
House prices in Perth have been on the rise due to migration, housing shortages and demand from investors and owner occupiers. Over the last 12 months prices have risen in many suburbs.
Competition among buyers, especially for good quality properties, is driving further price growth. Suburbs with good infrastructure, good schools and coastal proximity have seen the biggest growth.
With economic growth and infrastructure projects on the horizon, prices will continue to rise. The market is in favour of sellers but affordability is higher than other capital cities.
What are the best suburbs to invest in Perth?
The best investment suburbs in Perth are Alkimos, Balcatta and Armadale which offer affordability, high rental demand and infrastructure upgrades. First time buyers, families and investors are seeking capital growth.
Northern suburbs like Joondalup and Yanchep have long term prospects due to transport upgrades and lifestyle. Proximity to the coast and new developments makes them more desirable and investable.
Southern suburbs like Rockingham and Kwinana have affordable housing and high rental yields. Planned transport upgrades and employment in nearby industrial and commercial areas add to their appeal.
How has COVID-19 impacted the Perth real estate market?
COVID-19 initially slowed the Perth market but demand came back quickly with government incentives, low interest rates and a shift to lifestyle living. This has seen prices rise in key suburbs.
Interstate migration surged as people sought affordable housing and more space. The closure of international borders created a shortage of supply and competition among buyers and renters.
COVID-19 has also reinforced the demand for regional and suburban living. Buyers are prioritising outdoor space, home offices and proximity to amenities, and this has shifted Perth’s property trends to larger and better located homes.
What is the median house price in Perth?
The median house price in Perth is currently $620,000 and is growing annually. More buyers, population growth and low stock is driving this growth.
Outer suburbs and up and coming areas are more affordable with prices way below the city average. Suburbs with good infrastructure and lifestyle amenities command higher prices due to more demand.
Despite the price growth Perth remains one of the most affordable capital cities for a home buyer. Investors and first home buyers see value in the market compared to other major cities.
Is it a good time to buy in Perth?
Perth is a good time to buy with strong growth potential and affordable entry points compared to other Australian cities. Demand is rising in the key suburbs.
Low vacancy rates and high rental yields make Perth’s housing market a good investment. Suburbs with upcoming infrastructure are an added bonus for long term capital growth.
Competition is high in the popular areas but first home buyer grants and stamp duty concessions are incentives to get into the market. Buyers need to act strategically and focus on well located properties with growth potential.
What are the rental yields in Perth?
Perth has great rental yields, especially in the outer suburbs where demand is high. Gross rental yields range from 4-6% with some areas pushing even higher.
Limited rental supply and strong tenant demand means rental prices are going up and landlords are benefiting. Suburbs with employment hubs, transport links and lifestyle amenities tend to produce the best yields.
The low vacancy rate also means stable rental income for investors. Areas like Armadale, Rockingham and Balga are still performing well and attracting local and interstate investors.
How do Perth property prices compare to other Australian cities?
Perth is one of the most affordable capital cities in Australia with median house prices lower than Sydney and Melbourne. It’s better value for money and attracting both investors and home buyers.
While Perth prices are rising, they are more affordable than Brisbane and Adelaide. The affordability factor combined with the rental yields makes Perth a great investment destination.
The affordability and the strong economy means buyers are looking for long term capital growth. Compared to the eastern states, Perth is the lowest entry point with good investment potential.
What’s driving property prices in Perth?
Population growth, infrastructure and limited housing supply are the big drivers of Perth’s rising property prices. Interstate migration is boosting demand particularly in family friendly and coastal suburbs.
Employment opportunities in the mining and construction sectors are supporting housing demand. Government incentives for first home buyers and investors are also increasing competition in the market.
Low vacancy rates and strong rental demand is driving price growth especially in well connected suburbs. All these factors are putting continued upward pressure on property values across Perth.
Are there any government incentives for first home buyers in Perth?
The WA government offers a First Home Owner Grant (FHOG) of $10,000 for eligible buyers of a new home. This helps first home buyers get into the market with some financial support.
There are also stamp duty exemptions or concessions for properties under a certain price threshold. These savings reduce upfront costs making homeownership more affordable for first time buyers.
Low deposit home loan schemes and government backed programs also help first home buyers. All these incentives combined with Perth’s affordability means new buyers can get into the market at competitive prices.
What’s the forecast for Perth’s housing market in 2025?
Perth’s housing market will continue to grow in 2025 driven by strong demand, infrastructure projects and a strong economy. Property prices will keep rising especially in high growth suburbs.
The rental market will be tight due to housing shortages so rental yields will be attractive for investors. New housing and transport expansions will make outer suburbs more accessible and drive more interest in them.
Economic conditions and interest rates may change but Perth’s affordability compared to other cities will keep buyer demand strong. Investors and homeowners should expect continued price growth in key growth corridors.
How has the mining industry affected Perth’s property market?
The mining industry is a major player in Perth’s real estate market, impacting employment, wages and housing demand. Mining investment booms have historically driven property price surges across the city.
Regional mining hubs attract workers, increasing demand for rentals and homeownership in Perth. FIFO workers also drive rental demand in well connected suburbs close to transport links.
Commodity price fluctuations affect property trends, downturns slow growth and booms accelerate demand. Overall mining is a key economic driver and will support long term property market stability.
What are the issues with Perth’s housing market?
Housing affordability is getting tougher as prices and rents keep rising. First home buyers are facing more competition, with limited stock in key suburbs.
Construction delays and labor shortages are affecting new home supply, which creates bottlenecks and puts pressure on affordability and availability in both the rental and buying markets.
Economic factors such as interest rate changes and wage growth impact buyer confidence. While Perth is still relatively affordable, ongoing demand will push prices up and limit options for lower income buyers.
How does Perth’s rental market compare to other cities?
Perth’s rental market has higher yields and lower vacancy rates than Sydney and Melbourne. Investors get strong rental demand especially in well located and affordable suburbs.
Rental affordability is better than the eastern capitals but rents are rising making it tougher for tenants. Demand for family homes and apartments in good locations pushed rents up.
Compared to Brisbane and Adelaide, Perth is competitive in terms of rental returns. High demand and limited supply means high occupancy rates, it’s a landlord friendly market with steady rental income.
What’s the average rent in Perth?
Houses in Perth are around $620 per week and apartments are $550 per week. Rent has gone up due to demand and supply is tight.
In high demand suburbs rent has gone up significantly, especially in coastal and inner city areas. Family friendly suburbs with good schools and transport links also command premium rent.
Despite the increase Perth is still cheaper than Sydney and Melbourne. Investors are benefiting from strong rental demand and steady income streams in performing rental markets.
Are there affordable housing options in Perth?
Affordable housing is still available in outer suburbs and developing areas like Armadale, Balga and Kwinana. These suburbs have lower entry points and first home buyers and budget conscious investors.
Government initiatives like Keystart loans and first home buyer grants help with affordability. These programs allow buyers to get into the market with lower deposits and more options.
Affordability is decreasing in high demand areas but outer suburbs with good connections still offer value. Buyers willing to look at growing areas can find good quality homes at a better price.
How has population growth impacted the Perth property market?
Perths population growth has driven demand for housing and upped prices and rents. Migration from interstate and overseas has created supply shortages in certain suburbs.
Growth areas have benefited from the population boom with infrastructure projects supporting new housing estates. Suburbs along transport corridors are in high demand due to their accessibility and lifestyle.
The demand for homes has pushed up land prices especially in family friendly and coastal areas. Population driven housing demand continues to shape the Perth real estate landscape for long term growth.
What are the trends in the Perth commercial property market?
Perths commercial property has shown its resilience with strong demand for industrial space and office leasing post pandemic. Warehousing and logistics hubs are attracting more investors.
Retail spaces in high growth suburbs are still performing well supported by population growth and changing consumer behavior. Mixed use developments with residential and commercial spaces are gaining popularity.
With economic growth and infrastructure development Perths commercial market has many investment opportunities. Key business districts and industrial hubs are the hot spots for investors looking for stable long term returns.
How do interest rates impact Perth real estate?
Interest rates directly impact housing affordability and buyer activity. Lower rates have always increased demand, getting people to borrow and drive up prices in the key suburbs.
As rates rise, some buyers will delay purchases due to increased mortgage costs. But strong rental demand and limited supply will still keep the market stable.
Regardless of rate changes, Perth’s affordability against other cities means there’s always market activity. Investors and homebuyers should track rate movements to make informed property decisions in a changing environment.
What’s forecast for Perth property in the next 5 years?
Perth property will continue to grow driven by population growth, infrastructure projects and a tight rental market. Key suburbs will see ongoing demand and price growth.
Government investment in transport and urban development will boost property values in emerging suburbs. Buyers looking for long term growth areas will get capital growth over the next 5 years.
While external factors like interest rates and economic conditions will cause fluctuations, Perth’s affordability and lifestyle means the housing market will be resilient and full of investment opportunities.
Originally Published: https://www.starinvestment.com.au/perth-property-market-2025/
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