What to Consider When Investing in Perth Property

Western Australia, and especially Perth, has one of the most resilient real estate markets in Australia.

According to Reiwa, “Perth’s median house sale price recorded preliminary growth of 2.7 per cent in the March 2025 quarter, with the median house sale price rising from $750,000 at the end of 2024 to $770,000. The median unit price increased 4.0 per cent to $520,000 over the same period, up from $500,000.”

There are mining, technology, and infrastructural projects to thank for this thriving property market. Along with strong demand, low vacancy rates, growing population, and ongoing local government support, these factors render Perth a highly attractive spot for those considering residential property investment.

Despite the promising conditions, investors need to spend time understanding market trends and perform thorough research and budgeting to make informed decisions. These steps will help buyers pinpoint areas with the highest possible rental returns. To support this process, this article will focus on the main considerations throughout a property investment journey.

What to Consider When Investing in Perth Property

Learning about the nature of the Perth market and its latest trends gives you the needed insights to make the right property investment decision to achieve your desired outcomes.

Understanding the Perth Property Market

Over the last decade, Perth has stood out as one of Australia’s top-performing state capitals. Property price growth had remained strong and steady until the market neared an affordability ceiling. Then, growth rates slowed.

Still, the increase in median rent prices is undeniable for both houses and units. This self-moderation seen in Perth is also present across most capital cities; however, Perth contains it better.

To analyse this change in the nature of the Perth market, REIWA President Suzanne Brown says, “Slowing population growth has seen demand ease slightly. In addition, demand self-moderated over 2024, with an increase in the size of tenant households as people sought to share the cost burden of renting.”

She adds, “People have also chosen not to rent if possible, either by purchasing a home or remaining in, or returning to, the family home. There has also been an increase in new supply, particularly in outerlying suburbs where investor-owned new builds have been completed. As a result, we’ve seen the pressure on rent prices ease and the vacancy rate increase.”

Current Trends in the Perth Property Market

The rental market is currently witnessing a trend of increasing rental prices. They have averaged $680 for houses and $650 for units per week in late March and early April, with properties lasting about 16 days on the market.

Identifying the Right Property for Investment in Perth

By analysing different Perth suburbs and considering different investment property types, one can select a property that makes sense for their property investment goals. Here is how.

Researching Suburbs for Property Investment Perth WA

As an investor, you should recognise that conditions vary vastly across suburbs, which necessitates researching suburbs across Perth to determine which ones have potential for long-term growth.

That requires researching its annual growth rate and performance over a longer period, as well as factors like close amenities and transportation, safety level, and future infrastructural developments.

On the one hand, suburbs closer to the Perth CBD or major lifestyle attractions are highly demanded by tenants, translating into low vacancy rates and moderately increasing rent prices.

On the other hand, suburbs further from the CBD or within new land developments are experiencing higher vacancy rates, causing property managers or owners to lower rent prices. The reason is investor-owned new builds entering the market, giving supply the upper hand over demand.

Different Types of Investment Property in Perth

Investment properties in Perth tend to fall into one of two categories, and selecting the appropriate property can enable you to reach your financial goals.

Firstly, residential properties are popular ways of sourcing monthly income. Those who want long-term tenancies invest in single-family homes, which typically attract families and long-term tenants. Those who want a place to live and another to lease out opt for duplexes or townhouse residential developments.

As for urban centres (like the Perth CBD), buying an apartment there can attract students and young employees.

Secondly, commercial properties are used for business purposes and are common investments.. They may require higher costs for maintenance and improvements, but they can bring in rental returns that offset them, as their rental median property price is higher than that of residential developments.

These commercial properties can be retail stores, which benefit from the resurgence of local businesses post-pandemic. They can also be office buildings whose demand is dependent on the sector or industrial properties, which are in high demand, thanks to e-commerce growth.

Key Financial Considerations for Property Investment

Seasoned investors understand that finances can make or break investment opportunities, which necessitates planning for their budget and ongoing costs using the below tips:

Understanding Property Management Costs in Perth

Management fees, if the property is to have property managers, typically range from 8% to 12% of the weekly rent in Perth.

Effective property management boosts cash flow and minimises risks related to property investment with its services. This includes finding quality tenants, managing compliance, preparing tenancy documentation,  conducting maintenance and inspections, ensuring monthly payments from tenants, and adjusting rental values according to dynamic Perth market trends.

Weighing the return on investment for these services against property management fees helps determine how profitable property management is.

Budgeting for Your Perth Property Investment

Budget is the main factor in determining a buyer’s investment property pool. To elaborate, they typically consider their financing options for property development to determine the most suited mortgages for them.

This process entails determining the deposit they can afford (about 20% of the purchase price for property investors who are not paying lender’s mortgage insurance), looking at the best interest rates and repayment terms, and factoring in ongoing investment costs, such as management fees, insurance costs, and council rates. A finance professional with help connect you to the right lending solution.

Making Informed Decisions in the Perth Property Market

The secret to property investment is understanding the market nature and trends and making informed investment decisions to boost your portfolio’s performance, which means covering the following aspects:

Evaluating Potential Returns on Perth Property

Estimating the property’s potential rental yield provides an idea of its future return. This is a measure of its profit expressed as a percentage of the asset’s capital value. To make a data-driven estimate, consider the following factors and how they impact different investment opportunities:

• Rising Rental Prices: Significant price growth is seen in areas of low supply and high demand, boosting returns.
• Economic Stability: If a market is resilient with booming job opportunities, this stability should boost the rental yield.
• Interest Rates: Benefiting from the current borrowing environment can maximise income from the property.
• Property Location & Features: With the markers of a good location covered earlier, that leaves property features. Think appliances, garages, bathrooms, appliances, storage, and other features that boost the investment value and rental returns and enhance tenants’ quality of life.

Long-Term Strategies for Property Investment

Every investor’s needs are different. As such, your strategies should be tailored to you, your risk tolerance, and your long-term goals. These goals generally incorporate one or more of the following:

• Capital Growth: Investors might rely on capital growth in the long run (or the short run in areas with historically low supply). For Perth, the long-term benefits of investment properties are the preferred option for immediate wealth, as its market is seeing sustained growth and increased property values and rental income over time.
• Rental Income: Perth rental yields are seldom under 3%, which can translate to a steady income stream, boosting your investment portfolio’s performance.
• Tax Benefits: Tax savings and implications contribute to the cost of owning a property, which should be compared to its income. Whether it is positive or negative gearing, consulting with a tax accountant helps determine the appropriate approach.

Staying Updated on the Perth Property Market

Access to data about the local property investment market and its recent performance facilitates adjusting the investment strategy according to its dynamic trends. That means capitalising on growth trends, navigating rising interest rates, and charging more or less rent depending on fluctuations in median price values and supply and demand.

Since it may seem hard to maintain a good understanding of Perth’s market dynamic, working with local property managers (like HERE Property experts) solves that dilemma and boosts rental yields.

Leveraging Award Winning Services for Your Property Journey

Investing in award winning services maximises the rental yield, facilitates navigating the industry, and transforms one’s real estate investment portfolio. Below is how to approach that.

Finding Reputable Property Management Services in Perth

Choosing suitable property management services means investing in a property, keeping your tenants happy, and keeping your peace of mind.

Meanwhile, a trusted agency handles the complexities of keeping an investment property, relieving you of most of the stress of being a landlord by doing the following:

• Marketing and advertising
• Thorough tenant screening and background checks to find quality tenants
• Rent negotiations and collection
• Lease administration
• Facilitating landlord compliance
• Conducting maintenance and repairs
• Tenant relation management
• Conducting inspections
• Financial reporting

The Value of Expert Advice in Perth Property Investment

Whether you are investing in industrial or residential properties, a data-driven strategy and expert advice are needed. Local property management experts access insider data about Perth market trends and leasing out properties (including rental rates and median property price values).

They can advise you on how to adjust your investment strategy to fulfil your goals with a personal touch. Not to mention, they have local expertise in the Perth market that enables them to navigate it expertly, profiting off neighbourhood trends, future development projects, and high-performing suburbs.

At HERE Property, we can help you with everything from choosing the right property to managing it. To utilise our local expertise and tailored advice, contact us now! We are HERE to help.