Perth’s top 10 coastal suburbs for investment
Are you thinking about buying an investment property close to Western Australia’s beautiful coast?
We’ve pulled the top 10 Perth coastal suburbs with good investment opportunity, based on improved buyer activity and high rental yields.
What is rental yield?
Rental yield is the measure of how much rental income an asset is generating, as a percentage of the property’s value. The rental yield is useful for indicating the potential return of an investment property. A high yield means good annual returns for investors.
To put things into perspective, the rental yield for the Perth region is currently four per cent based on an overall median rent price of $340 per week and median sale price of $460,000. Based on this, if your rental property is generating a rental yield above four per cent, it’s safe to say that property is giving you good returns.
If buying an investment property near the beach is on your agenda, now is the time to begin your search, as there is potential that house prices could be on the rebound.
Sunset Coast Life Suburbia
SUBURB MEDIAN SALE PRICE % CHANGE IN
SALES VOLUMES / MEDIAN RENT
PRICE GROSS / RENTAL YIELD
- Heathridge : $430,000 / 27.7% / $360 / 4.4%
- Currambine : $471,000 / 26.3% / $378 / 4.2%
- Madora Bay : $470,000 / 21.9% / $370 / 4.1%
- North Coogee : $627,000 / 17.2% / $490 / 4.1%
- Mindarie : $660,000 / 13.8% / $515 / 4.1%
- Falcon : $365,000 / 13.5% / $295 / 4.2%
- Warnbro : $300,000 / 8.9% / $300 / 5.2%
- Alkimos : $390,000 / 7.0% / $320 / 4.3%
- Waikiki : $355,000 / 5.4% / $320 / 4.7%
- Rockingham : $328,000 / 5.0% $290 / 4.6%
reiwa.com analysis has revealed Heathridge as the number one Perth coastal suburb for investment. Heathridge recorded a 27.7 per cent increase to its sales activity – suggesting that buyer demand is improving in the area.
Investors in the area are charging a median rent price of $360 a week and are generating a 4.4 per cent rental yield
Following behind Heathridge in second place is Currambine with a 4.2 per cent rental yield and an increase in sales activity by 26.3 per cent.
If you are looking to secure an investment property in Currambine, you are looking at a median house price of $471,000 with a rental yield of 4.2 per cent.
Currumbine is close to the popular beaches of Burns Beach and Ocean Reef, making it a desirable destination for beach goers north of the river
Located within the city of Mandurah, Madora Bay is well known for its pristine and beautiful beach, which is an attraction for locals and tourists alike. Residents are naturally drawn to the lifestyle appeal in Madora Bay, especially those looking for a family friendly and peaceful suburb.
Madora Bay is proving to be an investment hotspot. Buyer activity in the area has increased 21.9 per cent and if you own a rental property, it was generating a rental yield of 4.1 per cent
At number four on the list is North Coogee which is located four kilometres south of Fremantle. The suburb overlooks Cockburn Sound and is a short distance to several stunning beaches, including Coogee Beach, C.Y.O’Connor Beach and South Beach.
In recent years there has been an uptick in new houses developed in the area which has been followed by a 17.2 per cent increase in sales activity.
To buy or rent in North Coogee is more expensive than the other suburbs on this list, but it’s a good investment opportunity with high rental returns and buyer popularity on the rise. The rental yield for the 12 months to October in North Coogee was 4.1 per cent
Rounding out the top five is Mindarie, which increased 13.8 per cent in sales activity. Mindarie is 36 kilometres north of Perth and is surrounded by foreshore and beaches with Mindarie Marina being its biggest feature.
From an investment perspective, rental properties were generating a rental yield of 4.1 per cent with tenants paying a median weekly rent of $51
Falcon sits on the frontage of the Indian Ocean just south of Mandurah. It’s shown an uptick in buyer demand during the 12 months with sales volumes increasing 13.5 per cent.
If you have an investment property in Falcon, you were generating a rental yield of 4.2 per cent, and tenants were paying a median rent of $295 a week
Warnbro is an outer suburb south of Perth described as a charming slice of suburbia with a beautiful beach backdrop and plenty of parklands.
During the 12 months reiwa.com data revealed sales activity in Warnbro improved with the volume of sales increasing 8.9 per cent. This increased attention from buyers in the area represents popularity which could mean investment potential.
If you own an investment property in Warnbro, you were generating a rental yield of 5.2 per cent, which is the highest rental return on this list.
Alkimos Beach became the first in Australia to recertify under the Green Building Council of Australia 6 Star Green Star rating for a community. This should open opportunity for investors as buyer demand increases, however it’s too early to see these effects.
Alkimos is only becoming a more and more advanced community, focused on being an innovative and sustainable coastal community of global significance that’s moving towards carbon-neutral living.
reiwa.com data shows the rental yield in Alkimos was 4.3 per cent with the median weekly rent $320 and buyer activity was also up seven per cent.
Waikiki recorded 5.4 per cent growth to sales activity. It’s another good option if you are considering buying an investment property somewhere near the coast.
Waikiki is a southern suburb that associates with Safety Bay and Rockingham. If you have a rental property in Waikiki, the rental yield it’s giving back is 4.7 per cent with tenants paying a median weekly rent of $320
Rockingham with a rental yield of 4.6 per cent and a five per cent increase to the volume of sales. A life by the seaside is a drawcard for residents of Rockingham.
Boasting some of the most beautiful beaches in the state, Rockingham straddles the balance of an urban and suburban lifestyle to great effect.
Its bustling with bars, pubs and family friendly activities with the local foreshore being a hit amongst the locals. Rockingham rounds out the list of Perth’s 10 coastal suburbs with investment potential.
Special Coastal Suburb mentions :
Scarborough, Yanchep, Albany, Geographe Bay, Margaret River, Broome.
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See what’s for sale in Perth.
Editorial extract from REIWA