What is the average rental yield in Perth?

Last updated on August 26, 2025

Authored by the expert who managed and guided the team behind the Australia Property Pack

Yes, the analysis of Perth's property market is included in our pack

Perth's rental market is currently delivering some of Australia's strongest yields. Units offer around 6.2% gross rental yields while houses provide approximately 4.5%, making Perth significantly more attractive than Sydney or Melbourne for rental returns.

The Perth property market has experienced rapid price growth over recent years, with house prices rising 63% over five years and unit prices up 39%. Despite this growth, rental yields remain competitive due to strong tenant demand and low vacancy rates of just 2.5% across the metro area.

If you want to go deeper, you can check our pack of documents related to the real estate market in Australia, based on reliable facts and data, not opinions or rumors.

Quick Summary:

Perth rental yields range from 4.5% for houses to 6.2% for units, with some high-yield suburbs like Orelia delivering up to 7.9%.

Short-term rentals in prime locations can achieve 7.2-8.5% gross yields, outperforming traditional long-term rental strategies.

Property Type	Median Price	Median Weekly Rent	Gross Yield	Top Yielding Suburbs
Houses	$848,980	$670	4.5%	Leda (5.9%), Midvale (5.7%)
Units/Apartments	$607,022	$640	6.2%	Orelia (7.9%), Glendalough (6.8%)
3-Bed Duplexes	$665,000	$620	4.8%	Various outer suburbs
4-Bed Houses	$843,000	$700	4.3%	Growth corridor suburbs
Short-term Rentals	Variable	$2,649/month	7.2-8.5%	CBD, Northbridge, Fremantle
2-Bed Duplexes	$580,000	$520	4.4%	Middle-ring suburbs
1-Bed Units	$450,000	$480	5.5%	Inner-city locations

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Perth. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Australian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Perth, Sydney, and Melbourne. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the typical rental yields right now across Perth?

As of September 2025, Perth rental yields vary significantly by property type, with units consistently outperforming houses.

Houses across Perth are currently delivering gross rental yields of around 4.5%, which represents a slight decrease from 4.9% twelve months ago. This decline reflects the rapid capital growth Perth has experienced, with house prices rising faster than rental increases.

Units and apartments are generating stronger yields at approximately 6.2%, down from 6.5% last year but still well above the national average for major cities. Some high-performing unit submarkets are achieving yields as high as 7.9% in suburbs like Orelia.

Townhouses and duplexes sit in the middle range, with 3-bedroom duplexes averaging 4.8% yields and 2-bedroom duplexes around 4.4%. These property types offer a balanced approach between the higher yields of units and the capital growth potential of houses.

It's something we develop in our Australia property pack.

How do yields differ between apartments, townhouses, and houses?

The yield hierarchy in Perth clearly favors smaller, more affordable property types over larger family homes.

Apartments and units lead the yield rankings at 6.2% gross returns, driven by their lower purchase prices relative to rental income. The median unit price of $607,022 combined with median weekly rents of $640 creates this attractive yield scenario for investors seeking immediate cash flow.

Townhouses and duplexes occupy the middle ground with yields ranging from 4.4% to 4.8% depending on size and location. Three-bedroom duplexes at $665,000 median price with $620 weekly rent deliver 4.8% yields, while smaller 2-bedroom versions achieve 4.4%.

Houses generate the lowest yields at 4.5% overall, though this varies by size. Four-bedroom houses particularly struggle with yields of just 4.3% due to their higher purchase prices of $843,000 versus weekly rents of $700. Three-bedroom houses perform slightly better at 4.7% yields.

This yield differential reflects the investment strategy trade-off: units provide better immediate returns while houses typically offer superior long-term capital growth potential.

Which suburbs or areas in Perth have the strongest rental yields today?

Perth's highest-yielding suburbs are concentrated in specific pockets that combine affordable entry prices with strong rental demand.

Suburb	Property Type	Gross Yield	Median Weekly Rent	Investment Appeal
Orelia	Units	7.9%	$456	Highest yields in Perth
Glendalough	Units	6.8%	$520	Close to CBD, strong demand
Leda	Houses	5.9%	$588	Best house yields available
Ascot	Units	6.7%	$580	Prestigious location
Midvale	Houses	5.7%	$610	Growth corridor potential
Northbridge	Units	6.6%	$650	Entertainment precinct
Calista	Houses	5.6%	$595	Affordable family housing

How much do property size and surface area affect rental returns?

Property size has an inverse relationship with rental yields in Perth, with smaller properties generally delivering superior returns per dollar invested.

Smaller units and one-bedroom apartments consistently outperform larger properties due to their lower purchase prices and relatively stable rental income. These properties often achieve yields between 5.5% and 7.9% because rental demand from singles, couples, and young professionals remains strong.

Medium-sized properties like 2-3 bedroom units and townhouses provide balanced returns around 4.4% to 6.2%. These properties attract a broader tenant base including small families and share accommodation arrangements, maintaining steady rental demand.

Larger properties, particularly 4+ bedroom houses, typically deliver the lowest yields at 3.6% to 4.3%. While these properties command higher absolute rents, their significantly higher purchase prices reduce percentage returns. However, they often compensate with stronger capital growth over time.

The surface area effect is most pronounced in the premium end of the market, where additional bedrooms and living spaces increase purchase prices faster than they increase rental income potential.

What is the average purchase price including fees and taxes for different property types?

Perth property purchase costs extend well beyond the advertised sale price, with buyers needing to budget for substantial additional expenses.

The median house price across Perth sits at approximately $849,000 to $870,000 as of September 2025, while units average $607,000 to $635,000. Three-bedroom duplexes typically cost around $665,000, and four-bedroom houses average $843,000.

Additional costs add 3-5% to the purchase price and include stamp duty, legal fees, building inspections, and settlement costs. For a typical $850,000 house purchase, buyers should budget $25,000 to $40,000 in extra expenses.

Stamp duty represents the largest additional cost, calculated on a sliding scale based on property value. Legal fees typically range from $1,500 to $3,000, while building and pest inspections cost $400 to $800 combined.

Foreign buyers face additional costs including Foreign Investment Review Board application fees and potential foreign buyer duties, which can add several thousand dollars to the total purchase cost.

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What are the main ongoing costs such as property management, maintenance, taxes, and mortgage repayments?

Ongoing property ownership costs in Perth can significantly impact net rental yields, requiring careful budgeting for successful investment returns.

Property management fees typically range from 8% to 9.5% of rental income annually, with most agencies charging around 8.8% for ongoing management. Letting fees add approximately two weeks' rent plus GST each time a new tenant is secured, which occurs roughly every 12-18 months.

Maintenance costs vary dramatically by property age and condition, with older homes requiring $1,500 to $3,000+ annually for routine repairs and upkeep. Newer properties may need only $500 to $1,500 per year initially, but this increases as the property ages.

Council rates and land tax represent fixed annual costs ranging from $1,500 to $3,500 depending on property value and location. Water rates and building insurance add another $800 to $1,500 annually for most properties.

Mortgage repayments currently range from $900 to $1,400 weekly for median-priced homes at 5-7% interest rates, though these costs depend entirely on loan amount, deposit size, and interest rate fluctuations.

What is the breakdown of vacancy rates across different property types and areas?

Perth's vacancy rates in September 2025 reflect a balanced rental market with tight conditions in popular areas.

The overall Perth vacancy rate sits at 2.5%, indicating a balanced market where neither landlords nor tenants have overwhelming negotiating power. This represents a healthy equilibrium that supports steady rental growth without excessive tenant stress.

Units and apartments in popular inner suburbs often experience vacancy rates below 1%, particularly in areas like Perth CBD, Northbridge, East Perth, and Mount Lawley. These locations benefit from strong demand from young professionals and students.

Outer suburban areas, particularly those with high concentrations of new builds and investor-owned properties, may experience vacancy rates exceeding 3%. These areas often struggle with oversupply and longer marketing periods for rental properties.

The tightest rental markets exist in established inner and middle-ring suburbs where limited new supply meets consistent demand from diverse tenant demographics. Areas like Glendalough, Ascot, and established parts of Fremantle maintain very low vacancy rates.

How do rental yields compare for short-term versus long-term rental strategies?

Short-term rental strategies significantly outperform traditional long-term leasing in Perth's current market conditions.

Short-term rentals through platforms like Airbnb generate gross yields of 7.2% to 8.5% in prime locations, substantially higher than long-term rental yields of 4.3% to 6.2%. Central Perth properties average $2,649 monthly in short-term rental income, with top-performing properties earning up to $5,037 monthly.

The median occupancy rate for Perth short-term rentals sits around 65%, meaning properties are booked approximately 20 days per month. This leaves room for optimization through better pricing, marketing, and guest experience management.

However, short-term rentals require active management, higher setup costs for furnishing and styling, and carry greater vacancy risk during low-demand periods. Long-term rentals provide more predictable income streams with lower management requirements.

The best short-term rental performance occurs in CBD locations, Northbridge entertainment district, Fremantle historic areas, and Scarborough beachside properties where tourist and business traveler demand remains consistently strong.

It's something we develop in our Australia property pack.

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Can you give example rental prices for different kinds of properties in Perth?

Current Perth rental prices reflect strong demand across all property types, with significant variations by location and property features.

Houses command median weekly rents of $670 to $826 across Perth, with three-bedroom houses averaging $650 per week and four-bedroom houses reaching $700 per week. Premium locations and modern homes can command $800 to $1,200+ weekly.

Units and apartments rent for $640 to $646 per week on average, though this varies dramatically by size and location. One-bedroom units in inner areas rent for $400 to $550 weekly, while two-bedroom units achieve $500 to $650 weekly.

High-yield suburbs demonstrate the range of rental pricing: Orelia units rent for around $456 per week, while prestigious Ascot units command $580 weekly. House rentals in Leda average $588 weekly, while Midvale houses achieve $610 weekly.

Short-term rental properties in central Perth average $378 per night or approximately $2,649 monthly, though top-performing properties can achieve $720+ per night during peak periods and events.

What are the typical renter profiles in Perth right now?

Perth's rental market serves diverse tenant demographics, each with distinct housing preferences and rental capacity.

Young professionals represent a major tenant segment, particularly in inner-city units and apartments. This group typically seeks modern, well-located properties close to employment centers and entertainment precincts, willing to pay premium rents for convenience and lifestyle amenities.

Families with children dominate the house rental market, preferring 3-4 bedroom properties in established suburbs with good schools and family facilities. These tenants often establish longer tenancies and maintain properties well, making them desirable for landlords.

Students and young adults frequently share accommodation in both houses and larger units, particularly near universities and TAFE campuses. This demographic supports strong rental demand in areas like Bentley, Murdoch, and suburbs surrounding Curtin University.

Short-term rental markets attract business travelers, tourists, and temporary workers, especially in CBD, Northbridge, Fremantle, and Scarborough locations. This segment drives higher rental rates but requires more active property management.

How have rents and yields changed compared to one year ago and five years ago?

Perth rental markets have experienced strong growth over recent years, though yield improvements have been tempered by rapid capital appreciation.

Over the past twelve months, house rents have increased 4.6% year-on-year while unit rents have risen 7.7%. This rental growth reflects Perth's tight vacancy conditions and strong population growth driving demand for accommodation.

However, rental yields have slightly decreased compared to last year, with house yields dropping from 4.9% to 4.5% and unit yields declining from 6.5% to 6.2%. This yield compression occurs because property prices have risen faster than rental increases.

The five-year trend shows dramatic capital growth, with median house prices increasing 63% and unit prices rising 39%. This substantial appreciation has created significant wealth for property owners but made new investment entry more expensive.

Rental prices five years ago were substantially lower, with many current $650 weekly house rentals previously achieving $450-500 weekly. This 30-40% rental growth over five years demonstrates Perth's strong fundamentals but also highlights affordability challenges for tenants.

What are the smartest investment choices in Perth today, and how do yields compare with other major Australian cities?

Perth offers Australia's most attractive rental yields among major capital cities, creating compelling investment opportunities for yield-focused investors.

City	Average Gross Yield	House Yields	Unit Yields	Investment Ranking
Perth	4.3-6.2%	4.5%	6.2%	Excellent
Brisbane	4.4%	4.2%	4.8%	Good
Melbourne	3.2%	3.0%	3.8%	Poor
Sydney	2.8%	2.5%	3.2%	Poor
Adelaide	4.8%	4.6%	5.2%	Good
Darwin	6.8%	6.5%	7.2%	High Risk/High Return
Hobart	5.1%	4.8%	5.6%	Moderate

The smartest Perth investment strategies focus on high-yielding units in suburbs like Orelia, Glendalough, and Mount Lawley for immediate cash flow. Houses in affordable growth areas like Leda, Midvale, and Hilbert offer balanced yield and capital growth potential.

Short-term rental properties in popular districts represent the highest-return strategy if high occupancy rates can be maintained through professional management and strategic marketing.

It's something we develop in our Australia property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Perth's rental market presents exceptional opportunities for property investors seeking strong yields and capital growth potential in Australia's most affordable major capital city.

With units delivering 6.2% yields and houses providing 4.5% returns, Perth significantly outperforms Sydney and Melbourne while offering more affordable entry prices and diverse investment strategies from traditional rentals to short-term accommodation.