Yes, the analysis of Perth's property market is included in our pack
The question of 'the best neighborhood to buy a property in Perth' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At BambooRoutes, when we write a blog post or when we update our our property pack for Australia, we want to bring solutions and cover different aims in a clear and organized way.
Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Perth into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
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How is the real estate market in Perth?
The real estate market in Perth, Australia, is a vibrant and dynamic landscape, attracting a diverse range of buyers, including many foreigners, due to its unique blend of qualities.
One of the key strengths of Perth is its distinctive lifestyle and natural attractions that are hard to find elsewhere. It's home to stunning beaches, a relaxed outdoor lifestyle, and the Swan River, offering a blend of natural beauty and urban convenience.
People are drawn to buy in Perth for several reasons.
The city boasts a strong economy with a focus on mining and resources, making it appealing for professionals in these sectors.
Additionally, Perth's educational institutions, including top-ranked universities, attract families and international students, adding to the demand for housing.
The interest from foreign buyers is significant in Perth. This is fueled by the city's reputation for safety, clean environment, and quality of life. The Australian government's policies have also been favorable, encouraging foreign investment in real estate, which adds to the market's dynamism.
Speaking of dynamism, the Perth real estate market is characterized by its resilience and growth. For instance, despite global economic fluctuations, Perth's property values have shown steady growth, with some areas experiencing significant appreciation in value, which is a testament to the market's strength.
A unique aspect of Perth's real estate is the prevalence of coastal properties that offer both luxury and accessibility. Unlike other cities, Perth provides an opportunity to own properties that combine beachfront luxury with proximity to the city center, a rare combination that adds to the allure of its real estate market.
Looking ahead, there are several reasons why properties in Perth will likely continue to gain value.
The city's ongoing infrastructure development, such as improvements in public transport and road networks, will enhance connectivity and make commuting easier.
Perth's commitment to sustainable development, including green spaces and renewable energy projects, is also making it an increasingly attractive place to live.
Moreover, the city's growing reputation as a hub for innovation and technology is expected to attract more businesses and professionals, further driving demand for housing.
Top neighborhoods in Perth to consider for living
Areas in Perth that are budget-friendly
If you're looking to buy property in Perth on a budget, there are a few neighborhoods you might want to consider.
Here is a summary table. Below, we will give more details.
| Neighborhood | Affordability Reasons | Potential Value Increase | Property Types | Average Price per Sqm | Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|---|---|
| Armadale | Distance from CBD, historical perception | Improving infrastructure | Single-family homes, apartments | Lower than Perth's average | Young families, retirees, immigrants | Suburban lifestyle, growing amenities | Distance from city center, past reputation |
| Balga | Historically lower socioeconomic area | Urban renewal projects | Older homes, new developments | Reasonable | New migrants, young families | Community feel, city accessibility | Some areas with social issues |
| Midland | Industrial heritage | Revitalization efforts | Historic homes, new apartments | Attractive | Young professionals, families, retirees | Improving infrastructure, culture | Industrial past challenges |
Armadale
Armadale is known for its affordability, primarily due to its distance from the Perth CBD and historical perception as a less desirable area.
However, this is changing. The area has seen improvements in infrastructure and amenities, making it an increasingly attractive option for first-time homebuyers and investors. Property values in Armadale may rise as these developments continue and the area becomes more connected to the broader Perth region.
The properties available are mostly single-family homes and some apartments in Armadale, with an average price per square meter significantly lower than Perth's average. The area is diverse, with a mix of young families, retirees, and immigrants.
While it offers a peaceful suburban lifestyle and growing amenities, its distance from the city center and past reputation are its main drawbacks.
Balga
Balga is another suburb where property prices are more affordable.
This affordability stems from its history as a lower socioeconomic area, though this is rapidly changing. The potential for property value increase is high due to ongoing urban renewal projects and its proximity to Perth CBD.
You'll find a mix of older homes and new developments in Balga, with prices per square meter being quite reasonable. The population is varied, with many new migrants and young families calling Balga home.
It offers a strong sense of community and accessibility to the city, but some areas still struggle with social issues, which is a concern for potential buyers.
Midland
Midland's affordability can be attributed to its industrial heritage, which traditionally kept property prices low.
However, recent efforts to revitalize the area have sparked interest among buyers and investors. Property values are expected to rise as the suburb continues to transform and improve its image.
The properties in Midland range from historic homes to new apartment complexes, with an attractive price per square meter. The community is diverse, including young professionals, families, and retirees.
Midland's strengths lie in its improving infrastructure and cultural scene, but it still grapples with some of the challenges associated with its industrial past.
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Areas in Perth that are popular and upscale
When looking to buy property in Perth, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.
| Neighborhood | Average Price/sqm | Property Type | Resident Profile | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Dalkeith | High | Large homes, estates | Wealthy families, professionals | Scenic, tranquil, prestigious | Cost, lack of diversity in housing |
| Cottesloe | High | Modern apartments, spacious homes | Families, young professionals | Beachside living, vibrant community | Crowded in summer, high cost of living |
| City Beach | High | Large homes | Affluent families, professionals | Beaches, community feel | Isolation, expensive lifestyle |
Dalkeith
Dalkeith is a prestigious suburb known for its luxurious properties and affluent residents.
It's expensive due to its prime location near the Swan River, offering stunning views and a serene environment. The area predominantly features large homes and estates, catering to wealthy families and professionals.
The average price per square meter in Dalkeith is quite high, reflecting its exclusivity. Residents in Dalkeith are typically well-established professionals or retirees. Strengths include its scenic beauty, tranquil atmosphere, and proximity to central Perth.
However, its high cost and lack of diverse housing options are weaknesses. Despite market fluctuations, Dalkeith is expected to remain a sought-after area due to its status and location.
Cottesloe
Famous for its beaches, Cottesloe is a trendy and expensive neighborhood.
It appeals to both families and young professionals, offering a balanced lifestyle with easy access to both nature and urban amenities. Properties in Cottesloe range from modern apartments to spacious homes.
The high price per square meter in Cottesloe is justified by the lifestyle and the views. Cottesloe's strengths are its vibrant community, beachside living, and excellent facilities.
However, it can get crowded, especially during summer, and the cost of living is high. Its popularity is likely to persist, given its unique beachside charm and continuous development.
City Beach
City Beach is another upscale suburb, known for its spacious properties and beachfront lifestyle.
It's a favorite among affluent families and professionals seeking a relaxed yet sophisticated living environment. The area mostly features large homes with high price tags. The average price per square meter in City Beach is on the higher side, reflecting its desirability.
Residents in City Beach are generally well-off families and individuals. The suburb's strengths are its stunning beaches, community feel, and quality amenities.
However, its isolation from the city center and expensive lifestyle are downsides. City Beach is expected to maintain its hype due to its unique offering of a high-quality beach lifestyle.
Make sure you understand the real estate market in Perth
Don't rush into buying the wrong property in Australia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
Areas in Perth that emerge as new hotspots
Let's explore these emerging neighborhoods in Perth that, according to our local partners and our customers, are getting quite a bit of buzz lately.
| Neighborhood | Affordability | Property Type | Resident Profile | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Maylands | More affordable | Older homes, new apartments | Young professionals, families | Arts scene, city proximity | Development mix, housing variety |
| Bassendean | Affordable | Character homes, new developments | First-time buyers, young families | Community feel, green spaces | Some areas still developing |
| Victoria Park | More affordable | Older homes, apartments | Students, professionals, families | Vibrant dining, cultural diversity | Traffic, developmental mix |
Maylands
Initially a modest suburb, Maylands has evolved into a trendy area attracting a diverse crowd.
Its affordability compared to more established suburbs is a major draw. The neighborhood has seen a surge in cafes, shops, and small businesses, enhancing its appeal. Properties in Maylands range from older homes to new apartments, offering variety at relatively lower prices.
Maylands attracts young professionals and families seeking an urban lifestyle without the hefty price tag. Its strengths include a growing arts scene and proximity to the city.
However, some areas are still developing, and there's a mix of older and newer housing. Prices in Maylands are expected to rise as the suburb continues to develop and gain popularity.
Bassendean
Bassendean's transformation from a quiet suburb to a sought-after area is driven by its affordable housing and community feel.
It's popular among first-time homebuyers and young families. The neighborhood offers a mix of older character homes and newer developments. The prices in Bassendean are more affordable than Perth's traditional hotspots, but they're rising due to increasing demand.
Bassendean is appealing due to its sense of community, green spaces, and improving amenities.
Weaknesses include some areas still needing development and limited high-end housing options. It's likely to continue gaining popularity as it offers a balanced lifestyle at a reasonable cost.
Victoria Park
Known for its eclectic vibe, Victoria Park has become a favorite among those seeking a vibrant urban lifestyle.
It's more affordable than central Perth but offers a similar urban experience. The suburb features a mix of older homes and new apartments, attracting a diverse population including students, young professionals, and families.
Victoria Park's strengths are its lively dining scene, cultural diversity, and proximity to the city. Weaknesses include traffic congestion and a mix of well-developed and underdeveloped areas.
Prices in Victoria Park are expected to increase as the area becomes more popular, but it remains a value-for-money option for many.
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Top neighborhoods in Perth to invest in property
Areas in Perth with a strong rental demand
If you're considering buying real estate in Perth for renting it out, these neighborhoods with high demand for rentals should be considered.
| Neighborhood | Property Type | Average Rent/Week | Rental Yield | Tips | Weaknesses |
|---|---|---|---|---|---|
| Subiaco | Modern Apartments, Townhouses | AUD 500-600 | 4-5% | Near Transport, Lifestyle Amenities | Competitive Market |
| Fremantle | Character Homes, Units | AUD 350-450 | 4.5-5.5% | Water Proximity, Unique Features | Higher Maintenance, Seasonal Fluctuations |
| Scarborough | Modern Units, Family Homes | AUD 600-750 | 3.5-4.5% | Ocean Views, Beach Proximity | Seasonal Demand, Higher Insurance |
Subiaco
In Subiaco, the rental demand is robust due to its vibrant lifestyle and proximity to the CBD, attracting young professionals and small families.
Tenants typically seek modern apartments or townhouses with amenities like secure parking and outdoor spaces. Rental income varies, but a two-bedroom apartment in Subiaco can fetch around AUD 500-600 per week, leading to a rental yield of approximately 4-5%.
To maximize rental income, focus on well-maintained properties near public transport and lifestyle amenities.
However, be aware of the competitive market and occasional over-supply of apartments which can impact rental yields.
Fremantle
Fremantle is popular for its cultural heritage and seaside charm, drawing a mix of tourists, students, and young professionals.
The demand in Fremantle is primarily for character homes and contemporary units, with a one-bedroom unit renting for about AUD 350-450 per week. The expected rental yield in Fremantle is around 4.5-5.5%.
Properties near the water or with unique features, like historical significance, can command higher rents.
The challenge in Fremantle is balancing higher maintenance costs for older properties and seasonal fluctuations in demand.
Scarborough
Scarborough's beachside location makes it a hit with young renters and families.
The demand in Scarborough is for modern units and family homes, with three-bedroom houses renting for approximately AUD 600-750 per week, translating to a rental yield of around 3.5-4.5%.
Properties with ocean views or within walking distance to the beach are particularly sought after.
However, consider the impact of seasonal demand and the potential for higher insurance costs due to the coastal location.
Don't lose money on your property in Perth
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Areas in Perth where property prices might increase in the future
In these areas in in Perth you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.
| Neighborhood | Property Type | Average Price/Night | Tips | Weaknesses |
|---|---|---|---|---|
| Perth CBD | Modern Apartments | AUD 150-250 | High-Quality Finishes, Central Location | Fierce Competition |
| Cottesloe | Beachfront Properties, Cottages | AUD 200-300 | Ocean Views, Easy Beach Access | Seasonal Demand Fluctuations |
| Leederville | Trendy Apartments, Boutique | AUD 120-180 | Unique Design, Near Dining Spots | Noise Levels |
Perth CBD
Perth CBD is a hotspot for short-term rentals due to its business and tourist appeal.
Visitors, business travelers, and holidaymakers seek modern apartments close to attractions and amenities. Properties with luxury amenities like pools and gyms in Perth CBD are in demand. Average nightly rates range in Perth CBD from AUD 150-250.
To enhance rental prospects, focus on properties with high-quality finishes and central locations.
However, competition can be fierce, and pricing needs to be strategic to remain attractive.
Cottesloe
Cottesloe, known for its stunning beaches, attracts tourists and short-term visitors, particularly in summer.
Beachfront properties and cozy cottages in Cottesloe are popular, with nightly rates averaging AUD 200-300. Properties with ocean views or unique charm in Cottesloe can demand higher prices.
Aim for properties with easy beach access and modern amenities.
The main challenge in Cottesloe is the seasonal nature of demand, which can lead to fluctuating occupancy rates.
Leederville
Leederville's cafe culture and nightlife appeal to a younger demographic looking for short stays.
The demand in Leederville is for trendy apartments and boutique accommodations, with average rates of AUD 120-180 per night.
Focus on properties with unique interior designs and proximity to popular dining spots.
However, be aware that the area can be noisy, which might deter some renters.
Make sure you understand the real estate market in Perth
Don't rush into buying the wrong property in Australia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.