The Financial Review, citing data from CoreLogic, recently reported for residential investors, Perth provides outstanding yields compared to other major Australian urban markets.
According to the data, Darwin was the only market to outperform Perth in terms of gross rental yields, with 4.5% for houses and 6.0% for apartments as of December 2022.
This is in contrast to the low yields seen in Melbourne and Sydney, which were at 2.8%.
In addition to high yields, Perth also offers investors strong asset quality, potential for growth in asset values, and occupancy security.
These factors are supported by a stable economic background, affordable housing, and solid tenancy demand.
With interest rates on the rise and buying capacity compressed, the combination of yield, affordability, and asset quality in Perth makes it an attractive offering for investors at this time.
Mrs Thorpe recommends, for the best results, investors look at houses as opposed to apartments when looking to invest in the Perth property market.
“There is a large supply of apartments currently available in Perth and its surrounding suburbs. For example, in Perth alone there are currently 96 apartments available, 75 in East Perth, 32 in West Perth and 28 in South Perth,” she said.
“By comparison, in the suburb of Warwick there are just three properties in total, while Caversham and Bull Creek have four each.
“Looking at simple supply and demand, apartments are more likely to stay vacant for longer leading to lower rental returns.”
To be perfectly positioned to maximise your rental returns please feel free to reach out and ask Emma.
Emma Thorpe
0413 708 114
ethorpe@realmark.com.au