Is It Too Late? Top 5 Suburbs for Property Investment in Perth 2024: Affordable High-Growth Areas

The Perth property market has rapidly gained momentum, making it one of the top destinations for real estate investors in Australia. Whether you’re looking for rental income or long-term capital growth, Perth’s diverse suburbs offer affordability, growth potential, and high demand for rental properties. In this article, we’ll explore the best suburbs to invest in Perth for 2024 and highlight affordable investment properties to consider.

Perth’s Booming Property Market in 2024

Perth continues to draw attention as one of Australia’s fastest-growing capital cities. In 2024, investors are flocking to the city due to its affordable property prices, growing population, and strong rental market.

Property Market Growth: Since 2020, Perth’s property values have surged by 56%, making it one of the national leaders in price appreciation(Real Search). This growth is driven by factors such as:

Population Growth: Western Australia’s population grew by 3.3% in 2023(soho.com.au), and this growth trend is expected to continue. The increase in population is primarily due to job opportunities and lifestyle benefits, leading to heightened demand for housing across the Perth metropolitan area.

Rental Market: Another strong factor in Perth’s property market is its rental demand. With a low vacancy rate of 0.6%, rental properties are in high demand. The median weekly rent in Perth is currently $789.97 for houses and $610.25 for units, offering lucrative opportunities for investors focusing on rental income(Real Search).

For more detailed insights into the Perth property market, including price forecasts and trends, explore our Market Insights at RealtyAI.com.au.

Why Perth is Ideal for Property Investment in 2024

While Perth’s property market has shown significant growth, it remains relatively affordable compared to other capital cities, a major advantage for investors. Here’s why Perth is the perfect market for property investment this year:

Affordability: Despite the increase in property prices, Perth still ranks as one of the most affordable cities in Australia. On average, mortgage repayments in Perth consume 36.7% of household income, which is considerably lower than in Sydney or Melbourne(soho.com.au). This affordability makes it easier for investors to enter the market and benefit from capital growth in the years to come.
Infrastructure Growth: Ongoing infrastructure developments across Perth’s suburbs are another key factor driving growth. These include upgrades to transportation networks, schools, and shopping centers, which enhance the attractiveness of certain suburbs. For instance, the Metronet rail project is expected to significantly boost property values in areas like Ellenbrook and Byford, two of the suburbs we will cover in this article(Real Estate Academy Australia).
Population and Economic Growth: Western Australia’s economy is strong, driven by mining and resources industries, which fuel job creation and attract new residents. A growing population means more demand for housing, pushing up property prices and rental yields.

Investors looking for more insights on affordable suburbs and potential growth areas can visit our Finding High Growth Suburbs guide.

Top 5 Affordable Suburbs to Invest in Perth 2024

Now that we’ve set the stage, let’s dive into five of the best affordable suburbs to consider for investment in 2024. Each of these suburbs offers a blend of affordability, rental demand, and long-term growth potential.

1. Ellenbrook

Located northeast of Perth, Ellenbrook is a rapidly growing suburb that offers both affordability and strong capital growth prospects. Ellenbrook’s appeal lies in its master-planned community, which includes schools, shopping centers, and parks, making it highly attractive to families.

Median House Price: $580,000
Annual Growth Rate: 24%
Why Invest?: With its proximity to the Metronet rail project, which is expected to be completed soon, Ellenbrook is poised for continued growth in both property values and rental demand(soho.com.au). Investors can expect both short-term rental income and long-term capital gains.

For more on the importance of infrastructure in real estate investments, check out our Property Market Analysis.

2. Byford

Byford, located to the south of Perth, has become increasingly popular for its family-friendly environment and expanding infrastructure. With new schools, parks, and transport links, Byford is emerging as a key growth suburb.

Median House Price: $605,000
Annual Growth Rate: 26%
Why Invest?: Byford’s affordability and future growth potential make it ideal for investors. As more infrastructure projects, like the new train line, are completed, property values in Byford are expected to rise sharply(Real Estate Academy Australia).

Explore our Investment Properties page for more tips on finding the right investment in Byford.

3. Baldivis

Baldivis continues to attract investors and residents alike, thanks to its lifestyle appeal, excellent schools, and proximity to major shopping centers. Located just a short drive from Perth’s CBD, Baldivis offers the perfect balance of convenience and affordability.

Median House Price: $611,000
Annual Growth Rate: 23%
Why Invest?: Baldivis combines a high-quality suburban lifestyle with strong rental demand. It’s particularly appealing to families and young professionals, offering great long-term investment potential(Authority Ventures)(Real Estate Academy Australia).

Check out our Smart Investing Australia page for more smart investment opportunities like Baldivis.

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4. Rockingham

If you’re looking for beachside investment properties that won’t break the bank, Rockingham is a fantastic option. Located 40 minutes south of Perth, Rockingham is known for its coastal lifestyle and has become a hotspot for both buyers and renters.

Median House Price: $580,000
Gross Rental Yield: 4.9%
Why Invest?: Rockingham offers strong rental yields due to its popularity with both locals and tourists. With easy access to the beach, shopping centers, and schools, it’s an ideal suburb for investors seeking a balance between rental income and long-term capital growth(soho.com.au)(Real Estate Academy Australia).

For insights into maximizing rental yields in locations like Rockingham, explore our guide on Maximizing Rental Yield in 2024.

5. Quinns Rocks

Located in the northern coastal corridor, Quinns Rocks offers an affordable entry point into Perth’s thriving coastal property market. Its proximity to the beach and limited housing stock make it a strong candidate for future growth.

Median House Price: $701,000
Gross Rental Yield: 4.6%
Why Invest?: With beautiful beaches and a growing demand for housing, Quinns Rocks is poised for long-term growth. Investors can expect steady rental demand, making it an attractive option for those looking to generate cash flow(Authority Ventures)(Real Estate Academy Australia).

For more on capital growth opportunities, visit our article on Australia’s Best Investment Locations for 2024.

Factors to Consider When Choosing an Investment Suburb

Now that you know the top suburbs, it’s essential to understand what factors make a suburb a great investment opportunity. Here are some key considerations for investors when evaluating which Perth suburb to invest in:

1. Rental Yields

Rental yield is one of the most important metrics for investors, especially those looking for cash flow. Suburbs with high rental demand, such as Rockingham and Quinns Rocks, often provide higher yields, making them ideal for investors focused on steady income.

Rockingham: With a rental yield of 4.9%, this coastal suburb offers one of the best returns in Perth.
Quinns Rocks: Similarly, with a rental yield of 4.6%, it’s a solid option for investors aiming for a mix of cash flow and growth.

For more tips on improving rental yields, check out our guide on navigating the 2024 property market.

2. Infrastructure Developments

Suburbs undergoing infrastructure upgrades are often prime spots for future growth. Transport links, new schools, shopping centres, and parks can significantly impact property values, making these areas more attractive to buyers and renters.

Ellenbrook and Byford: These suburbs benefit from the Metronet rail project, which will improve connectivity to the city, boosting property values(Real Estate Academy Australia).
Armadale: Another suburb to watch, Armadale is seeing increased demand due to transport improvements and retail developments.

Investors can learn more about the effects of infrastructure on property values in our article on Infrastructure-Driven Growth.

3. Capital Growth Potential

While rental yield is critical, capital growth potential can significantly increase the value of your investment over time. Suburbs like Ellenbrook and Baldivis have experienced double-digit growth in recent years, and their affordability means they’re likely to continue seeing strong demand.

Ellenbrook: With a 24% growth rate in 2023, it’s one of the top-performing suburbs in Perth.
Byford: With a 26% growth rate, Byford’s rapid development makes it a strong contender for capital appreciation(Real Estate Academy Australia).

For more tips on finding suburbs with strong capital growth potential, visit our Investment Hotspots page.

How to Find Affordable Investment Properties in Perth

Finding the right property at the right price can be a challenge, especially in a competitive market like Perth. Here are some strategies to help you secure an affordable investment property:

1. Use Online Tools and Platforms

Platforms like RealtyAI.com.au provide valuable insights into the Perth property market, including current listings, market trends, and investment opportunities. These tools can help you narrow down your search and identify properties that fit your budget and investment goals.

2. Engage a Buyer’s Agent

If you’re new to investing or unsure about where to start, engaging a buyer’s agent can provide you with expert advice and help you negotiate the best possible deal. Buyer’s agents often have access to off-market properties and can guide you through the purchasing process. For more information, check out our Choosing a Buyer’s Agent guide.

3. Financing Options

In the current economic climate, investors should approach financing with caution. While there has been some stabilization in interest rates, the future remains uncertain, and further rate hikes could significantly impact mortgage repayments and overall investment profitability.

Rather than relying on the assumption that interest rates will remain low, it’s crucial for investors to plan and budget for potential increases. Rising rates can place significant pressure on cash flow, especially for those with variable-rate loans.

Here are some key strategies to mitigate the risk of rate hikes:

Lock in Fixed Rates Early: Securing a fixed mortgage rate now can help protect against future increases.
Work with a Mortgage Broker: Professionals can help navigate the current lending environment and find the best possible terms for your investment.
Reassess Your Budget: Plan for worst-case scenarios, ensuring your investment remains profitable even if rates increase by 1% or more.

For more tips on navigating fluctuating interest rates, check out our guide on interest rates for Australian investors.

Conclusion: Why Perth Should Be Your Next Investment Move in 2024

In summary, Perth’s property market offers investors the ideal mix of affordability, rental yields, and long-term capital growth. Suburbs like Ellenbrook, Byford, Baldivis, Rockingham, and Quinns Rocks stand out as the top picks for 2024, offering strong investment potential across multiple metrics.

If you’re ready to explore Perth’s best investment opportunities, visit RealtyAI today for personalized advice and access to Australia’s top investment properties.

Not Financial advice