Quick Answer
Perth remains one of Australia’s strongest-performing property markets for investors. Most residential properties in Perth fall within a gross yield range of 4% to 6%, with houses clustering toward the lower end around 4.3% and units pushing higher at roughly 5.9%. Bamboo Routes These returns still significantly outperform Sydney and Melbourne, where yields often sit below 3.5%.
What Are the Current Average Rental Yields in Perth?
Units are attracting an average rental yield of around 5.5%, compared to approximately 4.0% for houses. API Magazine Among the top-performing suburbs, the top 10 suburbs for houses all recorded yields over 5.0%, while the top 10 for units all achieved yields over 6.5%. REIWA
Perth’s gross yields have barely changed over the past 12 months, going from 4.4% to 4.3% — still above the national gross yield, which has remained at about 3.7%. HERE Property
| Property Type | Average Gross Yield | Top Suburb Yield Range |
|---|---|---|
| Houses | ~4.0–4.3% | 5.2%–5.9% (top 10) |
| Units | ~5.5–5.9% | 6.8%–8.0% (top 10) |
What Are the Current Average Property Prices in Perth?
Perth’s prices have risen sharply, though the city remains more accessible than most other capitals. Perth’s median sale prices for houses ($840,000) and units ($590,000) were at record highs at the end of 2025. REIWA More recent data from PropTrack places the median house price even higher, with Perth house prices rising 16.9% in 2025 to a median of $1,034,000, with units up 19.3% to $660,000. Australianpropertyupdate
Strong demand remains in the sub-$800,000 bracket, particularly from interstate investors seeking high-yield opportunities. Browse current Perth houses for sale or filter for Perth properties under $500,000 to explore current listings.
What Salary Is Needed to Afford an Investment Property in Perth?
To comfortably service a median-priced house in Perth, an individual or household generally needs a gross annual income of $150,000 to $180,000, assuming a 20% deposit and standard bank serviceability buffers. For units or lower-priced outer suburbs, an income of $100,000 to $120,000 may be sufficient. Investors should also budget for property management fees (typically 7–10% of rent), council rates, insurance, and maintenance.
For a deeper look at how Perth prices may move, see our Perth property market predictions for the next 5 years.
Which Suburbs Have the Highest Rental Yields in Perth?
Cannington topped the list for rental yield for houses in 2025, with a yield of 5.3%, based on its median house sale price of $685,500 and a median weekly rent of $700. Spearwood retained the top position for units, with a yield of 7.3% based on a median unit sale price of $464,000 and a median weekly rent of $650. REIWA
Other strong-yield areas include:
- Armadale & Camillo — Lower entry prices sustain yields above 5% for houses
- Gosnells & Kwinana region (Medina, Parmelia) — High family demand with solid detached dwelling yields
- Perth CBD — Units can achieve 6–8% for both short-term and long-term rentals
- Butler — Northern coastal suburb popular with young families and commuters
For a curated list, see our guide to the best suburbs in Perth and Perth’s future growth suburbs.
Is the Perth Property Market Overpriced?
While Perth has seen record-breaking price growth, the city’s property prices have moved upwards independently of mineral price movements over the past five years, suggesting other factors are now driving the market API Magazine — namely population growth, infrastructure investment, and constrained supply. The price-to-income ratio remains lower than Sydney or Brisbane. However, value in premium inner-city suburbs is increasingly harder to find.
For a data-led view of where prices are heading, see our Perth house price forecast.
Should First Home Buyers Invest in Perth’s Rental Market?
“Rentvesting” — investing in Perth while renting where you live — can be a strategic move given current conditions.
Pros:
- Strong yields (particularly in units) can offset a significant portion of mortgage repayments
- Perth is currently in a sustained upswing, with capital growth building equity for future purchases
Cons:
- Investing first may disqualify you from First Home Owner Grants (FHOG) or stamp duty concessions that require owner-occupancy
- Being a landlord involves management responsibilities that may be challenging while also saving for a primary residence
Key Factors Driving Rental Returns in Western Australia
- Vacancy rates: The Perth vacancy rate remained at or above 2% for most of 2025 REIWA, an improvement from the extreme lows of prior years — though it retightened to 0.6% in January 2026 OpenAgent, keeping conditions firmly in landlords’ favour in early 2026
- Net migration: Both international and interstate migration to WA remain elevated, driven by a strong state economy and job market
- Economic diversification: The market is no longer solely resource-dependent, with tourism, agribusiness, and logistics all contributing — reducing the classic boom-bust cycle
- Supply constraints: Labour shortages and high material costs continue to slow new home completions, keeping rental demand high
- Interest rates: As rates stabilise and potential cuts approach, investor activity is likely to increase further, but insufficient stock continues to underpin rent growth