Looking to grow your property portfolio in 2025? Perth is shaping up to be one of Australia’s most promising real estate markets, with affordable entry points, solid rental returns, and infrastructure-driven growth making it a standout for smart investors.
In this guide, we’ll break down the best suburbs to invest in Perth, not just based on past performance, but on forward-looking data tied to infrastructure, demand, and finance opportunities. Whether you’re a first-time investor in Perth or expanding an existing portfolio, knowing where to buy (and why) can make all the difference.
At Stryve Finance, we help investors like you not only identify the right locations but also structure the right mortgage for investment property strategies to maximise returns and reduce risk.
Market Overview for Property Investors
The Perth property market in 2025 is gaining national attention for good reason. While Sydney and Melbourne grapple with affordability ceilings, Perth offers a rare mix of value, growth potential, and rental demand that continues to attract investors across Australia.
Here are the key reasons Perth investment suburbs are on the radar in 2025:
Affordability Advantage
Perth remains one of the most affordable capital cities in Australia. With median house prices well below those in the eastern states, investors can secure better properties for less, with room for growth.
Strong Population Growth
Driven by interstate migration and overseas arrivals, demand for housing, both to buy and rent, continues to rise. Suburbs within new transport corridors are especially in demand.
Infrastructure Projects Driving Capital Growth
Major projects like Metronet rail expansions (e.g., Yanchep and Byford) are reshaping suburban connectivity, making once-overlooked areas more desirable. This is fueling interest in Perth's best-performing suburbs.
Tight Rental Market
Rental vacancies in Perth are near record lows. For investors, this means greater tenant competition, rising rents, and greater income security.
In short, the Perth property market in 2025 offers the rare combination of yield, growth, and affordability, making it an ideal location for both new and experienced investors.
Top 7 Suburbs to Invest in Perth Right Now
As we explore Perth’s best-performing and most promising investment areas, we’ve selected a diverse mix of locations suited to different investment goals, from high-rental-yield suburbs to long-term capital-growth plays.
| Suburb | Median House Price (AUD) | Rental Yield (%) |
|---|---|---|
| Baldivis | $540,000 | 5.6% |
| Yanchep | $510,000 | 5.3% |
| Byford | $525,000 | 5.4% |
| Piara Waters | $680,000 | 5.0% |
| Alkimos | $580,000 | 5.1% |
| Willagee | $850,000 | 4.1% |
| Rockingham | $490,000 | 6.0% |
Let’s start with the first suburb:
1. Baldivis
Baldivis has become a standout among Perth’s best suburbs to invest in, thanks to its combination of affordability, family-friendly appeal, and rising rental demand. Located in Perth’s southern corridor, it offers newer housing estates, schools, parks, and a growing population of young families, all signs of a thriving long-term market.
- Median House Price: ~$540,000
- Rental Yield Perth (Baldivis): ~5.6%
- Vacancy Rate: Low, due to strong tenant demand
- Growth Factors: Local shopping centres, proximity to Kwinana Freeway, new infrastructure plans
For a first-time investor in Perth, Baldivis offers a comfortable entry price and relatively low competition. Combined with high tenant demand, this makes it an excellent option for buyers aiming to start strong.
Stryve Finance Insight: Baldivis is a smart location for investors seeking a high-yield property paired with a low-deposit mortgage for investment property. Options like interest-only loans or offset accounts can help maximise cash flow here.
2. Yanchep
Yanchep has emerged as one of Perth’s suburbs with the best capital growth, largely thanks to massive infrastructure investments and its coastal lifestyle appeal. Located about 50km north of the CBD, Yanchep was once considered a distant commuter suburb, but the 2024 completion of the Metronet Yanchep Rail Extension has completely changed that.
- Median House Price: ~$510,000
- Rental Yield Perth (Yanchep): ~5.3%
- Vacancy Rate: Very low (below 1%)
- Growth Drivers: New rail station, ocean views, schools, retail precincts
This suburb blends affordability with long-term potential, making it ideal for investors who want to enter early in a growth cycle. As amenities expand and demand increases, capital appreciation is highly likely over the next 5–10 years.
Tip
For properties in suburbs like Yanchep, a long-term strategy works best. We often recommend interest-only mortgages for investment property buyers here, especially when paired with offset accounts to preserve cash flow in the early years of holding.
3. Byford
Byford, situated 33km south-east of Perth CBD, is rapidly transforming from a rural township into one of the most exciting Perth investment suburbs. Thanks to the Metronet rail extension underway, connecting Byford directly to the Armadale Line, investor interest is surging.
- Median House Price: ~$525,000
- Rental Yield: ~5.4%
- Key Demographic: Young families and first-home buyers
- Why It’s Growing: New schools, modern estates, transport upgrades, strong population growth
Byford’s combination of price accessibility and lifestyle appeal makes it one of the best entry points for a first-time investor in Perth. The suburb has seen consistent interest from owner-occupiers and renters alike, helping underpin strong occupancy and value stability.
Tip
Many of our investor clients use equity from existing properties to secure a foothold in Byford. This is a great location to consider split-loan structures or even construction loans if you’re building in one of the new estates.
4. Piara Waters
Piara Waters is a modern, masterplanned suburb located in Perth’s south-eastern corridor. With its abundance of new schools, parks, shopping precincts and quality housing, it has fast become one of the most desirable areas for families and a hotspot for investors looking to tap into high-quality tenants and low vacancy rates.
- Median House Price: ~$680,000
- Rental Yield: ~5.0%
- Tenant Profile: Dual-income families seeking larger homes in school catchments
- Capital Growth Driver: Land scarcity, high owner-occupier appeal, ongoing demand for quality homes
As rental demand continues to surge in this area, yields remain competitive despite higher purchase prices. Piara Waters is also seeing solid year-on-year growth, making it one of the suburbs with best capital growth in Perth over the past 24 months.
Stryve Finance Insight
For higher-priced suburbs like Piara Waters, it’s important to structure your mortgage for investment property carefully. Many of our clients use equity release from other properties or pair it with a variable loan with an offset to manage cash flow while still benefiting from capital growth.
5. Alkimos
Alkimos, a beachside suburb approximately 40km north of the Perth CBD, is one of the most active Perth investment suburbs due to its rapid development and lifestyle-driven appeal. Part of the government’s North-West growth corridor plan, Alkimos has been purpose-built for families and young professionals.
- Median House Price: ~$580,000
- Rental Yield: ~5.1%
- Vacancy Rate: Very low (often under 1%)
- Why It’s Hot: Coastal proximity, new schools and shopping hubs, direct rail access via Metronet
The suburb’s popularity among renters and steady development pipeline make it one of the best suburbs to invest in Perth for those seeking a balance of rental income and long-term growth. Proximity to the beach is also a significant drawcard for both tenants and future buyers.
Tip
Because Alkimos is in a growth corridor, you may be eligible for flexible loan options, including construction finance or first-time investor packages. For established homes, we often recommend a P&I loan with a 100% offset to maximise control over repayments and interest.
6. Willagee
Located just 15 minutes south of Perth CBD and close to Fremantle, Willagee is one of the most promising suburbs with best capital growth in Perth, thanks to its ongoing gentrification, large block sizes, and proximity to major urban centres.
Previously overlooked, Willagee is now attracting developers, renovators, and investors who recognise its long-term upside. It’s a classic “buy before it booms” suburb.
- Median House Price: ~$850,000
- Rental Yield: ~4.1%
- What’s Driving Growth: Urban renewal, increasing owner-occupier demand, proximity to Fremantle and Murdoch University
Although the rental yield here is lower than in outer suburbs, the capital appreciation potential makes Willagee an excellent fit for investors focused on long-term wealth creation.
Tip
For higher-priced inner-city locations like Willagee, we often structure loans for clients using negative gearing strategies and recommend pairing it with a variable-rate loan and an offset account to maintain repayment flexibility while optimising tax efficiency.
7. Rockingham
Rockingham has long attracted attention for its strong rental returns, beachside lifestyle, and affordability. Located about 47km south-west of Perth, it remains a high-yielding suburb, but not without its caveats.
While some parts of Rockingham have historically seen soft capital growth, rental demand has remained robust due to its coastal appeal and proximity to naval bases and industrial hubs.
- Median House Price: ~$490,000
- Rental Yield Perth (Rockingham): ~6.0%
- Tenant Demand: High, especially for units and low-maintenance homes
- Risk Factors: Variable capital growth, patchy suburb performance, oversupply in some pockets
For yield-focused investors, Rockingham can be a valuable addition to a diversified portfolio. However, it’s best approached with a clear strategy and financing support.
Tip
For suburbs with strong rental returns but slower growth, we often recommend interest-only investment loans to maximise cash flow early. These can be ideal for investors aiming to build serviceability for future purchases.
Suburbs to Be Cautious Of (And Why)
While many Perth suburbs offer attractive returns, not all are created equal. Some locations provide tempting yields but come with risks that investors, especially those new to the market, should carefully consider.
Here are three Perth investment suburbs that deserve a closer look before committing capital:
Armadale
- Rental Yield: 6–7% (on paper)
- Median Price: ~$410,000
- Why Be Cautious: While Armadale offers some of the highest rental yields in Perth, it also has higher crime rates, tenant turnover, and areas of social disadvantage.
- Mortgage Insight: Lenders may assess this area conservatively, and some limit loan-to-value ratios (LVRs).
Midland
- Rental Yield: ~5.3%
- What to Watch: While Midland has seen some rejuvenation through infrastructure and retail development, oversupply of units and inconsistent capital growth patterns may limit returns.
Tip
Investors considering Midland should run a cash flow sensitivity test, especially if planning to use interest-only financing.
Clarkson
- Rental Yield: ~5.5%
- Red Flags: Although close to the Joondalup area, Clarkson has yet to see the same level of uplift. Properties can sit on the market longer, and future growth remains uncertain.
- Mortgage Watch: Not all properties in this area will pass lenders' valuation criteria without scrutiny. Make sure to get pre-approval before making an offer.
Stryve Finance Insight
Suburbs with high yields and low price tags can seem attractive, especially for new investors. However, these areas often come with cash flow traps, maintenance costs, or longer vacancies. This is where having a finance partner to run scenarios, cash flow models, and loan strategies becomes crucial.
FAQs About Investing in Perth Property
Is Perth a good place to invest in 2025?
Yes, the Perth property market in 2025 is one of the strongest in Australia. It offers a rare combination of affordability, high rental yields, and long-term capital growth, especially in emerging suburbs like Yanchep, Baldivis, and Alkimos. Investors are also taking advantage of infrastructure-led growth in corridors like Byford and Piara Waters.
Which suburbs in Perth have the best rental yield?
Currently, suburbs like Rockingham, Baldivis, and Armadale offer some of the highest rental yields in Perth, ranging from 5.5% to 6.5%. However, high yields can come with higher risk, so it’s important to consider vacancy rates, tenant quality, and long-term demand.
What is the best suburb in Perth for first-time investors?
Baldivis, Byford, and Alkimos are ideal for a first-time investor in Perth. They offer a good balance between price, yield, and future growth, plus properties in these areas often qualify for first-home or low-deposit lending programs.
What type of mortgage is best for an investment property?
The best mortgage for investment property depends on your goals:
- Interest-only loans: Good for cash flow and early-stage investors
- Principal & Interest loans: Better for long-term equity growth
- Split loans: Offer a mix of flexibility and security
- Stryve Finance can help tailor your loan structure to suit your investment strategy and suburb profile.
Can I use equity from my home to invest in Perth?
Absolutely. Many Perth investors use equity from an existing home to fund their next purchase, often without needing a cash deposit. This is a popular way to invest in suburbs with strong upside, like Willagee or Piara Waters.
Is Now the Right Time to Invest in Perth?
Absolutely. The Perth property market in 2025 offers a rare window of opportunity for investors, with housing still relatively affordable, rental demand at record highs, and infrastructure driving long-term capital growth.
Whether you’re chasing cash flow in high-yield suburbs like Rockingham and Baldivis or targeting future value in areas like Willagee or Alkimos, one thing is clear: the best suburbs to invest in Perth are evolving, and smart investors are acting now.
But no investment works without the proper financial structure. That’s where Stryve Finance comes in.
Dylan Bertovic is the Director and Senior Finance Broker at Stryve Finance, specialising in non-traditional lending solutions. He helps clients across Australia with tiny home loans, construction finance, equipment and asset lending, refinancing, and investor loans. With deep expertise in self-employed and renovation mortgages, Dylan is known for crafting tailored strategies that get results
