Perth’s property market has been established as a good place to develop property in recent years, with continued migration creating residential and commercial demand and prices continuing to rise. Within Perth, however, certain areas offer better returns, which are dependent on a number of different factors. Taking these factors into consideration or speaking to a developer with experience is advisable before you invest.
Is Perth good for property investment?
Perth is good for property investment because of its strong economy, growing population, abundance of natural minerals and long-term infrastructure projects designed to accommodate larger populations. This, combined with a shortage of housing and low vacancy rates makes Perth a good place to invest.
It’s also an urban sprawl, stretching 150 kilometres up and down the coast. With this spread, it’s important to consider which are the best investment suburbs in Perth?
Is it a good time to build?
When is the right time to build a property, be it as an investment or a place to live, is the million dollar question. The answer depends on why you’re building, what you’re hoping to achieve, and what’s important to you.
What is clear is that property prices in Perth are continuing to rise. Perth’s population is also expected to continue to grow, leading to sustained demand, while there is a strong likelihood of interest rate cuts this year, easing mortgage pain and potentially increasing the number of new buyers ready to enter the market.
How long will Perth boom for?
How long is a piece of string? How long Perth property continues to boom will be governed by a number of external influences, such as national interest rate cuts, as well as both the domestic and international economic climate. The outlook, however, is optimistic, with some experts predicting soaring property prices could keep rising for at least the rest of this decade.
What are the best suburbs in Perth?
Just as beauty is in the eye of the beholder, Perth’s best suburbs definitely depend on who you ask. Some people have strong views regarding which side of the Swan river is a more desirable address. Even aside from a North/South divide, what you consider to be Perth’s best suburb will depend on what you’re looking for.
Generally speaking, suburbs with good local amenities and facilities (such as those close to green spaces such as King’s Park), good schools (Claremont, Cottlesloe and Mosman Park score well in this regard) or close to the beach (Scarborough, Trigg, and Coogee for example) are well regarded.
Which suburbs are booming in Perth?
While there are many booming suburbs in Perth, there are a few that experts suggest might be the best suburbs to invest in in Perth.
Armadale
This pocket of south-east Perth has emerged as the epicentre of booming affordable suburbs in the entire nation, with research showing developing suburbs in Perth like Kelmscott, Armadale, Wungong and Champion Lakes recording the largest price growth in all of Australia. Upgrades to the Tonkin Highway and Armadale train line are making the area more accessible, which increases development potential and the city has been marked for future infrastructure by the federal government, boosting things still further.
Cottlesloe
Arguably the jewel in Perth’s crown, this upmarket western suburb is a prime target for investors. Tenants are attracted to its lifestyle benefits - from world class beaches to running routes and dining opportunities. Along the beachfront, development is beginning, with the suburb opening its eyes to highrise at last.
Redcliffe
Redcliffe has an undeniable appeal for developers due to its position right next to Perth International Airport. Median house prices have jumped by almost 30% in the last year, and further growth is expected. Its proximity to both the airport and the CBD make it enticing for FIFO workers, while the completion of the Redcliffe train station and the airport expansion boost its demand for residential and commercial sectors.
Heathridge
In the northwest of Perth, Heathridge is an attractive proposal for developers due to its proximity to beaches, Edith Cowan University and the future Ocean Reef Marina development. Heathridge is a family friendly suburb, with large blocks and the potential subdivision opportunities increasing profitability.
What you need to consider when deciding where to develop
Once you have decided on the block of land itself, it’s worth considering what you want to achieve. Whether you are planning to sell the development on, or rent it out, as well as how large the development is, and what the site and its surroundings offer are all considerations.
Are you selling or renting?
Are you planning to sell the development on, or rent it out? Many considerations will be the same, as the development’s rental potential will impact the price you can sell it for. But if you are planning longer-term involvement as a landlord, you may want to consider what your capacity is for dealing with tenants, and what kind of tenants you want to attract.
Which suburbs in Perth have the lowest vacancy rate?
The suburbs in Perth with the lowest vacancy rates offer good opportunities for developers. The low vacancy rate means there will be a competitive tenancy pool, which means stronger rental yields and consistent cash flow. Put simply, there is more demand than supply, which bodes well for suppliers.
What are the fastest growing suburbs?
The fastest growing suburbs vary, depending on whether you’re referring to population or price growth. Generally speaking, Cottlesloe and Armadale are experiencing significant price growth, while Redcliffe and Heathridge are seeing an increase in population, due to the developing infrastructure.
Planned infrastructure projects
When planning a development, it pays to look into proposed government infrastructure projects. Plans like rail line extensions, highway upgrades or revitalisations of malls or public facilities all make an area more attractive and profitable to a developer, due to their transport links and appeal to young families.
How Novus Projects can help
Novus Projects combines the experience and skills of one of Perth’s leading residential home builders, with the precision of a commercial construction builder.
We have the expertise and market knowledge to help you select the right area for your development project. Through our close ties with Novus Homes, and our 30 years of experience in the residential market, we can help you maximise development opportunities.
Contact us if you have a project you’d like to discuss or you would like further advice on how to subdivide land in WA, we’d be happy to help.