Investment Property Perth WA: 2026 Guide to Yields, Growth, and Costs

Investment Property Perth WA: Your 2026 Guide

An investment property in Perth WA in 2026 is one of the few places in Australia where you can still find sub-$700k entry points paired with unit yields near 5.9 per cent and a vacancy rate under 1 per cent. That combination — tight tenant demand, relative affordability against Sydney and Melbourne, and the nation's lowest top stamp duty rate — is why WA has become the single most-watched property market on the east-coast investor radar. You can invest at half the east-coast entry price and still beat east-coast yields.

This guide is written for anyone weighing up Perth against Sydney, Brisbane or the Gold Coast. We cover what the median house price actually looks like, the yields you can realistically expect, the suburbs drawing the most investor interest, the median rent you can charge, the capital gains maths, and the tax benefit of buying in WA.

Why the Perth Property Market Leads Australia in 2026

Perth's housing market is driven by a structural housing shortage and robust population growth — Perth dwelling values surged by approximately 13.0 per cent in 2025, pushing the median property price well past $900,000 driven by a strong local economy and renewed buyer confidence. In 2026, Perth is forecast to experience double-digit growth of between 10 per cent and 16 per cent, supported by the fastest population growth in Australia and a rental vacancy rate near crisis levels.

For more on this topic, read our guide to building a property portfolio.

Three things are powering it:

• Population growth. WA is attracting interstate and overseas migrants on the back of mining and lifestyle appeal, with the city absorbing most of the inflow and adding to already strong housing demand.
• Structural housing shortage. Perth has roughly 5,000 active property listings, significantly lower than the approximately 12,000 needed for a balanced market. Construction costs and trade shortages have stalled new builds, keeping market stock levels well below buyer demand.
• Owner occupiers outbidding investors. Tenants who would normally wait are now competing in the wider property market, tightening the lease pool further.

Vacancy rates in high-demand zones in Perth often sit below 1 per cent, pushing yields and rental returns up for anyone already holding stock. Properties in Perth are selling exceptionally fast, with a median time on the market of just 9 days. Over the past year and the year before, Perth tenants have been bidding up leases every week, and landlords have kept lifting rent as leases roll.

Perth Median House Price and Entry Points Across Western Australia

The median house price pushed past $1 million in early 2026, while the median unit value sits around $699,814. Units at a median purchase price near $595,000 are the most affordable way into the city and give you more floor space per dollar than comparable Sydney stock.

Outside the metro, Western Australia has strong pockets too. The south west — Busselton, Dunsborough, Margaret River — draws lifestyle-driven families and communities built around coastal living. Dunsborough, WA, is a premier lifestyle destination with a median house price of $1,200,000, experiencing +29.2 per cent growth in the last year and a rental yield of 3.4 per cent. Further south, Albany is a quieter lifestyle play. Inland mining towns like Karratha and Port Hedland still post eye-watering gross yields but carry growth risk.

Rental Yields: The Real Reason Investors Target Perth Real Estate

Rental yields are what drag east-coast real estate buyers west. The broader Perth real estate market is running a structurally different cycle to Sydney or Melbourne, and the yield gap shows up in nearly every agent's statement. Current figures from SQM Research and CoreLogic put Perth rental yields at:

• Houses — 4.0 per cent to 4.3 per cent gross rental yields
• Units and apartments — 5.5 per cent to 5.9 per cent gross rental yields
• Net — 3.2 to 3.8 per cent after expenses

Those numbers sit ahead of every other mainland capital real estate market. The median weekly rent on a unit sits near $670 per week, with houses closer to $720 per week in most inner and middle-ring suburbs. In Western Australia, the rental yield is a critical factor for property investors, with many areas reporting gross rental yields exceeding 5.0 per cent, making it an attractive market for investment.

The gross rental yield is calculated by taking the annual rental income and dividing it by the property's value, expressed as a percentage, which helps investors assess potential returns.

Before you commit, run the numbers with our rental yield calculator. Small shifts in median weekly rent or purchase price change the yield picture materially — a meaningful source of profit for the right deal.

Best Perth Suburbs for Investment Property Buyers

There is no single "best" suburb — it depends on your budget, strategy, and whether you want capital growth or rental income first. Investors should target properties that are scarce and in high-demand suburbs for better rental returns. High-performing school catchment zones in Perth attract high tenant demand, and suburbs with major infrastructure upgrades — particularly METRONET rail expansions — are prime for capital growth. Residential properties near coastal lifestyle hubs experience strong capital growth and solid rental demand.

Standout growth suburbs (last 12 months)

• Spearwood, WA — +27.0 per cent annual growth in median house prices, reaching $870,000, with a solid rental yield of 4.4 per cent and a median weekly rent of $675.
• Riverton, WA — exceptional annual growth of +27.6 per cent, with a median house price of $1,235,000 and a median rent of $775 per week, attracting established tenants.

Inner-ring (growth focus)

• Mount Lawley, North Perth, Victoria Park — leafy streets, professionals, proximity to the city and Swan River, space for families
• Scarborough, North Fremantle — tourism demand, strong for short-term lease turnover

Middle-ring (balanced yield and growth)

• Bassendean, Bayswater, Belmont — sub-$750k entry points, young families, steady yields
• Cannington, Canning Vale — amenities, schools, value-add potential

Growth corridors (entry-level and development plays)

• Ellenbrook, Baldivis, Byford — buy land, develop new builds, first-home owner occupier competition

Demand for "lock-and-leave," low-maintenance properties also remains high near transport nodes due to FIFO work dynamics. Use REIWA data to confirm current median house price and vacancy rates for any shortlisted suburbs.

Stamp Duty and Other WA Costs

Western Australia has the lowest top marginal stamp duty rate in Australia at 5.15 per cent (compared to NSW's 5.5 per cent and Victoria's 6.5 per cent top bracket). On a $750,000 investment property, you pay roughly $28,453 in duty — versus $40,000+ for an equivalent Sydney purchase.

First home buyer concessions do not apply to investment properties. However, there is one live concession worth knowing about:

• Off-the-plan duty exemption — up to 100 per cent duty waiver on eligible pre-construction apartments, currently expiring 30 June 2026.

Check Revenue WA transfer duty or run it through our stamp duty calculator for a state-by-state compare.

Land tax in WA

In Western Australia, properties valued over $300,001 are subject to land tax, with a flat rate of $300 for properties valued up to $420,000, increasing with higher valuations. It is paid annually and the full amount is deductible against rental income. See our land tax calculator to model where your portfolio sits.

Tenancy rules and borrowing settings

WA has implemented tenancy reforms, such as limiting rent increases to once every 12 months. New APRA debt-to-income settings effective from February 2026 may restrict borrowing for some investors, so pre-approval timing matters more than it did last year.

Tax Benefits of Property Investment in Western Australia

Main deductions for WA property investment

The tax advantages of property investment in Western Australia match the rest of Australia — what changes is how the numbers stack against your income.

You can generally claim:

• Loan interest on the purchase loan against your taxable income
• Property manager fees, landlord insurance, council rates, and repair expenses
• Depreciation on the building and fixtures (Division 40 and Division 43)
• 50 per cent CGT discount if you hold longer than 12 months before you sell

Because the city's yields are higher than the east coast, many end up with a positive cashflow property — one that generates rental income that exceeds the total expenses of owning the property, including mortgage and maintenance costs, resulting in a profit for the investor. Negatively geared properties, by contrast, incur a loss because the costs of owning the property — primarily the interest on the mortgage — exceed the rental income, but this loss can be offset against other income for tax purposes. Negative gearing allows property investors to offset losses against their taxable income, which can make rental properties more affordable despite running at a loss. Model both scenarios with our negative gearing calculator.

Full rules sit with the ATO residential rental properties guidance — read it before your first tax return as a landlord.

Picking the Right Property in Perth

Picking the right property in this city comes down to a handful of important questions. Investing in Perth requires focusing on locations with low vacancy rates and proximity to employment hubs — your location and property type matter more than timing.

• Are you buying for income or growth? Inner-ring units lean growth; middle-ring houses lean yield.
• What is your holding period? Under five years rarely outruns stamp duty and selling costs.
• Does the location have long-term demand drivers? Transport, schools, amenities, employment, coastal access.
• What does last year's growth curve look like? Last year is a useful indicator but not a promise.
• Who are the tenants? Families, professionals, students, or short-stay — each points at a different property type.

Weigh each question against your budget and timeline. When property investors skip these questions and chase a best deal headline, they find out two years in that the "bargain" suburb has weak tenant interest or limited growth. Do the SQM research first; sign the contract second.

Working with a Perth Property Manager

Unless you live in the city, you need a property manager from day one. Hiring a property manager can help ensure that all daily tasks of managing an investment property are taken care of, acting as a conduit between the landlord and the tenant. Approximately 60 per cent of investment properties in Western Australia are managed professionally, indicating a significant trend towards utilizing property management services. A local property manager handles tenant selection, rent collection, inspections, tribunal disputes, and lease renewals. Property managers are skilled at understanding the market rate for properties and setting appropriate rental prices, which can help maximize rental income for landlords.

Expect to pay around 7 to 9 per cent of weekly rent as the management fee, plus letting fees (typically 1-2 weeks of rent) and advertising. Vet your property manager on three things:

• How many properties they already manage — over 150 per person is a red flag
• Average vacancy between tenancies — you want under three weeks
• Communication frequency and statement clarity

A weak property manager can turn a 5 per cent gross yield into a 3 per cent net yield fast. Meet two or three candidates in person before appointing one. Good local advice — on leasing strategy, rent positioning, maintenance tradeoffs — separates the keepers from the rest.

A Step-by-Step Buying Process for WA

The buying process in WA is similar to other states but with local quirks. Follow this checklist to avoid the traps first-time buyers hit. See our guide to where to buy investment property across Australia.

1. Set a budget — factor stamp duty, loan costs, building and pest, and a 3-6 month buffer.
2. Get pre-approval — aim for a loan with a linked offset and flexible terms.
3. Shortlist suburbs by budget and strategy, not hype.
4. Inspect ten properties before you make an offer.
5. Use our rental yield calculator to model cash flow on each option.
6. Negotiate — WA contracts run on the REIWA template; use a local conveyancer.
7. Line up a property manager before settlement.
8. Lodge your first tax return with all depreciation and interest claims.

Treat this like a business: every step has a checklist and every expense is tracked.

See our breakdown of all investment property costs.

FAQs — Investment Property Perth WA

Is Perth a good place to invest in property?

In 2026, yes — Perth has the tightest vacancy of any capital, yields near 5.9 per cent on units, and the lowest top stamp duty rate in Australia. The risk is late-cycle timing. Invest with a long holding period in mind, not a quick flip.

What is a good rental yield in Perth?

A gross yield of 5 per cent or higher is strong for a house, 6 per cent or more for a unit.

How much stamp duty do you pay on an investment property in WA?

On a $750,000 purchase, roughly $28,453 — about 3.79 per cent.

Can I buy land and build in WA?

Yes. Growth corridors like Ellenbrook and Baldivis have ongoing land releases. Factor in the build timeline before you sell or settle.

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