Perth rental yields top the nation.
Mar 11, 2022
What is rental yield?
Rental yield is one of the most important figures to understand when investing in a property. It is essentially the amount of money you make on an investment property by measuring the gap between your overall costs and the income you receive from renting out your property. And now is very much a landlord’s market.
What’s the rental market doing in Perth?
Perth is one of the most competitive capital cities for tenants and with the hard border controls, this has meant that many fly-in, fly-out workers have relocated to Western Australia. When you consider this plus the usual flow of people not entering or leaving WA, it’s no surprise the demand for rentals has increased, and hence this has driven up rental prices.
Property app Domain’s chief of research and economics, Dr Powell, said it was the first time Perth had ever taken the top spot for gross rental yield.
“This is a good thing to attract investment activity,” she said, “if we continue to see rising investment, that should help to increase supply.”
House Yields: Source Domain 2021 Q4 Rent Report
In WA’s southwest suburbs, for example, it is possible to buy a house for under $300,000 in Cooloongup, Medina, Calista and Orelia, with rental yields of at least 6.8%. As Perth’s property market continues to see increases in both property prices and rental yields, now is a great time to look at investing in Perth as the opportunities continue to grow.
According to Mr Collins from the Real Estate Institute of Western Australia (REIWA), “Tenant demand will remain high in 2022, which will see rents continue to rise. Despite this, the Perth rental market is still very affordable, with WA tenants enjoying the cheapest rental market conditions in the country,”
“We have some of the most affordable housing in the country, especially in our regional towns. They offer enviable lifestyle opportunities and are likely to attract strong demand from buyers as WA’s population starts to grow again.”
Market conditions across regional WA are expected to remain strong in 2022, with lifestyle predicted to be a key growth driver.
Ready to invest?
So if you’ve been considering investing in property, there’s no better time than the present. We’ve answered a few of your property management questions here, but if you’re ready to take the next step, please get in touch with us here.
