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WHy build to rent?
With strong demand, low vacancy rates, and increasing property prices, Perth is considered a good place to invest in property in 2025. Perth has been experiencing strong growth in both its population and economy, and with increasing demand for quality housing, this presents a great opportunity for strategic investment.
See the staggering growth Perth has seen compared to other capital cities in 2024:
Key Reasons to Invest in Building Homes in Perth
Rising Demand for Housing
Perth's population continues to grow, driven by both interstate migration and international migration. This has led to an increase in demand for housing, making property development a lucrative avenue for investment. Perth’s population is projected to reach 3.5 million by 2050, making it Australia’s third-largest city.
Strong Economic Growth
With a diversified economy and a focus on infrastructure development, Perth’s economy remains resilient. Government investment in transport, utilities, and other infrastructure projects supports long-term growth in the property market.
High Rental Yields
Perth's rental market offers attractive yields compared to other major cities in Australia. The demand for rental properties, particularly in suburban areas, is expected to remain strong, providing steady cash flow for investors. Rental availability has been below 1% since 2020, ensuring consistent rental demand.
Affordable Land and Construction Costs
Compared to other Australian cities, Perth offers relatively affordable land and construction costs, meaning investors can maximise returns on their development projects.
Potential for Capital Gains
As the market continues to recover and grow, the potential for capital appreciation is strong. The combination of demand for housing and limited land availability in key areas makes Perth an attractive location for long-term investment. Compared to other Australian capitals, Perth offers a lower entry point with high rental yield potential.
Why Invest new in WA?
Yanchep median house sales March 2023
Yanchep median house sales March 2025
Lower Maintenance Costs
New homes typically require fewer repairs and maintenance, reducing long-term expenses.
Modern Features
New builds come with the latest design trends, energy-efficient appliances, and technologies, attracting tenants and enhancing property value.
Warranty protection
New homes often come with builder warranties, offering peace of mind and financial protection for potential defects.
Higher Energy Efficiency
New builds are generally more energy-efficient, reducing ongoing utility costs for tenants and increasing appeal.
Strong Capital Growth
New properties tend to experience strong capital growth, especially in growing or developing areas.
Attractive to Tenants
A new home is likely to attract high-quality tenants who value modern living spaces and are willing to pay higher rents.
Depreciation Benefits
New builds are eligible for significant depreciation deductions, which can help reduce taxable income.
Low Vacancy Risk
The appeal of a new home can lead to lower vacancy rates, ensuring consistent cash flow from rent.
Long-Term Investment
A new home offers a long-term investment option with minimal immediate repair concerns and the potential for high returns over time.
median prices of established house sales 2023-25
Click the maps below to zoom in on areas.
Median house sales March 2023
Median house sales March 2025
FREQUENTLY ASKED QUESTIONS
Perth offers a combination of affordability, high rental yields, and strong population growth. With increasing interstate and international migration, infrastructure projects, and a diversifying economy, many suburbs are experiencing sustained capital growth and rental demand.
Rental yields in Perth are among the highest in Australia, with many suburbs delivering 5%–6% gross yields, and with dual keys, even more. This is driven by tight rental supply and ongoing demand from workers, students, and families.
Yes. Despite recent growth, Perth’s median house price remains below the national average, and rental demand is at record highs. Low vacancy rates and rising construction costs make established homes especially appealing. Perth is still seen as undervalued compared to east coast markets.
Yes. With relatively low property prices and high rents, positive cash flow is achievable in many Perth suburbs. This is particularly attractive for first-time investors and those focused on income over growth.
Look for areas with:
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Population growth and housing demand
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Infrastructure spending (rail, roads, schools)
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Rezoning or density uplift potential
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Low vacancy rates and strong rental yields
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Employment hubs nearby
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