Best investment suburbs in Perth: Where to invest in 2025

Investing in property is one of the most reliable ways to build wealth. Perth is emerging as a prime location for savvy investors due to its affordability, economic growth, and infrastructure developments.

The city offers suburbs with strong potential for capital growth, robust rental yields, and exciting future prospects.

If you want to make a smart investment in Perth, this guide highlights the top suburbs to consider in 2025, focusing on growth factors, infrastructure projects, and market trends.

1. Baldivis: A hub of affordability and strong rental yields

Baldivis is set to remain a favorite among property investors in 2025, thanks to its affordable housing market and expected growth in rental demand driven by ongoing infrastructure projects.

Located about 46km south of Perth’s CBD, this suburb is ideal for families and young professionals.

Why invest in Baldivis?

• Rental yields: Baldivis offers rental returns averaging around $520-$630 per week for houses making it a hotspot for real estate investors.
• Population growth: More families and professionals are relocating to Baldivis due to its affordable housing and proximity to key transport routes. This growing population ensures steady rental demand and increased property sales.
• Infrastructure projects: Notable upgrades include the Baldivis South Community Centre, expansions to the Kwinana Freeway, and new shopping precincts, enhancing the suburb’s appeal.

2. Armadale: Affordable entry point with future potential

Armadale, located in Perth’s southeastern corridor, is expected to continue attracting investors in 2025, thanks to its affordability and planned infrastructure upgrades, making it a prime location for entry-level investments.

Why invest in Armadale?

• Affordability: With a median house price of $550,000 and a median unit price of $440,000, Armadale is an affordable entry point for first-time investors.
• Infrastructure improvements: The upcoming Metronet extension to Byford and upgrades to Armadale train line stations are expected to significantly improve connectivity to Perth’s CBD. This increased accessibility is likely to drive demand for housing in the area, boosting property values and making Armadale a strategic choice for capital growth-focused investors.
• Rental demand: Armadale’s affordability, with median weekly rents around $515-550, attracts long-term tenants such as young families and working professionals. This steady demand translates to low vacancy rates and reliable rental income, making it a dependable choice for investors looking for consistent cash flow.

3. Subiaco: Prime location with capital growth potential

Subiaco is a high-demand inner-city suburb that continues to attract attention for its strong long-term growth potential. Its proximity to Perth’s CBD and vibrant lifestyle offerings make it a standout choice.

Why invest in Subiaco?

• Capital growth: Subiaco’s consistent property value appreciation, with median house prices currently at $1.85 million and $650,000 for units, positions it as a low-risk, high-return option for investors focused on long-term wealth-building.
• High-end amenities: Subiaco offers proximity to elite schools like Perth Modern School, renowned dining precincts, and top-tier healthcare services, attracting premium tenants who are willing to pay higher rents.
• Infrastructure projects: The Subi East redevelopment project will introduce over 2,000 new residences and commercial hubs, significantly boosting the suburb’s population and increasing demand for high-quality rental properties.

4. Alkimos: Future growth fueled by infrastructure projects

Situated in Perth’s northern corridor, Alkimos is forecasted to experience significant growth in 2025 due to transformative infrastructure developments and increasing appeal among new residents.

Major infrastructure projects are transforming it into a highly connected and desirable area.

Why invest in Alkimos?

• Infrastructure development: The extension of the Joondalup railway line and the $138 million Alkimos Central project, which includes schools, retail spaces, and public amenities, make it a future growth suburb.
• Population growth: Alkimos is attracting young families and professionals due to its planned infrastructure and affordable property prices, boosting housing demand and rental interest.
• Affordability: Alkimos, with a median house price of $625,000 and a median unit price of $535,000, provides an opportunity for investors to enter a market poised for growth due to planned infrastructure projects like the Alkimos Central development.

5. Rockingham: Coastal appeal with strong rental demand

Rockingham, a coastal suburb, is highly sought after for its lifestyle appeal and robust rental yields. It’s a great option for investors seeking a balance between affordability and long-term growth.

Why invest in Rockingham?

• Coastal investment potential: Rockingham’s picturesque coastline and proximity to beaches make it highly attractive to tenants seeking a lifestyle property. These attributes support strong rental demand, with median weekly rents around $487-$570 for houses.
• Economic prospects: Local industries, such as defense and marine services driven by the HMAS Stirling Naval Base, ensure stable employment opportunities, attracting professionals and families to the area. Additionally, commercial developments like the Waterfront Village Revitalisation Project are expected to enhance Rockingham’s economic prospects and increase property values.
• Future growth: As infrastructure improvements, such as upgrades to transport links and local amenities, are completed, the suburb is likely to experience increased demand from both renters and buyers. For investors, this positions Rockingham as a prime location for long-term capital growth and rental income stability.

Benefits of investing in Perth suburbs

• Competitive affordability: Perth’s house prices are among the most affordable in Australia, allowing investors to enter at lower costs while benefiting from capital growth.
• Sustained population growth: Western Australia’s population is projected to grow steadily over the next decade, driven by interstate migration and overseas arrivals. This will fuel demand for housing in key suburbs, increasing both rental yields and property values.
• Thriving economy: Diversified industries such as mining, agriculture, and renewable energy projects ensure a resilient economy, creating stable job opportunities that attract long-term tenants and homebuyers.

• Infrastructure development: Projects such as Metronet and urban revitalization improve connectivity and property demand in key suburbs.

 

How we can help you secure the right investment loan

Navigating the Perth property market can be complex, especially when deciding where to invest for maximum returns. That’s where we come in.

As experienced mortgage brokers, we specialize in connecting investors with the best financing options to meet their needs.

Here’s why investors trust us:

• Access to 40+ lenders: We offer a wide network of lenders across Western Australia, ensuring you get competitive investment loan rates and terms.
• Tailored loan solutions: We take the time to understand your financial goals and provide financing options that align with your investment strategy.
• Streamlined loan process: From finding the best loan to managing paperwork, we simplify the process, saving you time and effort.

Whether you’re aiming for rental yields, capital growth, or both, we help you secure the right loan for your investment.

Let us help you take the next step – contact us today to get started.

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