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Five Suburbs On The Rise For Renting In Perth
August 26, 2015
Different suburbs offer different opportunities for buyers – and the choice of area will depend on a person’s individual investment goals. Some people buy property to generate cash flow, others look for capital growth whilst others want rental yields – but regardless of your investment strategy, it’s important to remember that property is more often than not a long-term proposition.
In recent times, Perth has seen a significant jump in the number of apartment blocks and multi-residential developments across several different suburbs as well as an increase in proposals from developers – and this has led to speculation that the city could be headed for an oversupply.
A slowdown in WA’s population growth, which for the year to June 2014 was at its lowest level in eight years, is also having an effect on the rental market with vacancy rates rising – and expected to continue to rise.
That said, the current low interest rates are encouraging for investors and those that are looking for rental growth should consider suburbs that have a large infrastructure such as a hospital or university as many people want to live close to their place of work. Convenience, demographics, population growth, proximity to the CBD, access to public transport and facilities and services such as shopping centres and restaurants are other important considerations when choosing a suburb for an investment property – but the overriding consideration has to be supply and demand.
So, which are the best suburbs for renting in Perth? Here are a few that we think have great rental potential.
Scarborough is set for a major redevelopment which should transform this affordable beachside suburb into a world-class destination for tourists and for residents. There are a number of apartment blocks that have already been built – with others under construction or underway – and these could become attractive propositions for renters at the right price.
This under-rated suburb is less than 5kms from the Perth CBD and has good transport infrastructure and easy access to highways, the beach and the retail/commercial precinct of Scarborough Beach Road and Osborne Park. Rental yields are often over 5% – and units and houses in this area as well as surrounding suburbs of Wembley and West Leederville offer good investment prospects.
Bassendean is currently an affordable area and its proximity to the city, the Swan Valley and the foreshore makes it an attractive proposition for investors. There are plans to increase density along the train line, and coupled to a planned upgrade of the Bassendean Town Centre, this redevelopment could be good news for both investors and renters.
Real estate in Victoria Park offers good investment opportunities as it’s an up-and-coming area that is attracting a growing number of young professionals who want to live in a vibrant, well-serviced area that is close to the CBD.
Although the resource boom has subsided, many mining and services companies still have their offices in West Perth which make it a popular choice for executive rentals. Close to the city, Subiaco, King’s Park and within the free CA bus service, West Perth is a suburb with benefits and many of those who have bought apartments for rental yields have been pleased with their investment performance.
Investors- where do you think are rental hot spots in Perth right now? Where would you choose to buy an investment property?
About the author: Cindy Knight is the general manager of Time Conti Sheffield in Victoria Park. Cindy has been working at Time Conti Sheffield since 2002 and during this time has seen many changes in the property management industry in Perth. Cindy is passionate about delivering the best service to every property investor that walks through the doors of Time Conti Sheffield and her insider knowledge of the local real estate market means she is an expert in her field. For more information, visit their website.