South or north of the river? Perth's great property debate finally settled
Perth's Swan River brings people together to enjoy its beauty and recreational joys yet is also a source of never-ending competitiveness, but when it comes to property investment prospects there's one clear winner.
Perth is divided by the Swan River and there is often a lot of local discussion about whether north or south is best.
If you’re looking for a home for yourself, it’s a matter of personal preference, but if you’re looking for an investment opportunity different factors come into play, such as capital growth, rent price growth and yield.
We’ve reviewed the latest data to see which side of the river currently offers the best opportunities for investors.
House price growth
When it comes to capital growth, the southern suburbs took out eight places in the top 10. The only northern suburbs to feature were Middle Swan and Bullsbrook in the north-east.
The riverside suburb of Shelley recorded the strongest growth at 29.7 per cent in the 12 months to the end of September. While a median house price of $1.145 million might not be very attractive to investors, there were plenty of affordable suburbs on the list, north and south, with median prices below Perth’s median dwelling value of $570,000.
Top 10 suburbs for house price growth
| Rank | North or South | Suburb | Annual Median House Price (Sep 2023) | Annual House Price Growth | Selling Days (Q3 2023) |
|---|---|---|---|---|---|
| 1 | S | Shelley | $1,145,000 | 29.7% | 20 |
| 2 | N | Bullsbrook | $492,000 | 23.0% | 11 |
| 3 | S | Parmelia | $395,000 | 20.4% | 6 |
| 4 | S | Cooloongup | $447,500 | 19.3% | 4 |
| 5 | S | Hillman | $409,000 | 18.6% | 3 |
| 6 | S | Orelia | $400,000 | 18.2% | 6 |
| 7 | S | Armadale | $349,000 | 16.3% | 5 |
| 8 | N | Middle Swan | $418,000 | 16.1% | 7 |
| 9 | S | Port Kennedy | $510,000 | 15.9% | 7 |
| 10 | S | Coodanup | $397,000 | 15.7% | 8 |
Source: REIWA. Houses, minimum 28 sales in year to Sep 2022 and to Sep 2023, land size < 1 HA, as at 19/10/2023.
Fastest selling suburbs
When homes are selling quickly in a particular area it indicates there is a lot of demand. This list is dominated by more affordable suburbs at the moment, suggesting buyers are seeking value. With the exception of inner-city suburb Shenton Park, they are all below the Perth median.
The south came to the fore again, with seven suburbs in the top 10. Seville Grove in the south-east took out top spot with a median time on market of just three days in the three months to September.
The majority of these suburbs have also recorded strong price growth.
Top 10 fastest selling suburbs
| Rank | North or South | Suburb | Annual Median House Price (Sep 2023) | Annual House Price Growth | Selling Days (Q3 2023) |
|---|---|---|---|---|---|
| 1 | S | Seville Grove | $445,000 | 15.0% | 3 |
| 2 | S | Cooloongup | $447,500 | 19.3% | 4 |
| 3 | N | Shenton Park | $1,580,000 | -4.3% | 4 |
| 4 | S | Armadale | $349,000 | 16.3% | 5 |
| 5 | S | Greenfields | $410,000 | 14.4% | 5 |
| 6 | N | Dayton | $500,000 | 7.0% | 5 |
| 7 | S | Parkwood | $565,000 | 4.1% | 5 |
| 8 | S | Leda | $420,000 | 15.1% | 5 |
| 9 | S | Camillo | $368,000 | 15.5% | 6 |
| 10 | N | Carramar | $650,000 | 9.2% | 6 |
Houses, minimum 28 sales in year to Sep 2023, land size < 1 HA, as at 19/10/2023
Rent price growth
Perth has seen some extremely strong rent price growth in the past few years, fuelled by declining supply and rising demand.
The southern suburbs took out seven of the top 10 places for rent price growth in the year to September, with Seville Grove recording a massive 38.1 per cent increase in the last 12 months.
Top 10 suburbs for rent price growth
| # | N/S | Suburb | Annual Median House Price (Sep 2023) | Annual House Price Growth | Selling Days (Q3 2023) | Median Weekly House Rent (Q3 2023) | Leasing Days (Q3 2023) | Annual Rent Growth (House) | Rental Yield (Sep 2023) |
|---|---|---|---|---|---|---|---|---|---|
| 1 | S | Seville Grove | $445,000 | 15.0% | 3 | $580 | 13 | 38.1% | 6.8% |
| 2 | N | Quinns Rocks | $612,000 | 6.2% | 8 | $650 | 17 | 35.4% | 5.5% |
| 3 | S | Mount Pleasant | $1,410,000 | 3.3% | 18 | $875 | 17 | 34.6% | 3.2% |
| 4 | S | Belmont | $530,000 | 1.0% | 25 | $600 | 19 | 33.3% | 5.9% |
| 5 | N | Mount Lawley | $1,200,000 | -0.8% | 18 | $800 | 16 | 33.3% | 3.5% |
| 6 | S | East Victoria Park | $765,500 | 10.6% | 10 | $660 | 14 | 32.0% | 4.5% |
| 7 | N | Balga | $397,000 | 9.1% | 8 | $548 | 16 | 30.4% | 7.2% |
| 8 | S | Huntingdale | $495,000 | 11.2% | 7 | $580 | 14 | 28.9% | 6.1% |
| 9 | S | Coolbellup | $580,000 | 3.6% | 8 | $540 | 10 | 28.6% | 4.8% |
| 10 | S | Midland | $380,000 | 4.1% | 16 | $500 | 17 | 28.2% | 6.8% |
Houses, minimum 15 leases in 3-months to Sep 2022 and to Sep 2023, as at 19/10/2023
Perth’s fastest leasing suburbs
Again, the southern suburbs led the way with seven suburbs making the top 10.
In general, rents in Perth’s southern suburbs tend to be cheaper than those north of the river, making them very attractive locations for tenants. Maddington (south-east), Coolbellup (south-west) and Erskine (south-west) all recorded a median leasing time of 10 days and had median house rents below the Perth median of $600 per week.
Top 10 fastest leasing suburbs
| # | N/S | Suburb | Annual Median House Price (Sep 2023) | Annual House Price Growth | Selling Days (Q3 2023) | Median Weekly House Rent (Q3 2023) | Leasing Days (Q3 2023) | Annual Rent Growth (House) | Rental Yield (Sep 2023) |
|---|---|---|---|---|---|---|---|---|---|
| 1 | S | Maddington | $420,000 | 13.5% | 12 | $530 | 10 | 23.3% | 6.6% |
| 2 | S | Coolbellup | $580,000 | 3.6% | 8 | $540 | 10 | 28.6% | 4.8% |
| 3 | S | Erskine | $508,200 | 7.0% | 10 | $520 | 10 | 15.6% | 5.3% |
| 4 | N | Greenwood | $660,000 | 6.5% | 14 | $650 | 11 | 24.4% | 5.1% |
| 5 | S | Kewdale | $568,250 | 11.1% | 14 | $520 | 11 | 22.4% | 4.8% |
| 6 | S | Byford | $495,000 | 8.8% | 7 | $570 | 11 | 14.0% | 6.0% |
| 7 | S | Success | $615,000 | 6.0% | 9 | $620 | 11 | 12.7% | 5.2% |
| 8 | N | Yokine | $720,000 | 4.0% | 13 | $600 | 11 | 9.1% | 4.3% |
| 9 | N | Mosman Park | $1,830,000 | 4.3% | 15 | $900 | 11 | -25.0% | 2.6% |
| 10 | S | Willetton | $900,000 | 1.6% | 13 | $650 | 12 | 18.2% | 3.8% |
Houses, minimum 15 leases in 3-months to Sep 2023, as at 19/10/2023
Gross rental yields
While the south again dominated the top 10, when it came to yields, northern suburb Balga took out the number one spot with a yield of 7.2 per cent. It’s a very affordable area with a median house price of $397,000, which has risen 9.1 per cent over 12 months, and a median weekly house rent of $420.
The top 10 are all priced well below Perth’s median house price, which when combined with Perth’s strong rent price growth, makes for some attractive yields.
Top 10 suburbs by rental yield
| # | N/S | Suburb | Annual Median House Price (Sep 2023) | Annual House Price Growth | Selling Days (Q3 2023) | Median Weekly House Rent (Q3 2023) | Leasing Days (Q3 2023) | Annual Rent Growth (House) | Rental Yield (Sep 2023) |
|---|---|---|---|---|---|---|---|---|---|
| 1 | N | Balga | $397,000 | 9.1% | 8 | $548 | 16 | 30.4% | 7.2% |
| 2 | S | Armadale | $349,000 | 16.3% | 5 | $460 | 14 | 21.1% | 6.9% |
| 3 | S | Midland | $380,000 | 4.1% | 16 | $500 | 17 | 28.2% | 6.8% |
| 4 | S | Seville Grove | $445,000 | 15.0% | 3 | $580 | 13 | 38.1% | 6.8% |
| 5 | S | Maddington | $420,000 | 13.5% | 12 | $530 | 10 | 23.3% | 6.6% |
| 6 | S | Parmelia | $395,000 | 20.4% | 6 | $490 | 18 | 14.0% | 6.5% |
| 7 | S | Gosnells | $405,000 | 14.1% | 8 | $500 | 13 | 19.0% | 6.4% |
| 8 | S | Mandurah | $365,000 | 10.9% | 12 | $450 | 18 | 8.4% | 6.4% |
| 9 | S | Queens Park | $490,000 | 6.5% | 9 | $600 | 19 | 17.6% | 6.4% |
| 10 | N | Nollamara | $450,000 | 4.8% | 9 | $550 | 12 | 22.2% | 6.4% |
Houses, minimum 28 sales in year to Sep 2023, land size < 1 HA, minimum 15 leases in 3-months to Sep 2023, as at 19/10/2023
Standout suburbs
A number of suburbs made appearances on several lists, highlighting their investment potential.
The standout was Seville Grove, which was number one for the fastest median selling time and rent price growth and fourth for rental yields. It did record house price growth of 15 per cent but was just out of the top 10.
Nearby Armadale was seventh for median house price growth, fourth for fastest selling and second for rental yields.
Cooloongup, Parmelia, Coolbellup, Maddington, Balga and Midland also placed on two lists.
North versus South of the river - and the winner is ...
The data suggests Perth’s southern suburbs currently offer good opportunities for investors, with affordable prices, good rent price growth and strong yields.
While this was an interesting study of the Perth market, investors need to remember that past performance isn’t a guarantee of future performance.
If you are thinking of investing you should carefully review your strategy – whether it’s capital growth, income or yield.
While Perth has its north and south divide, many suburbs also have their own internal divisions, with properties more sought after on one side of their internal boundary.
Properties on the other side, may be cheaper, but still close to the same amenity and therefore still be good investment options.
It is also worth asking about any upcoming developments that might boost the appeal of the suburb, such as improved transportation or shopping centre revitalisations, or releases of land that may see an influx of new homes and potentially slow capital growth.
