Best Rental Yields Perth: Top 10 Suburbs for 2026

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Central to Smart Realty’s distinction is the personal, hands-on involvement of our esteemed Licensee, Mahi Masud. Unlike many agencies where principals are detached from day-to-day operations, Mahi Masud is deeply embedded in every aspect of our service delivery. This direct engagement ensures that each property under our care receives meticulous attention, designed not just to maintain, but to actively maximise its value, whether it is positioned for rental income or outright sale.

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Safeguarding Your Investment: Strict Compliance with Residential Tenancy Act 1987

Navigating the complexities of property legislation can be a daunting task for even the most experienced property owner. Smart Realty views strict compliance with the Residential Tenancy Act 1987 as not merely a legal obligation, but as a critical protective shield for both owners and tenants.

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In conclusion, for Perth property owners and sellers seeking a partner who offers unwavering professionalism, transparent practices, hands-on expert involvement, and a proven history of maximising property value, Smart Realty, led by Mahi Masud, is not merely an option—it is the definitive choice. We invite you to experience the Smart Realty difference, where your property’s potential is not just recognised, but fully realised.

The Perth property market continues to demonstrate robust activity, influenced by factors such as population growth, relative affordability compared to eastern states, and sustained interstate interest. For property investors, understanding rental yields is paramount, as it directly impacts cash flow and the overall return on investment. This article explores key suburbs offering promising rental yields for 2026, drawing on historical data and current market indicators.

Understanding Rental Yields in the Perth Market

Rental yield, calculated as the annual rental income divided by the property’s purchase price, is a critical metric for investors. It represents the annual return on investment from rental income, excluding capital gains. A higher rental yield indicates a stronger cash flow relative to the property’s value. The Perth market, characterized by its unique dynamics, presents a varied landscape for rental yields, with particular pockets demonstrating sustained strength. The average Perth yield currently sits around 5.2%, a figure that provides context for evaluating individual suburb performance.

Factors Influencing Yields

Several factors contribute to a suburb’s rental yield. These include:

  • Median Property Price: Suburbs with lower median property prices often exhibit higher rental yields, assuming rental income remains competitive.
  • Median Weekly Rent: Strong rental demand and higher achievable rents directly impact yield.
  • Vacancy Rates: Low vacancy rates indicate high demand, allowing landlords to sustain or increase rental prices.
  • Proximity to Amenities: Access to schools, public transport, employment hubs, and retail centres enhances rental appeal.
  • Development and Infrastructure: Ongoing development can signal future growth potential and increased demand.

Suburbs with Historically Strong Rental Yields

Historical data provides a crucial lens through which to anticipate future performance. Early analyses from agencies like REIWA offered a snapshot of top-performing suburbs.

REIWA’s Historical High-Yield Suburbs (to April 2018)

In April 2018, REIWA identified several suburbs leading in house rental yields. While specific data points are now dated, they illustrate patterns of affordability combined with rental demand.

  • Bullsbrook: With a yield of 5.9% on a median price of $320,000 and weekly rent of $360, Bullsbrook demonstrated a compelling investment proposition. Its semi-rural appeal and growing infrastructure likely contributed to its strength.
  • Medina: Another suburb noted for its strong yield, Medina typically offers affordable housing stock, attracting tenants seeking value.
  • Parmelia: Yielding 5.3% from a median price of $267,000 and rent of $270 per week, Parmelia’s affordability was a primary driver for investors.
  • Armadale: Consistently appearing in lists of affordable suburbs, Armadale has historically offered competitive rental yields.
  • Cooloongup: With a 5.2% yield on a median price of $282,500 and weekly rent of $280, Cooloongup represents another instance of affordability translating into strong returns.
  • Maddington & Stratton: These areas have also historically featured due to their relatively lower entry points for property investment and consistent rental demand.
  • Warnbro: Achieving a 4.9% yield with a median price of $317,500 and rent of $300 per week, Warnbro’s coastal proximity at an affordable price point held appeal.

These historical examples underscore a recurring theme: affordability in conjunction with stable rental demand often underpins high yields, particularly in Perth’s outer and middle rings.

Emerging High-Yield Areas and Growth Corridors

More recent data and expert commentary indicate shifts and sustained performance in various Perth suburbs, reflecting evolving market dynamics and investor priorities.

Microburbs’ Top Median House Yields (Latest Available)

Microburbs data provides a contemporary perspective on areas demonstrating strong median house yields:

  • Midvale (6.5%): Leading the chart, Midvale benefits from its location in the eastern suburbs, an established area with ongoing development and accessibility.
  • Glendalough (6.4%): Proximity to the city and transport links, combined with varied housing stock, contributes to Glendalough’s appeal.
  • Stratton (6.3%): Continuing its trend from earlier analyses, Stratton’s affordability remains a key driver for its high yield.
  • Koongamia (6.3%): Another eastern suburb, Koongamia’s strong yield reflects its relative affordability and demand for rental units.
  • Middle Swan (5.9%): Located in the Swan Valley region, it balances lifestyle appeal with accessible housing.
  • Cannington (5.9%): A major activity centre with retail, transport, and amenities, Cannington consistently attracts both residents and investors.
  • Lockridge (5.8%): Its location within established infrastructure contributes to its consistent rental demand.
  • Midland (5.7%): A significant regional centre in Perth’s east, Midland offers a blend of commercial activity and residential options, supporting robust yields.

These suburbs collectively illustrate a focus on Perth’s eastern and northern corridors, areas undergoing redevelopment or offering traditional affordability with established infrastructure.

High Yield Areas Near Perth: Regional Opportunities

The investment landscape extends beyond the immediate Perth metropolitan area. Nearby regional centres offer compelling prospects, particularly for investors seeking lower entry points and potentially higher growth trajectories.

  • Mandurah: As a vibrant regional city south of Perth, Mandurah presents an attractive proposition. Its coastal lifestyle, growing population, and sustained demand for both housing and rentals make it a target for investors. The focus here is often on affordability, family appeal, and strong potential for capital growth in tandem with rental income.
  • Lakelands: Located within the Mandurah growth corridor, Lakelands benefits from new infrastructure and master-planned communities, drawing families and driving rental demand.
  • Pinjarra: A historically rich town with a strong community feel, Pinjarra appeals to tenants seeking a more rural lifestyle while remaining within a reasonable commute to larger centres. Affordability here is a key draw for investors.

These areas represent strategic outposts for investors looking to capitalise on Perth’s ripple effect, where demand and growth extend to accessible satellite cities.

Investment Hotspots for 2026 and Beyond

Looking specifically towards 2026, various sources highlight specific suburbs poised for continued strong performance, not just in terms of yield but also capital growth, indicating a holistic investment appeal.

OpenAgent’s Best for 2026 Investment (with Yields Noted)

OpenAgent’s analysis points to suburbs that combine solid yields with robust capital appreciation, a desirable combination for long-term investors.

  • Spearwood (4.4% yield, $870k median, +27% annual growth): While its yield might appear modest compared to some high-end suburbs, Spearwood’s remarkable annual growth of 27% signals strong capital appreciation, making it a compelling investment. Its proximity to Fremantle and the coast, combined with ongoing revitalisation, underpins this growth.
  • Eden Hill (4.9% yield, $765k median): Eden Hill offers a respectable yield alongside a solid median price, indicative of a balanced market. Its established community and accessibility contribute to its enduring appeal.
  • Riverton (3.6% yield, $1.235M median): Riverton, a more affluent suburb, demonstrates that even at higher price points, rental demand can produce notable yields, particularly when considering its overall property value. The strong demand for rentals in premium areas supports this.

These selections underline a nuanced approach where an investor might accept a slightly lower current yield for exceptional capital growth, particularly in a market with strong interstate investor interest (up 50% in 2025).

Podcast Highlights: Undervalued Areas and Growth

Recent market commentary, including a YouTube update from January 2026, further illuminates areas demonstrating significant potential.

  • Rivervale (80% 5-year growth): While specific yield figures weren’t detailed in the latest update, Rivervale’s exceptional 80% five-year growth makes it a standout. Such high capital appreciation almost certainly translates to strong overall returns, even if the immediate yield is not the absolute highest. Its proximity to the city and redevelopment initiatives are strong drivers.
  • Bassendean: This established suburb offers a blend of historical charm and modern amenities, making it attractive for renters and homeowners alike. Its consistent performance suggests reliable yields.
  • Bedford: With its leafy streets and proximity to amenities, Bedford can offer strong yields through consistent rental demand in a desirable location.
  • Koongamia: Reappearing in this context, Koongamia continues to be identified as an undervalued area with strong yield potential, benefiting from its position near amenities and employment hubs.

The mention of 86 suburbs now surpassing the $1 million median price point signifies a broader market uplift, pushing investors towards areas that still offer relative affordability and strong rental yields. For a savvy investor, identifying these “undervalued areas near amenities” is akin to finding gold in a rapidly appreciating real estate landscape.

Strategic Considerations for Investors in 2026

When evaluating these suburbs, investors should adopt a holistic approach, considering both immediate rental income and long-term capital growth potential. The Perth market is dynamic, and while historical data provides foundational insights, current market conditions, including interest rate movements, population influx, and government infrastructure spending, will continue to shape future performance.

Directly addressing you, the potential investor, it is crucial to move beyond headline figures. What matters is the property’s specific location within the suburb, its condition, and its appeal to the target demographic of renters. A property in a high-yield suburb that is poorly maintained or inappropriately priced for rent will not perform optimally. Conversely, a well-maintained, strategically located property in a slightly lower yield suburb might offer superior capital growth.

The current landscape strongly suggests that Perth remains a favourable environment for property investment, particularly for those who conduct thorough due diligence and align their investment strategy with the unique characteristics of specific suburbs. The “best” suburb for rental yield is ultimately the one that aligns most closely with your individual investment objectives, risk tolerance, and long-term financial goals.

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FAQs

What is rental yield and why is it important for investors?

Rental yield is the annual rental income expressed as a percentage of the property’s value. It is important for investors because it indicates the potential return on investment from rental properties, helping them assess profitability.

Which suburbs in Perth are expected to have the highest rental yields in 2026?

The top 10 suburbs in Perth with the highest rental yields in 2026 typically include areas with strong rental demand, affordable property prices, and good amenities. Specific suburbs can vary, but they often feature emerging neighborhoods and those close to employment hubs.

How is rental yield calculated?

Rental yield is calculated by dividing the annual rental income by the property’s purchase price, then multiplying by 100 to get a percentage. For example, if a property rents for $20,000 per year and costs $400,000, the rental yield is (20,000 / 400,000) x 100 = 5%.

What factors influence rental yields in Perth suburbs?

Factors influencing rental yields include property prices, rental demand, location, proximity to amenities and transport, economic growth, and demographic trends. Suburbs with affordable housing and strong tenant demand generally offer higher yields.

Are high rental yields always better for property investors?

Not necessarily. While high rental yields indicate good income potential, investors should also consider capital growth prospects, property condition, vacancy rates, and overall market stability to make well-rounded investment decisions.

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