Top Suburbs for Rental Yield in WA
An investment property’s success partly relies on where it’s located. As a property investor, understanding local market trends and figuring out which suburb has the best potential can be difficult. There are a few areas where rental yield is higher than the rest of the state. When investing in Western Australia, consider these high rental yield suburbs:
Why invest in Western Australia real estate?
Western Australia is quickly becoming a top choice for those investing in real estate due to its rising property values, low vacancy rates, and growing population. More people are flocking to Perth and the rest of the state because of the steady local economic growth and expanding job market.
Another driving factor for people moving to WA could be the cost of living. Median house prices in Perth are lower compared to other capital cities, making it an ideal and affordable place for many. With a growing population comes more opportunities for property rental investment.
Experts are predicting that WA’s property market will continue to grow, but not at such a rapid pace as it did in 2024. However, rate changes and other economic factors may affect real estate trends.
Suburbs in Greater Perth with the highest rental yield
Perth has seen great rental returns for investors due to low vacancy rates of 2.5% (as of March 2025). In terms of real estate growth, Perth saw a 21% increase in home values across the board compared to the same time last year, according to CoreLogic’s latest numbers.
The limited property supply in the state also helps boost the value of rental properties as the demand remains strong. According to REIWA real estate forecasts, property prices in Perth are expected to go up between 5% to 10%, and if interest rates decline even further, we may see more market activity.
Highest house rental yield suburbs in Greater Pert
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Leda | Perth – South West; | 5.9% | $588 |
| Midvale | Perth – North East | 5.7% | $674 |
| Calista | Perth – South West | 5.6% | $543 |
| Hilbert | Perth - South East | 5.6% | $637 |
| Medina | Perth - South West | 5.5% | $539 |
| Balga | Perth - North West | 5.4% | $628 |
| Haynes | Perth - South East | 5.4% | $633 |
| Brookdale | Perth - South East | 5.4% | $599 |
| Armadale | Perth - South East | 5.3% | $575 |
| Camillo | Perth - South East | 5.3% | $591 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
The top suburbs for house rental yields are mostly in Perth’s South West and South East regions. Rental yield percentages are above 5%, the lowest being 5.4% and the highest 5.9%, which is generally considered a good yield.
It's worth noting that although Leda is the suburb with the highest yield for houses in Greater Perth, its median rental value is only $588. Meanwhile, Midvale has the highest median rental value at $674 with a 5.7% rental yield, but is only the second highest in overall gross.
Highest unit rental yield suburbs in Greater Perth
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Orelia | Perth - South West | 7.9% | $456 |
| Glendalough | Perth - Inner | 6.8% | $566 |
| Ascot | Perth - South East | 6.7% | $661 |
| Cockburn Central | Perth - South West | 6.7% | $583 |
| Northbridge | Perth - Inner | 6.6% | $687 |
| Perth | Perth - Inner | 6.6% | $688 |
| Kelmscott | Perth - South East | 6.6% | $550 |
| Spearwood | Perth - South West | 6.6% | $590 |
| East Perth | Perth - Inner | 6.5% | $739 |
| Midland | Perth - North East | 6.5% | $543 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
The highest unit rental yield suburbs in Greater Perth follow a similar trend to houses. A majority of the suburbs on the list can be found in the South West and South East regions. The top rental yields for units in Greater Perth are 1% to 2% higher than houses.
The top suburb for units in Greater Perth is Orelia by far, with 7.9%; however, it does not have the highest median rental value, with only $456 (lower than any suburb in the area). The suburb with the biggest median rental value goes to East Perth with $739, but it’s also the suburb with the lowest rental yield for units.
Suburbs in Regional Western Australia with the highest rental yield
The rental yields in Regional WA are far higher compared to those in Greater Perth. According to CoreLogic, Regional WA has seen a 15.5% rise in home values. This could explain why the median rental values and rental yield percentages are as high as they are.
Other factors that could have played a role are relatively lower property values, making it easier for property investors to get a higher return on investment, the potentially higher demand for certain properties, and less competition compared to larger metropolitan areas.
Highest house rental yield suburbs in Regional Western Australia
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Derby | Outback (North) | 12.1% | $569 |
| Kambalda West | Outback (South) | 12.1% | $408 |
| Newman | Outback (North)y | 11.8% | $671 |
| South Hedland | Outback (North) | 11.5% | $965 |
| Nickol | Outback (North) | 10.9% | $1,158 |
| Millars Well | Outback (North) | 10.6% | $1,102 |
| Pegs Creek | Outback (North) | 10.4% | $1,014 |
| Bayntony | Outback (North) | 10.3% | $1,301 |
| Bulgarra | Outback (North) | 10.2% | $985 |
| Kununurra | Outback (North) | 9.9% | $716 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
Outback (North) dominates the highest house rental yield list, with almost all of the suburbs coming from that region. Kambalda West and Derby share the highest rental yield with 12.1%. The lowest rental yield percentage is in Kununurra at 9.9%, but it’s still considered an excellent rental yield.
In Regional WA, there’s a bigger disparity between median rental values. The lowest is in Kambalda West at $408, and the highest is in Baynton with $1,301; that’s a $893 difference. If you’re a property investor, you must pay close attention to these details as they may provide important context about the suburb.
Highest unit rental yield suburbs in Regional Western Australia
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Boulder | Outback (South) | 10.3% | $480 |
| Somerville | Outback (South) | 9.8% | $579 |
| Kalgoorlie | Outback (South) | 9.6% | $512 |
| South Kalgoorlie | Outback (South) | 9.1% | $529 |
| Geraldton | Outback (South) | 7.0% | $418 |
| Carey Park | Bunbury | 6.2% | $593 |
| Bunbury | Bunbury | 6.2% | $593 |
| South Bunbury | Bunbury | 5.5% | $524 |
| West Busselton | Bunbury | 5.2% | $579 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
When it comes to rental units, the suburbs with the highest yield can be found in Outback (South) and Bunbury. Median rental values of units in Regional WA are more consistent across suburbs compared to houses.
It’s interesting to note that the Bunbury region makes up for the bottom half of the list with rental yield percentages of 5.2% to 6.3%. Meanwhile, Outback (South) suburbs have significantly higher rental yields of between 7% to 10.3%.
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