Perth’s top performing suburbs for rental growth in 2021


It’s time for the big reveal – we look at the Perth suburbs that have experienced outstanding rental growth in 2021.

Some property investors seek capital growth. Others are looking for regular income. Regardless of which camp you fall into, there are significant benefits to selecting a property with strong rental growth potential. So which suburbs stood out for this factor in 2021?

Waterford wins in 2021!

As our table below shows, Waterford takes the gong for rental growth over the past 12 months, notching up an exceptional 48.75% growth in rents. It takes the suburb’s median overall rent to $595 weekly.

“When you look at the statistics, Waterford hasn’t just outperformed for rent, it’s also come up trumps for capital growth,” says Amanda Kroczek, Team Leader of our property management division. “This neighbourhood has seen values grow by 11.1% over the past 12 months – and by 44.6% over the last decade. Capital growth plus rental growth is an important combination in the property market.”

According to Amanda, Waterford’s strong results are being driven by increased demand from university students – the suburb is near Curtin University, coupled with demand from families looking for the amenity of surrounding green space plus proximity to the river.

The second strongest-performing suburb – Kallaroo, has seen rents rise 39.51% in the past year, taking median weekly rent to $670.

Amanda explains, “Kallaroo enjoys strong demand among tenants looking for proximity to the beach, and it offers the added appeal of nearby Whitfords City Shopping Centre. The suburb boasts good transport links to the city, it’s close to marinas, and within walking distance to shopping precincts – all factors which hold strong appeal with tenants.”

Beaconsfield takes out third place, notching up rental increases of 31.27% in the 12 months to November 2021. Like all top 10 suburbs, Beaconsfield has a wafer-thin vacancy rate, and it’s also fared well from a capital growth perspective.

“There’s a lot for investors to love about Beaconsfield,” says Amanda. “Proximity to the beach, Fremantle CBD and key education institutions like South Metro TAFE, make this a popular choice among tenants.”

What lessons can we take from Perth’s top suburbs for rental growth?

Perth’s top performing neighbourhoods for rent growth in 2021 share a number of physical attributes. These include proximity to:

  • Employment hubs – including Perth CBD, West Perth, Joondalup and Welshpool
  • Education institutions such as Curtin University and Edith Cowan University Joondalup
  • Waterfront areas including the river and ocean
  • Green zones such as golf courses and parklands

However, the key takeaway – with the possible exception of Northbridge which still faces significant levels of oncoming stock and a smaller owner-occupier demographic, is that robust rent growth is coupled with strong capital growth.

Momentum Wealth’s General Manager, Jennifer Wakeman, explains, “This is a win-win for investors – robust rental performance may help properties in the top performing locations become positively geared over the longer term. This supports a positive cashflow and can assist with an investor’s reduction of debt.

“Yet these same neighbourhoods are also benefiting from impressive uplift in values. Rising rent plus healthy capital gains don’t always work in tandem. But it’s happening in these suburbs, and the uptick in values gives investors more opportunities to leverage increasing equity to build their property portfolios.”

Jennifer says the results act as an important reminder to investors on the long-term benefits of the right suburb selection.

“It just shows that buyers who make an informed decision about where they invest can benefit from a stronger performance in all aspects – combined, these factors set investors well-ahead when it comes to expanding their portfolio sooner, and ultimately achieving greater long-term wealth.”

“It’s also why we believe the property acquisition and property management process should go hand-in-hand; investors need to be factoring in what’s going to hold appeal to tenants when they’re acquiring properties, which is one of the major benefits we see in having our buyer’s agents and property managers work together to inform the purchase process for our clients.”


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