Perth has emerged as a top destination for home buyers and property investors, offering a combination of affordability, lifestyle appeal, and long-term growth potential. With its strong economy, expanding infrastructure, and desirable coastal lifestyle, the city is attracting both first-home buyers and seasoned investors.
Choosing the right suburb is critical to maximising both quality of life and financial returns. This article will explore Perth’s top suburbs for home buyers and investors, covering affordability, lifestyle appeal, infrastructure developments, and future growth potential, while drawing relevant comparisons to Melbourne.
Perth’s property market presents a compelling opportunity due to its relative affordability compared to Melbourne and Sydney. While median house prices in Melbourne hover around $915,000, Perth’s median sits at approximately $630,000, making it an appealing option for home buyers and investors seeking value.
Key drivers of Perth’s real estate market include:
With these factors in mind, let’s explore the best Perth suburbs for home buyers and investors.
Median House Price: $500,000
Why Buy Here?: Baldivis offers an affordable entry point into the Perth market, making it ideal for first-home buyers. It boasts modern housing estates, quality schools, and easy access to the Kwinana Freeway.
Lifestyle & Amenities: Family-friendly parks, shopping centres, and proximity to Rockingham’s beaches.
Growth Potential: Ongoing residential developments and improved transport links suggest future capital appreciation.
Melbourne Equivalent: Comparable to Cranbourne, which also provides affordability and strong growth prospects.
Median House Price: $950,000
Why Buy Here?: With its stunning beaches, vibrant cafe culture, and new residential developments, Scarborough is a sought-after coastal suburb.
Lifestyle & Amenities: Surfing spots, nightlife, public transport, and proximity to the CBD.
Growth Potential: Strong demand and redevelopment projects enhance long-term capital growth.
Melbourne Equivalent: St Kilda, known for its beachside appeal and strong property demand.
Median House Price: $530,000
Why Buy Here?: Ellenbrook is a well-planned community with schools, parks, and upcoming train line connections improving connectivity to the CBD.
Lifestyle & Amenities: Family-oriented with shopping centres, sports facilities, and community hubs.
Growth Potential: The Metronet rail extension will boost accessibility and desirability.
Melbourne Equivalent: Caroline Springs, a master-planned suburb with strong infrastructure growth.
Median House Price: $1.2M
Why Buy Here?: A mix of character homes, trendy cafes, and cultural hotspots make Mount Lawley ideal for young professionals and families.
Lifestyle & Amenities: Well-connected to the CBD, with top schools and an artistic vibe.
Growth Potential: Increasing demand for well-preserved heritage homes maintains strong price appreciation.
Melbourne Equivalent: Fitzroy, a trendy inner-city suburb with historic appeal.
Median House Price: $1.3M
Why Buy Here?: Subiaco is known for its stylish living, excellent schools, and boutique shopping, attracting both families and professionals.
Lifestyle & Amenities: Close to the CBD, with parks, stadiums, and entertainment venues.
Growth Potential: Urban renewal projects continue to drive strong capital growth.
Melbourne Equivalent: South Yarra, a premium inner-city suburb with strong investment appeal.
Potential Challenges: High investor interest may drive prices up, and the rental market’s reliance on students and healthcare professionals could lead to seasonal demand fluctuations.
Median House Price: $700,000
Rental Yield: 5.5%
Why Invest?: Strong demand due to ECU university, hospital, and retail precincts.
Melbourne Equivalent: Clayton, home to Monash University and a strong rental market.
Potential Challenges: Some areas may face higher crime rates and socioeconomic challenges, potentially affecting long-term desirability for buyers.
Median House Price: $420,000
Rental Yield: 6.2%
Why Invest?: Low entry price and high tenant demand make it a solid investment.
Melbourne Equivalent: Frankston, an affordable area with future growth potential.
Potential Challenges: Older housing stock in some areas may require extensive renovations or redevelopment, adding to investment costs.
Median House Price: $550,000
Rental Yield: 5.8%
Why Invest?: Proximity to Perth’s CBD and ongoing commercial developments enhance appeal.
Melbourne Equivalent: Footscray, a rapidly gentrifying suburb with investment upside.
Median House Price: $750,000
Rental Yield: 5.2%
Why Invest?: Growth suburb with a mix of character homes and new developments.
Melbourne Equivalent: Maribyrnong, known for its riverside location and growing demand.
Potential Challenges: As a coastal suburb, Rockingham may experience seasonal demand fluctuations, potentially affecting rental consistency and property values.
Median House Price: $580,000
Rental Yield: 5.7%
Why Invest?: Beachside appeal, military base workforce, and ongoing infrastructure improvements.
Melbourne Equivalent: Seaford, offering coastal lifestyle with strong rental demand.
To better understand the differences between the two markets, here’s a quick comparison of key real estate statistics:
| Factor | Perth | Melbourne |
| Median House Price | $630,000 | $915,000 |
| Rental Yield | 5.3% | 3.6% |
| Vacancy Rate | 0.6% | 1.5% |
| Capital Growth (YoY) | 10.2% | 6.5% |
| Lifestyle Appeal | Beachside living, affordable suburbs, expanding infrastructure | Cultural hub, established amenities, higher property costs |
Affordability: Perth remains significantly more affordable than Melbourne, offering better value for home buyers and investors.
Rental Yields: Higher in Perth, making it a strong choice for investors seeking better returns.
Growth Trends: Melbourne traditionally experiences higher capital appreciation, but Perth is catching up due to increasing demand and infrastructure spending.
Lifestyle & Infrastructure: While Melbourne is known for its cultural attractions and established public transport network, Perth’s coastal lifestyle and ongoing infrastructure expansion make it an attractive alternative.
Perth offers a fantastic range of suburbs for home buyers and investors, from affordable family-friendly areas like Baldivis to high-growth hotspots like Scarborough and Subiaco. With strong rental yields, increasing demand, and ongoing infrastructure projects, Perth presents a compelling alternative to Melbourne’s pricier market.
If you’re considering buying or investing in Perth, Rise Property Buyers can provide expert guidance backed by in-depth market research and exclusive off-market opportunities. With a proven track record in securing high-growth properties, we help clients make data-driven investment decisions. Contact us today to gain a competitive edge in Perth’s property market!
