There was high demand for rental properties on reiwa.com during Perth's very wet winter this year.
If you are considering buying a rental property, knowing where tenants are looking is an advantage and can help narrow your search.
Mandurah tops the list
The family friendly tourist hotspot, Mandurah, tops the list as the most viewed suburb for rent during winter on reiwa.com.
Next on the list was Ellenbrook, Baldivis, Midland, Joondalup and Willetton.
Tenants were also looking for rentals in Canning Vale, Scarborough, Armadale and Fremantle during winter.
This top 10 list reveals that tenants are looking to every corner of Perth, with Mandurah in the south, Joondalup in the north, Ellenbrook in the east and Scarborough on our west coast..
These suburbs offer an eclectic lifestyle mix. On the one hand, you have coastal suburbs like Fremantle and Scarborough which have higher median prices and are more desirable due to their popular beaches and bustling café strips.
Then, on the other hand you have the inland suburbs like Midland and Ellenbrook which offer more relaxed lifestyles with more open space and are the gateway to the Perth Hills and Swan Valley wine region.
If you are an investor, the good news is that there is a clear need for rentals across all ends of the market.
Rental yield
As a property investor looking to maximise your returns, you should be keeping a close look at a suburb's rental yield.
Rental yield is the measure of how much rental income an asset is generating, as a percentage of the property's value. The rental yield is useful for indicating the potential return of an investment property. Of course, in addition to rental yield, expected
capital growth is also very important in assessing the investment merits of a property and a suburb.
Most of the suburbs on the most searched list are generating good rental returns, with Armadale topping the list with a gross rental yield of six per cent.
Midland is close behind, with a rental yield of 5.8 per cent, followed by Mandurah (5.7 per cent), Baldivis (5.0 per cent) and Ellenbrook (4.9 per cent).
Rental yields are currently quite healthy in WA, with the Perth median gross house rental yield sitting at 4.5 per cent, compared to 2.6 per cent in Sydney and 2.9 per cent in Melbourne.
Working from home trend
Prior to the pandemic, it was very common for tenants to seek rentals that were as close to the Perth CBD as possible, making it easier to get to work or commute. Now, as the working from home trend continues to be the new 'norm' for many workplaces,
some tenants are seeking rentals elsewhere and opting for lifestyle over convenience.
The top 10 most viewed suburbs in winter
| SUBURB | MEDIAN RENT PRICE | GROSS RENTAL YIELD |
|---|
| 1. Mandurah | $320 | 5.7% |
| 2. Ellenbrook | $380 | 4.9% |
| 3. Baldivis | $400 | 5.0% |
| 4. Midland | $320 | 5.8% |
| 5. Joondalop | $383 | 4.1% |
| 6. Willetton | $460 | 3.6% |
| 7. Canning Vale | $460 | 4.1% |
| 8. Scarborough | $460 | 3.8% |
| 9. Armadale | $300 | 6.0% |
| 10. Fremantle | $480 | 4.1% |
| Greater Perth | $410 | 4.5% |
*Data is for dwellings for June, July and August 2021 and is REIWA copyright. All rights reserved.
More information
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