PERTH’S southern suburbs are the ones for investors to watch in 2020, according to Reiwa.
Medina, Armadale and Parmelia are the standout performers in its top 10 list of areas where properties leased faster than the metro average of 28 days and had high rental returns last year.
Reiwa president Damian Collins said with the Perth property market starting to show signs of improvement, there were some great investment opportunities.
“With interest rates at record lows, many of these properties are likely to be positively geared,” he said.
“There are a lot of contributing factors that make a good investment property, however suburbs that have a high rental yield such as Medina, which had a 7.5 per cent rental yield and lower than average days to lease, are ones to consider.
“It took approximately 17 days for a property to lease in Medina, which is well below the Perth average, and demonstrates the suburb is in high demand by tenants.”
Investors needed just 14 days on average to find a tenant in Parmelia, which had a yield of 5.6 per cent.
Armadale had a higher yield at 6.2 per cent, but it took an average 27 days for properties to lease – the same time as Port Kennedy and Clarkson.
Clarkson, with a yield of 5 per cent, and Banksia Grove, with a yield of 5.6 per cent and tenants snapping up a property in an average 25 days, are the only northern suburbs to feature.
The suburbs’ lifestyle, popularity and future growth were not considered.
Perth’s vacancy rate is 2.3 per cent.