Key takeaways

• The picks: Ten suburbs across Perth's inner-ring, south-eastern, northern and southern corridors, with house medians from $732,500 to $1,291,500 and unit medians from $536,675 to $1,082,500.
• Who they suit: Investors looking for growth-led returns with income support, ranging from entry-level buyers to those with larger budgets targeting prestige locations.
• Market conditions: Perth values rose +20.5 per cent over the year to July 2026 but eased -0.3 per cent in the quarter, with listings recovering and buyers taking more time than a year ago.
• The forecast: Forecasters agree on continued growth in 2026, with big-four bank estimates spanning +5 per cent to +13 per cent, though the pace is clearly easing from recent highs.
• The trade-off: Yields across most picks are thin, so returns depend heavily on prices continuing to grow as forecast.

Why invest in Perth now?

Perth has spent the past few years as the strongest-performing capital in the country. The pace has clearly eased, but the fundamentals that drove that run have not gone away. For investors, a more balanced market means more choice, more time, and better negotiating room than was available twelve months ago.

Cotality's Home Value Index put Perth dwelling values up +20.5 per cent over the twelve months to July 2026, though the quarterly reading has turned: values slipped -0.3 per cent in the quarter to July. The city's gross rental yield sits at 3.8 per cent on the same Cotality figures.

Behind the numbers, Greater Perth's population is growing at +2.4 per cent a year, double the rate of regional WA, and the 2026-27 State Budget committed a record $4.7 billion to housing. Three interest rate rises earlier in 2026 and post-Budget tax changes are cooling demand at the edges, and that is reflected in the figures.

The rental market is still very tight. REIWA's figures put the median weekly house rent at $730 and unit rent at $700 in the March quarter, both at or near records. SQM Research put the vacancy rate at 0.6 per cent in July 2026. At that level, almost nothing is sitting empty, which means finding a tenant is rarely the hard part here: the entry price is. Louis Christopher, Managing Director at SQM Research, said Perth continues to record "very limited rental availability."

REIWA president Suzanne Brown described "a clear change" in the June quarter, with buyers pulling back and listings returning to long-term averages after a shortage in late 2025. Well-priced homes are still moving; others are taking longer. Conditions vary sharply suburb by suburb.

A free property report gives you a suburb-level rundown before you act: recent comparable sales, average days on market, suburb statistics and an estimated value, at no cost and with no obligation.

Perth property market forecast and price predictions 2026

Perth property market predictions for 2026 cluster on continued growth, though forecasters differ on how much. REIWA expects house prices to rise by more than +10 per cent and units by +15 to +20 per cent, and still sees the median house price reaching $1 million by year end. PropTrack tips Perth and Brisbane to lead the capitals with growth of around +7 to +10 per cent.

The big four banks all forecast growth for 2026, but the range is wide. Westpac is the most bullish at +13 per cent, CBA at +12 per cent, ANZ at +8.3 per cent and NAB the most conservative at +5 per cent. For 2027, ANZ expects a fall of -3.1 per cent while CBA, Westpac and NAB all forecast further growth.

The main drivers are population growth, tight rental supply and relative affordability against the eastern capitals. Interest rates are the key headwind: all four banks expect the next cash rate move to be a cut to 4.1 per cent, though none expects it before mid-2027, according to Canstar. That keeps borrowing costs elevated for anyone buying now, which means the investment only pays off if prices grow as forecast.

Wherever you land on the timing question, seeing more of the market before committing is worth doing.

OpenAdvantage is OpenAgent's buyer network: it gives you early access to thousands of off-market properties, homes whose owners are ready to sell but haven't listed publicly yet, at no cost.

How we chose the best suburbs in Perth

OpenAgent's data team ranks suburbs using a scoring model built on sales and rental records. The model is growth-led: 12-month and five-year price growth do most of the work, with days on market, listings volume and rental yield each contributing a smaller amount.

The rankings use sales and rental data for the 12 months to 30 June 2026. Growth figures compare that period with the previous 12 months and the equivalent period five years earlier. Each suburb is ranked on its stronger property type, house or unit.

A few honest caveats: gross rental yield is an estimate based on all properties in a suburb, not only rented ones. Suburbs with fewer than about 30 sales are excluded. Some datapoints are omitted where data is too limited to be reliable.

General information only, not financial advice. Figures are estimates and past performance is not a reliable indicator of future results. Always seek independent advice.

Perth's best suburbs to invest in 2026

Ten suburbs make this list, five houses and five units. Each is profiled individually after the comparison table. Across the picks, stronger growth tends to come with thinner yields, and the best income returns sit where recent price gains have been more modest.

Source: OpenAgent data.

1. Kenwick 6107

Kenwick is a well-established suburb about 16 kilometres south-east of the Perth CBD, close to Maddington and within easy reach of the Tonkin Highway. It has a practical, unpretentious character. Families and trades workers have long been drawn to its affordable detached housing and proximity to employment corridors.

The median price rose +26.5 per cent over the past year to $831,000, and homes are selling in 28 days, down from 40 a year ago, meaning buyers are moving noticeably faster.

The gross yield of 4.1 per cent sits above the city-wide average of 3.8 per cent, so it is pulling a little more income than most of Perth. Five-year growth of +139.8 per cent is the strongest five-year growth of the ten picks, a record that points to durable underlying demand rather than a single hot year.

• Strengths: An exceptional long-run growth record, paired with above-average rental income and a fast-moving market.
• Risks and considerations: No year-on-year listings comparison is available, making it harder to read whether supply is tightening or easing.
• Best suited for: Growth-focused investors who also want a meaningful rental return over a long hold.

2. Glen Forrest 6071

Glen Forrest sits in the Perth Hills, about 30 kilometres east of the city near Mundaring, with a bush-residential character that draws owner-occupiers looking for space and tree cover. Prices jumped +33.6 per cent over the past year to $1,291,500, the strongest twelve-month growth of the five house picks, and its median is the highest of the ten picks.

Listings fell -19.2 per cent compared with a year ago, and homes are selling in 22 days, unchanged from the year before. The gross yield is 3.2 per cent, the thinnest of the house picks.

• Strengths: Exceptional recent price growth in a tightly supplied market where demand has stayed firm.
• Risks and considerations: A demanding entry price combined with thin rental income means the investment relies on continued price appreciation.
• Best suited for: Capital-growth investors with a larger budget who can carry a low yield over a long hold.

3. Maddington 6109

Maddington sits about 17 kilometres south-east of Perth, next to Kenwick, with established housing, good arterial road access and a solid tenant pool. Prices rose +21.6 per cent over the past year to a median of $760,000, and homes are selling in 26 days, down from 31 a year ago.

The gross yield is 4.7 per cent, and listings fell -8.3 per cent over the past year. Five-year growth of +130.7 per cent rounds out a strong long-run record.

• Strengths: A compelling combination of solid recent growth and one of the better rental yields on the list.
• Risks and considerations: High listing volumes mean more competition when it comes time to sell, and buyers currently have more room to negotiate than in tighter markets.
• Best suited for: Investors who want both income and growth, comfortable with a suburb where supply is relatively plentiful.

4. Girrawheen 6064

Girrawheen is a northern suburb about 17 kilometres from the CBD, sitting between Koondoola and Marangaroo with easy access to Mitchell Freeway on-ramps. It is an affordable, multicultural area with a strong rental pool and buyers are still moving quickly, with homes selling in 30 days, down from 38 a year ago.

Twelve-month growth of +18.3 per cent is the weakest of the ten picks, though the five-year record of +137.4 per cent shows the suburb's long-run case remains intact. Listings rose about +9.8 per cent compared with a year ago, and the gross yield of 4.4 per cent adds a meaningful income component.

• Strengths: Strong long-run growth record and a solid rental yield, in an affordable suburb where buyers are still transacting quickly.
• Risks and considerations: Recent growth has lagged the other picks, and rising listing volumes mean sellers face more competition.
• Best suited for: Yield-oriented investors who value affordability and a long track record over headline recent growth.

5. Wembley 6014

Just five kilometres from the city, Wembley is an inner-western suburb with tree-lined streets, a lively café strip and a mix of post-war homes and newer apartments. The median unit price rose +29.3 per cent over the past year to $536,675, the lowest entry price of the ten picks, and the five-year gain of +102.5 per cent shows this is not a new story.

Listings fell about -26.2 per cent compared with a year ago, and homes are selling in 25 days, down from 33. The gross yield is 5.7 per cent, which makes the income case here as strong as the location one.

• Strengths: Strong rental income and tightening supply, close to the city at an accessible entry price.
• Risks and considerations: Sharp recent growth means the entry price advantage could erode quickly if momentum continues.
• Best suited for: Entry-level and yield-focused investors who want inner-city access without a premium price.

6. Tuart Hill 6060

Tuart Hill is a compact inner-northern suburb a few kilometres from Stirling city centre, with a walkable feel, a strong café strip and a mix of older units and newer apartment stock that draws young professionals and downsizers. The median rose +28.6 per cent over the past year to $730,000, and homes are selling in 15 days, down from 20 a year ago, the shortest of the ten picks.

The gross yield is 4.8 per cent, solid for a suburb this close to the city. A prior-year listings comparison is unavailable, so supply-trend visibility is limited, and five-year growth of +105.3 per cent supports the long-run case.

• Strengths: Fast-selling inner-ring location with strong recent growth and a competitive yield.
• Risks and considerations: No year-on-year listings data means supply-trend conditions are harder to read than for other picks on the list.
• Best suited for: Growth and income investors wanting inner-ring Perth exposure below the premium price points elsewhere on the list.

7. Spearwood 6163

Spearwood sits in Perth's southern corridor, about 17 kilometres from the city near Cockburn Central, with easy freeway access and coastal amenity close by. The median rose +25.7 per cent over the past year to $650,000, and five-year growth of +119.2 per cent is the strongest of the five unit picks.

Homes are selling in 34 days, down from 39 a year ago, and the gross yield is 5.7 per cent. Twelve-month growth of +25.7 per cent is the weakest of the five unit picks, though the income figure tempers that.

• Strengths: Exceptional long-run capital growth, backed by a strong rental return for a suburban unit market.
• Risks and considerations: The most modest recent price growth among the unit picks, and a small transaction pool means the median can shift on limited sales.
• Best suited for: Yield-focused investors who are also happy to hold for long-run capital growth.

8. Applecross 6153

Applecross is one of Perth's premium riverside suburbs, about 10 kilometres south of the city on the Canning River, with leafy streets, river views and a strong owner-occupier base. The median rose +33.6 per cent to $1,082,500, the strongest of the five unit picks, and it carries the highest entry price of the five unit picks.

Homes are taking 55.5 days to sell, down from 61 a year ago, and listings rose +24 per cent compared with a year ago. The gross yield is 3.2 per cent, the thinnest of any unit on this list, so the rent covers a modest share of the costs of owning.

• Strengths: Outstanding recent price growth in a prestige riverside location with consistently strong owner-occupier demand.
• Risks and considerations: A longer selling period than most picks, rising supply and a thin rental yield mean this is a slow, patient play.
• Best suited for: Long-term capital-growth investors comfortable with a premium entry price and limited short-term rental income.

9. Stratton 6056

Stratton is a quiet family suburb in Perth's north-eastern corridor, about 25 kilometres from the city near the Swan Valley, and one of the areas drawing buyers priced out of closer-in markets. The median rose +20.1 per cent over the past year to $732,500, the lowest entry price of the five house picks.

Homes are selling in 26 days, unchanged from a year ago, and listings fell -11.1 per cent compared with a year ago. Five-year growth of +128.9 per cent backs a solid long-run record, and the gross yield sits at 4.7 per cent.

• Strengths: The most accessible entry price among the house picks, paired with strong long-run growth and a healthy yield.
• Risks and considerations: Selling pace has held flat over the past year, suggesting demand is steady rather than accelerating.
• Best suited for: Entry-level investors who want a house pick without stretching to the higher medians elsewhere on the list.

10. Osborne Park 6017

Osborne Park is an inner-northern suburb about seven kilometres from Perth's city centre, wedged between Stirling and Innaloo. Primarily commercial and mixed-use, its apartment market draws renters and investors who want proximity to the city at a mid-range price.

The median rose +29.4 per cent over the past year to $634,000, and listings fell -30.5 per cent compared with a year ago. Homes are now selling in 23 days, down from 36, and the gross yield sits at 4.5 per cent against a median weekly rent of $550, the lowest median rent of the ten picks.

• Strengths: Strong recent price growth backed by sharply falling supply and a fast-moving market.
• Risks and considerations: Rental income here is thinner than the yield alone suggests once weighed against the entry price.
• Best suited for: Growth-focused investors who want inner-ring unit exposure at a mid-range price and can carry a modest rental return.

The bottom line

Perth is still a growth market in 2026, with forecasts ranging from +5 to +13 per cent, but the pace has clearly eased and conditions vary sharply by suburb.

The picks that screened best share a common thread: tight supply, fast-moving sales and demand that has held up even as listings return. The honest counterweight is that elevated interest rates mean borrowing costs are high, and the investment pays off only if prices grow.

Start with a free property report before you commit to any suburb on this list.