Perth's Highest-Yield Suburbs Sit Outside the Premium Belt

Perth's 3-bed house yields sit around 4.0% on the data we hold, but that headline figure hides a wide range across the metro. The top-ranked suburb in this dataset, PERTH (Unknown) - Central, runs at 4.0% on a tenanted long-term rental at a sale price of $776,814, while Perth's premium coastal and western suburbs typically deliver yields several points below the city median.

Perth's Single-Row Picture in This Dataset

Gross yields = annual income / sale price. Based on 3-bed house medians. The dashboard shows every property type and bedroom count.

Affordability Drives Perth's Top-Yielding Suburbs

Perth's yield leaders typically cluster along outer-corridor housing where prices sit below the metro median. The outer northern and southeastern corridors share the same underlying pattern: sale prices sit well below the Perth median while weekly rents hold up reasonably well thanks to commuter demand from families priced out of inner suburbs and renters who need 3-bed houses with yards rather than apartments. When rent does not fall as fast as sale price, gross yield rises.

PERTH (Unknown) - Central illustrates the dynamic. At $776,814 with weekly rent around $594, the resulting yield of 4.0% reflects steady tenant demand against a moderated capital base. The short-term rental yield for the same suburb sits at 6.9%, which is notable on paper but generally requires consistent occupancy to hold up against the higher cost base of furnishing, Airbnb fees, cleaning, and turnover.

Whether a high-yield Perth suburb suits short-term rental or long-term rental depends on what drives demand there. Outer northern coastal suburbs attract some weekend and summer tourist demand and can support a holiday rental thesis. Inland southeastern suburbs lean almost entirely on long-term tenant demand from families and shift workers; they are not tourist destinations and short-term rental occupancy in those areas is typically thin. The dashboard's short-term rental scoring incorporates these demand differences at the suburb level.

The Yield-Price Trade-Off Is Sharp in Perth

The inverse relationship between price and yield is unmistakable across the Perth metro. Premium suburbs in the western coastal belt and along the Swan River frontage trade at multiples of the city median while their weekly rents do not scale at the same rate. Buyers in those suburbs pay for amenity, school catchments, beach access, and long-run capital growth, not for income. The result is a noticeable yield drag compared with affordable outer-corridor suburbs.

An investor entering at $776,814 faces a very different capital-risk profile to one buying at the Perth median of $776,814, let alone the prices commanded in the western suburbs which routinely exceed two million dollars for established 3-bed houses. The lower entry point limits absolute capital exposure and improves cash-on-cash returns; the higher-priced premium suburb commits substantially more capital but has historically delivered stronger long-term appreciation in tightly-held pockets where supply is genuinely constrained.

Premium Suburbs Trade Yield for Liquidity and Growth

For context, here is how some of Perth's most established and in-demand suburbs compare. These are areas where investors typically accept lower yields in exchange for capital growth, lower vacancy risk, and easier resale liquidity.

High-demand suburbs for context. Same methodology as the yield ranking above.

Premium suburbs typically yield less on a long-term-rented basis because buyers price in amenity, lifestyle, and growth expectations rather than current income. Some premium coastal pockets do show stronger short-term rental yields because nightly rates rise faster than long-term rents in tourist-attractive locations, particularly in summer and during major Perth events. Whether the lift is enough to justify the higher capital outlay depends heavily on occupancy, which the dashboard models using actual market data rather than aspirational assumptions.

What This Ranking Cannot Tell You

The yield ranking is a starting point, not a verdict. A high yield can mean depressed sale prices rather than strong rents. Investors should check the price trend as well as the headline yield before drawing conclusions; Perth's mining-influenced economy has produced sharp price corrections in past cycles in some outer suburbs, which can flatter current yields without suggesting future income reliability.

Capital growth is the second omission. Premium suburbs that yield less on a gross basis can still deliver superior total returns once long-run capital appreciation is added, particularly in tightly-held inner suburbs where supply is genuinely constrained. Vacancy risk also varies: thinner rental pools in some outer suburbs mean longer vacancy gaps when a tenant leaves, which a 12-month gross yield figure does not capture. Medians can also lag in fast-moving suburbs, especially during Perth's volatile cycles.

View Perth in the dashboard → Free preview · every bedroom count and property type

Perth Yields Sit Just Below the National Median

Perth's citywide gross yield of 3.9% sits relative to the Australia median of 4.0% and the Western Australia state median of 4.5%. The yield-leading suburb in this dataset sits roughly at the national figure and below the WA state median, while premium western suburbs trail both.

Negative Gearing Reshapes the After-Tax Picture

Australian tax rules let rental losses be offset against salary income, which changes the comparison between short-term and long-term rental for Perth investors on higher incomes. A long-term rental property running at a cash-flow loss in early years (mortgage interest exceeding rent) creates a deduction. The benefit scales with marginal tax rate: at the 45 percent top bracket (income above $190,000), every $1 of rental loss saves $0.45 in tax; at the 30 percent bracket ($45,000 to $135,000), it saves $0.30; at the 37 percent bracket ($135,000 to $190,000), it saves $0.37. A profitable short-term rental property does not benefit from negative gearing because there is no loss to offset.

Depreciation amplifies the effect for newer Perth properties. Two layers apply: the building depreciation allowance at 2.5 percent of the building's construction cost per year (for buildings less than 40 years old), and fixtures and fittings depreciation on items like air conditioning, carpets, ovens, dishwashers, and blinds. These are non-cash deductions that increase the on-paper loss without affecting actual cash flow. The 50 percent capital gains tax discount applies to properties held more than 12 months and treats short-term rental and long-term rental equally on disposal.

The practical implication: in Perth suburbs where short-term rental shows a higher pre-tax gross yield, the after-tax comparison can narrow or even reverse for high-income investors with strong negative gearing benefits on a long-term-rented property. The dashboard calculates after-tax cashflow including negative gearing, building depreciation, and marginal tax rate impact based on the salary you enter, so you can see how the tax treatment changes the comparison for your bracket.

Stamp duty applies to all Perth purchases at WA state rates and is a sizeable upfront cost; check the current schedule with your solicitor or conveyancer before budgeting. For peer markets with similar yield-versus-growth dynamics, Perth Apartments Outyield Houses on Short-Term Rental covers a comparable city and Western Australia Rental Investment Insights explores related suburb-selection trade-offs.

Verify current Western Australia state and local council short-term rental rules before investing; this is an active legislative area in Australia. The dashboard surfaces the regulatory status that applies in each suburb based on the latest data we hold. For methodology detail, see the market score methodology and data sources.

Data reflects market conditions as of May 2026.

This information is for educational purposes only and should not be considered financial or legal advice. Regulations and market conditions change frequently. Verify current rules with local authorities before making investment decisions.