Last week we explored the top 10 Perth suburbs where houses generated high rental yields in the year to April 2018.
But, perhaps you are a property investor who wants to sub-divide or invest in a block of units rather than a house?
If you are considering investing in units, this sequel will give you the information you need to know about suburbs where units produced high rental yields for investors.
To refresh your memory, a rental yield refers to 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. A high yield means good annual returns for investors.
The 10 Perth suburbs with the highest unit rental yields
Glendalough tops the list with a rental yield of 5.9 per cent. Situated between Lake Monger and Herdsman Lake, Glendalough is a small suburb within the City of Stirling. Glendalough’s median unit sale price sits at $243,250 and investors in the area can expect a median unit rent price of $275 a week.
It took an average of 49 days for investors to lease a property in Glendalough, which is three days quicker than the Perth Metro region.
Following closely behind Glendalough is the coastal suburb of Rockingham, which has a rental yield of 5.8 per cent and a median weekly unit rent price of $270. Located 40 kilometres south of Perth, Rockingham offers beautiful beaches, a range of amenities, recreational facilities and has an affordable median unit price of $242,500, which makes this suburb an excellent opportunity for investors.
Nollamara produced a rental yield of 5.6 per cent in the year to April 2018. Situated just 10 kilometres north of Perth, Nollamara’s close proximity to the Perth CBD makes it an ideal hotspot for investors. With a median unit sale price of $296,000, investors in the area are receiving a median rent price for their unit of $320 per week.
4. Queens Park
Queens Park, like Nollamara, has a rental yield of 5.6 per cent. Investors who are looking to purchase a unit in Queens Park can expect a median weekly rental price of $310. Queens Park has a median house price of $288,000 and it takes approximately 50 days to lease a property in the area, which is the fastest leasing time of all the suburbs on the list.
Coming in at number five is Belmont, with a rental yield of 5.3 per cent. The median price buyers are paying for a unit in Belmont is $315,000 and landlords can expect a median weekly rental return of $320. Located just six kilometres east of Perth, Belmont has a number of recreational facilities, schools and a thriving shopping hub.
Next on the list is Midland, recording a rental yield of 5.2 per cent in the year to April 2018. The median unit sale price in Midland is $281,000 and local investors are receiving a median weekly unit rent price of $280. Situated 17 kilometres from Perth, Midland offers a good supply of commercial and recreational establishments.
Innaloo makes this list with a rental yield of 5.1 per cent for the year to April 2018. Innaloo is situated 10 kilometres from Perth City and is close to beaches and major shopping and retail facilities. The median unit price in Innaloo currently sits at $405,000 and investors in the area are charging a median unit rent price of $400 per week. Innaloo has the fastest leasing days out of all the suburbs on the list, taking an average of 47 days for landlords to secure a tenant for their rental.
Next on the list is Rivervale, which produced a rental yield of 4.9 per cent in the year to April 2018. A popular inner-city suburb among families, Rivervale’s median weekly unit price is $330 and its median unit sale is $349,475. Situated just five kilometres east of Perth City, Rivervale has experienced significant growth in recent years, making it a prime investor location.
Located 10 kilometres from Perth, Balcatta takes out ninth position with a rental yield of 4.8 per cent. The median unit sale price in Balcatta is $355,000 and tenants in area pay a median unit rent of $330 per week. Balcatta is well-known for its recent unit developments, which may contribute to it taking an average of 56 days to lease a property as there are more on offer in the area.
Rounding out the top 10 is Cannington, with a rental yield of 4.8 per cent. Cannington’s median house price is $345,000 and tenants who rent a unit in the area are paying a median price of $320 a week. It took Cannington landlords an average of 54 days to secure a tenant for their rental in the year to April 2018. Cannington offers a mixture of retail and recreational facilities, and is home to the Westfield Carousel shopping centre.