Perth's property market: a guide to future growth suburbs

Key takeaways:

• Perth has emerged as one of Australia's strongest property markets, with the median dwelling value reaching a record high of approximately $1,003,804 in early 2026—a significant milestone driven by a persistent housing shortage and Western Australia's nation-leading economic performance.
• Strategic infrastructure projects, such as the Metronet rail expansion, are fundamentally reshaping the city's growth map, significantly increasing the long-term capital potential of well-connected middle and outer-ring suburbs.
• Investment suburbs like Willagee, Forrestfield, and Piara Waters remain popular due to their relative affordability and strong rental yields, which are supported by a critically low vacancy rate that has consistently trended below 1.2% in high-demand zones.

Finding the right investment property can feel overwhelming, especially when you're faced with dozens of suburbs to choose from. If you're considering investing in Perth property, you're not alone in wondering which areas offer the best potential for long-term growth and solid rental returns.

This guide will walk you through why Perth is worth considering, what makes a suburb a good investment and highlight some future growth suburbs in Perth that investors are looking at today.

Why Perth?

Over the past few years, the Perth property market has been a star performer. In 2024, dwelling values rose 17.6%, according to PropTrack, making it the strongest-performing capital for that year by some margin.

In 2025, dwelling values have continued to grow. Since January, prices are up 11.9% to a median value of $865,000.

Several factors are driving this growth:

• Population growth: Interstate migration and overseas arrivals are adding to housing demand. According to the Australian Bureau of Statistics, Western Australia was the fastest-growing state in 2024, with the population up 2.4% over the year. 
• Rental market strength: Vacancy rates remain extremely low, consistently below 1.2% since mid-2020, according to SQM Research. Rental yields are among the highest of all capital cities.
• Housing shortage: Limited new supply means competition is high for both rentals and properties for sale.
• Economic resilience: Perth’s resources sector continues to underpin jobs and wages, giving buyers confidence in the local economy. CommBank’s State of the States report has ranked Western Australia as the strongest economic performer for four consecutive quarters. 
• Relative affordability: Compared with other capitals, Perth property is still seen as more affordable, drawing investors looking for value.

This value proposition is particularly evident when comparing the city to the eastern states, with several high-demand pockets still offering entry points well below the city's broader median. Many buyers are currently focusing on affordable suburbs in Perth 2026 like Medina and Parmelia, where detached housing can still be secured for under $650,000, providing a rare opportunity for first home buyers and budget-conscious investors.

Talk to a Loan Market Bal & Associates broker today to find out more about your borrowing capacity.

What makes a suburb a good investment?

If you’re looking at Perth suburbs with high growth potential, here are some of the key criteria to consider:

• Infrastructure projects: New transport links, shopping centres or community facilities can significantly boost a suburb's appeal and accessibility. Locations where there is significant public and private investment in infrastructure can be a good indicator of future growth. Major transport upgrades like Metronet are fundamentally reshaping the growth map by increasing the appeal of middle ring and outer suburbs. Detailed Perth property predictions for the next 5 years indicate that well located pockets near these new rail links could see property values more than double as population growth continues to outpace the delivery of new housing stock.
• Rental demand: Rental demand and low vacancy rates indicate a healthy rental market. Areas with consistently low vacancy rates suggest strong tenant demand, which translates to reliable rental income and potential for rent increases.
• Affordability: Affordability compared to neighbouring areas can signal future growth potential. Suburbs that offer good value relative to nearby established areas often experience price growth as buyers look for more affordable options, while still being within the same vicinity as more expensive neighbouring locations.
• Lifestyle and amenities: Suburbs with parks, cafes, shops and schools often attract long-term tenants and steady demand. School catchment zones also play a major role in determining demand amongst families.

For many families, these amenities are only as valuable as the security of the surrounding area. Researching the safest suburbs in Perth 2026, such as Churchlands or Carine, reveals that low crime rates and high community engagement are often the primary drivers of long term capital stability and consistent tenant demand in premium growth zones.

Top Perth investment suburbs

Here are three up-and-coming suburbs in Perth that investors are keeping an eye on:

Willagee

Located just 12km south of the CBD, Willagee has built a reputation as an affordable suburb. The suburb’s median house price was $975,000 at the end of August 2025 after 10.5% growth in the 12 months prior. Units are also affordable at $622,000 and have shown very strong growth, up 19.6% over 12 months.

Willagee has good access to the city, Fremantle, universities and beaches, and is served by several bus routes. With both Murdoch University and Fiona Stanley Hospital less than 7km away, it is a popular choice for students and healthcare workers. 

Forrestfield

Around 15km from the Perth CBD, Forrestfield is becoming increasingly popular with buyers and renters. According to the Real Estate Institute of Western Australia, Forrestfield has attracted more buyer attention in recent months than the overall Perth average.

Forrestfield’s appeal lies in its affordability. Its median house price is $729,000 after 13.9% growth over the last year. Units are also well-priced at $564,000, up 7.4% since the same time in 2024.

The suburb benefits from several retail options and its location near Perth Airport. The recent addition of the Forrestfield-Airport Link – a rail service connecting the international airport to Perth’s eastern suburbs – has been a major boost to the area.

Future infrastructure projects are expected to further improve connectivity, adding to its appeal as one of the Perth investment suburbs with good prospects.

Piara Waters

Located southeast of the Perth CBD, Piara Waters stands out as one of the fastest-growing suburbs in the region. Piara Waters’ median house value is around $845,000 and units are around $620,000.

The suburb is newer than the others on this list but offers good amenities and infrastructure. The Piara Village shopping centre, Piara Waters Primary and Senior Schools, as well as several green spaces, make it appealing for families and first home buyers.

Ongoing development and strong population growth support its position as one of the Perth suburbs with high growth potential.

How a broker can help

Securing the right finance for your Perth property investment requires expertise and market knowledge. Working with a mortgage broker provides access to a wide range of lending options that may not be readily available to individual borrowers.

At Loan Market, we work with a panel of more than 30 lenders, which means we can help you find a loan suited to your specific circumstances and investment goals. Our brokers understand the ins and outs of investment property lending and can guide you through the process of determining your borrowing capacity.

Investment property loans often have different criteria and requirements compared to owner-occupier loans. A broker can help you navigate these differences and structure your finance in a way that supports your long-term investment strategy.

Making your next move

Finding the right investment property and securing appropriate finance is a personal decision that depends on your individual goals, risk tolerance and financial circumstances. 

Perth is home to a number of up-and-coming suburbs that investors are watching closely, from affordable areas to those with strong rental demand. The key is identifying which characteristics align best with your investment objectives.

Ready to explore your investment property options? Contact a Loan Market broker in Welshpool today to discuss your borrowing capacity and discover loan options that could help you secure your next investment property in Perth's growing suburbs.