Coastal WA suburb sees rental yields rising

Figures from the Real Estate Institute of Western Australia put Perth’s overall rental vacancy rate at 2.8 per cent over the December 2018 quarter, a five-year low.

According to Richard Cull, estate manager for Capricorn Beach estate, a rental vacancy rate under 3 per cent translates to upward pressure on the rental market.

“Rental yields in Perth are now starting to rise and the latest CoreLogic figures for December 2018 shows that rental yields in Perth are now 4.1 per cent, which is now much higher than Sydney at 3.3 per cent and Melbourne at 3.5 per cent,” he said.

However, he added that certain suburbs, like Yanchep, are delivering even higher returns.

“In property hot spots such as Yanchep, astute investors can achieve rental returns of at least 5 per cent.”

Mr Cull said a rental shortage is already occurring in Yanchep, with the demand for rental properties expected to rise even further following the completion of new infrastructure projects, such as the Yanchep to Perth railway line, an upcoming shopping centre and tavern precinct, as well as the completed secondary college that opened last year to complement Yanchep Beach Primary School.

Property priced at approximately $300,000 can achieve weekly rents of between $300 to $340, and investors are also able to apply for tax benefits when purchasing a new property, Mr Cull added.