Where to Invest in Perth in 2025: The Best Suburbs for Development Potential

If you’re looking for your next opportunity, here’s why proximity to the city, rezoning potential, and suburb selection matter more than ever and which northern & southern suburbs we believe offer the best development upside in 2025.

Why Location is Everything

Developments within 15–20km of the Perth CBD remain in high demand, especially those near:

• Train lines or freeway access

• Established schools and shopping hubs

• Walkable local amenities

Proximity to the CBD, the airport, and lifestyle features like cafes and coastal access matters more than ever.

Why the North Outperforms

The northern corridor continues to dominate for development in Perth, not just because of zoning and affordability, but because of location.

These suburbs offer unbeatable access to:

• The Perth CBD (as close as 3km in some pockets)

• Perth Airport (10-15 minutes away)

• Some of WA’s best beaches—Scarborough, Trigg, and North Beach

Whether you’re chasing entry-to-mid-tier subdivisions or premium infill projects, the north has options that balance lifestyle, returns, and long-term growth.

Top Northern Suburbs for Development

Entry to Mid-Tier Suburbs

These are ideal for investors, first-time developers, and those looking for strong returns with manageable capital outlay.

Balga / Westminster / Nollamara

• Zoned R40–R60 in many areas

• Strong rental demand and subdivision history

• 15 minutes to both city and coast

Yokine / Joondanna / Tuart Hill

• Closer in, around 6–8km to the CBD

• Gentrifying, high demand from young professionals and downsizers

• Great for stylish triplexes and boutique infill

Dianella (South/West)

• Balanced proximity to the city and Morley Galleria

• Future zoning potential

• Larger lots with subdivision flexibility

Premium Infill Suburbs

These locations are ideal for boutique builders or high-end investors who want to create something with long-term value and lifestyle appeal.

Mount Lawley

• Character-rich streets, cafes, and nightlife

• Strong owner-occupier demand

• Best suited for high-end duplexes or single luxury homes

North Perth

• Trendy, central, and in demand

• Architecturally inspired builds do well here

• Close to city, freeway, and Leederville lifestyle precinct

Mount Hawthorn

• Tight-knit community, family buyers, walkable streets

• High resale value, especially for turnkey homes

Note: These suburbs may include heritage overlays or stricter design guidelines. But if you get it right, the return and resale potential can be exceptional.

Our View on the South?

While there are a few southern suburbs worth considering, development opportunities are generally more limited. Smaller block sizes, tighter zoning, and longer distances from key infrastructure make the south harder to work with.

That said, if you’re set on going south, here are our top three picks:

• East Victoria Park – Great lifestyle appeal and solid zoning near the CBD

• Belmont - Younger crowd, renters and close to Crown/Optus stadium so there's always something going on.

• Carlisle - Bit more chill but still close to Vic Park which has buzzing café/bar scene.

• Bentley – High rental demand with a mix of student and young family tenants

• Willagee – Gentrifying suburb with larger blocks and infill potential

If you’re chasing lower entry prices in the southern corridor, these areas are worth watching, but be aware that zoning and long-term growth may be slower.

• Armadale – One of the cheapest suburbs in Perth with R15/R25 and R40 zoning in some pockets. Good for duplex/triplex if you buy right.

• Camillo – Close to Kelmscott/Champion Lakes, some larger blocks and solid rental yield.

• Thornlie – Mixed zoning (R20–R40) and older homes on subdividable lots. Close to new Metronet upgrades.

Still, at Perth Developments & Investments, we firmly prefer the northern corridor, offering superior location, better beach access and faster airport connections.

Thanks

Jeff kendall