Bayswater WA Property Investment

Bayswater · 6053 · Score: 70/100 · Buy

Median House Price
$1.20M
Rental Yield
3.4%
Vacancy Rate
0.9%
Median Weekly Rent
$775/wk
Median Unit Price
$776K
Population
15,288
Days on Market
18 days
Annual Growth
17.6%

Bayswater Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$157.11/night
Occupancy Rate
41.99%
Est. Annual Revenue
$24K
AI Investment Analysis

Bayswater WA Investment Brief

BUY3.4% gross yield on a $1,200,000 median.

THE MARKET

Bayswater has compounded at 2.2%/yr over 5 years — a house that cost $1,076,284 in 2021 is worth $1,200,000 today. Properties are sitting on market for 18 days (sellers have the leverage). At the same growth rate, today's median reaches $1,337,937 by 2031.

  • Median house: $1,200,000 | Units: $775,944
  • Gross yield: 3.4% | Net yield: 1.9%
  • 5yr price CAGR: 2.2%/yr | 3yr forecast: 13.5%/yr
  • Population: 15,288 | Owner-occupier rate: 70% | Affluence: Very High
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 0.9% (improving) | Rental demand: Very High
  • Median weekly rent: $775/wk | Days on market: 18 (improving)
  • Landlord market — rents likely to keep rising.

SHORT-TERM RENTAL

  • Median nightly rate: $157/night | Occupancy: 42%
  • Estimated annual STR gross: ~$24,079/yr
  • vs long-term rent: $40,300/yr (comparable — LTR offers simpler management)

INFRASTRUCTURE & CATALYSTS

  • METRONET (Perth Rail Expansion) (Under Construction)
  • Perth City Deal (Under Delivery)
  • Transport: Bayswater station 0.9km away

BULL CASE

If Bayswater maintains 3%+ annual growth and vacancy stays below 0.8%, median prices could reach $1,380,000 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Bayswater pull back 10-15% from $1,200,000, with vacancy rising to 1.6% and rental yields softening as tenants gain leverage.

KEY RISKS

  • No significant risk factors identified for this suburb

COMPARABLE MARKETS

  • Champion Lakes (WA): $857,315 median, 4.5% yield, 3.4% 1yr growth
  • Guildford (WA): $1,130,000 median, 3.6% yield, 18.3% 1yr growth
  • Rockingham (WA): $938,808 median, 3.5% yield, 15.2% 1yr growth

THE PLAY

Bayswater presents a compelling investment opportunity. The combination of solid fundamentals and very high rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 3.4% and prioritise properties with value-add potential. Consider timing entry around the current recovery phase of the market cycle.

  • Entry range: $1,080,000$1,320,000
  • Minimum gross yield to target: 4.5%
  • Watch signal: vacancy staying below 2% and days on market holding under 35

This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.

Gentrification Index

Pre-gentrification3.5/10
High SEIFA decile — already upgraded or established affluent area
Inner/middle ring location (6.7km to CBD) — high gentrification corridor
Active development pipeline (1470 approvals) — supply attracting new residents
Strong public transport infrastructure — supports walkable gentrification

Growth Forecast

high confidence
1yr Forecast
3.5%
p.a.
2yr Forecast
3.3%
p.a.
5yr Forecast
2.8%
p.a.

Basis: 5yr CAGR 2.2% + 10yr CAGR 4.3%

Growth drivers
  • +Very tight rental market (vacancy 0.9%) — upward price pressure
  • +Fast sales (18 days avg) — strong buyer demand
  • +Premium transport infrastructure — supports long-term capital growth
Headwinds
  • High supply pipeline (1470 new approvals) — may cap price growth

Suburb Metric Thresholds

9 green4 yellow3 red
Rental Vacancy Rate
0.9 high impact
Days on Market
18 high impact
Weekly Rent (house)
775 medium impact
5yr Price CAGR
2.22 high impact
10yr Price CAGR
4.28 high impact
1yr Price Growth
17.56 medium impact
Population Growth
1.16 high impact
Median Household Income
2037 medium impact
Unemployment Rate
4.2 medium impact
Public Transport Score
48 medium impact
School Zone Quality
7.2 medium impact
Distance to CBD
6.71 medium impact
SEIFA Advantage/Disadvantage
7 medium impact
Owner Occupier Rate
69.5 medium impact
Gross Rental Yield (%)
3.36 high impact
Net Rental Yield (%)
1.86 high impact

Macro Environment

Macro Indicators

Cash Rate

4.35%

0.25%

Cash rate as at 2026-05-06 · Credit data 2026-04

Suburb Supply & Demand

Suburb Supply Pipeline — New Dwelling Approvals

224

2020

462

2021

310

2022

181

2023

293

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 6053

Most disadvantagedLeast disadvantaged

Decile 8 of 10 — Low disadvantage

Population

15,288

Education (IEO)

9/10

Econ. Resources (IER)

7/10

10-Year Investment Projection

Modelled on Bayswater WA data — rent, capital growth, tax, and depreciation over 10 years.

Pre-filled: $775/wk median rent for Bayswater. Capital growth and rent increase are editable assumptions.

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Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.