Caversham WA Property Investment
Mundaring · 6055 · Score: 79/100 · Buy
Caversham Short-Term Rental (Airbnb) Market
Caversham WA Investment Brief
BUY — 4.8% gross yield on a $911,000 median.
THE MARKET
Caversham has compounded at 1.6%/yr over 5 years — a house that cost $841,492 in 2021 is worth $911,000 today. Properties are sitting on market for 18 days (sellers have the leverage). At the same growth rate, today's median reaches $986,250 by 2031.
- Median house: $911,000 | Units: $730,215
- Gross yield: 4.8% | Net yield: 3.4%
- 5yr price CAGR: 1.6%/yr | 3yr forecast: 13.5%/yr
- Population: 7,419 | Owner-occupier rate: 82% | Affluence: High
- Supply pipeline: Moderate — Strong population growth likely attracting new development approvals
RENTAL SNAPSHOT
- Vacancy: 0.9% (improving) | Rental demand: Very High
- Median weekly rent: $850/wk | Days on market: 18 (improving)
- Landlord market — rents likely to keep rising.
SHORT-TERM RENTAL
Insufficient STR data for this suburb. Run a specific address analysis for property-level STR projections.
INFRASTRUCTURE & CATALYSTS
- METRONET (Perth Rail Expansion) (Under Construction)
- Perth City Deal (Under Delivery)
- Transport: East Guildford station 2.4km away
BULL CASE
If Caversham maintains 9%+ annual growth and vacancy stays below 0.8%, median prices could reach $1,047,650 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Caversham pull back 10-15% from $911,000, 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
- Mandurah (WA): $746,319 median, 3.8% yield, 16.5% 1yr growth
- Balga (WA): $750,000 median, 5.0% yield, 14.1% 1yr growth
- Girrawheen (WA): $775,000 median, 4.4% yield, 16.5% 1yr growth
THE PLAY
Caversham 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 4.8% and prioritise properties with value-add potential. Consider timing entry around the current recovery phase of the market cycle.
- Entry range: $819,900 – $1,002,100
- Minimum gross yield to target: 5.1%
- 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
Growth Forecast
high confidenceBasis: 5yr CAGR 1.6% + 10yr CAGR 4.3%
- +Strong population growth (9.0%/yr) driving demand
- +Very tight rental market (vacancy 0.9%) — upward price pressure
- +Fast sales (18 days avg) — strong buyer demand
- −High supply pipeline (667 new approvals) — may cap price growth
Suburb Metric Thresholds
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
106
2020
189
2021
132
2022
97
2023
143
2025
New dwelling approvals — higher numbers mean more future supply
Socio-Economic Profile
Source: ABS Census 2021SEIFA Index · Postcode 6055
Decile 8 of 10 — Low disadvantage
Population
32,320
Education (IEO)
6/10
Econ. Resources (IER)
9/10
10-Year Investment Projection
Modelled on Caversham WA data — rent, capital growth, tax, and depreciation over 10 years.
Pre-filled: $850/wk median rent for Caversham. Capital growth and rent increase are editable assumptions.
Nearby Suburbs
Analyse a Property in Caversham
Get instant STR rules, granny flat feasibility, rental yield, and full investment strategy comparison for any address in Caversham.
Analyse a Property →Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.