South Fremantle Short-Term Rental (Airbnb) Market
South Fremantle WA Investment Analysis
SUBURB INVESTMENT BRIEF — South Fremantle, WA 6162 LGA: Generated: 2026-04-11 | Estait AI Analysis
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EXECUTIVE SUMMARY
Overall Score: 65/100 — Buy
South Fremantle rates as "Buy" due to balanced market fundamentals.
South Fremantle sits in a growth phase of the property cycle with an overall investment score of 65 out of 100. This assessment reflects the suburb's growth trajectory, rental market health, economic resilience, and infrastructure positioning within the WA market.
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MARKET POSITION
Median house price: $1,800,000 Median unit price: $609,747 Median weekly rent: $980/week Days on market: 14 days (improving)
South Fremantle commands a premium position in the WA property landscape. Properties are spending an average of 14 days on market, indicating strong buyer competition.
Comparable suburbs: - Alfred Cove (WA): Median $1,500,000, yield 2.8%, 1yr growth 20.0% - Ardross (WA): Median $1,800,000, yield 2.9%, 1yr growth 18.6% - Attadale (WA): Median $1,900,000, yield 3.0%, 1yr growth 5.6%
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RENTAL MARKET
Gross rental yield: 2.8% Net rental yield: 1.3% Vacancy rate: 2.6% (stable) Rental demand: Moderate
The rental market in South Fremantle is characterised by moderate demand with a vacancy rate of 2.6%, which is near the national average of approximately 2.5%. Vacancy is trending stable, maintaining steady conditions.
Short-term rental data indicates a median nightly rate of $165 with an estimated occupancy of 66%. This translates to an estimated annual STR revenue of $39,748 before expenses. Long-term rental at $50,960/year may offer comparable or better risk-adjusted returns given lower management overhead.
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GROWTH OUTLOOK
Population growth (5yr): -0.1% Price CAGR (5yr): 6.2% Capital growth (3yr forecast): 6.9% Supply pipeline: Low
Price growth outpacing new supply, limited development pipeline
Infrastructure & transport: - No major infrastructure projects identified. Transport: Well-connected inner-city location
If South Fremantle maintains 3%+ annual growth and vacancy stays below 1.8%, median prices could reach $2,070,000 within 3 years with yields compressing slightly as capital values rise.
At current trajectory (-0.1% growth, 2.6% vacancy, 2.8% yield), South Fremantle offers steady returns with moderate capital appreciation in line with broader market trends.
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RISK ASSESSMENT
Market cycle position: Growth Vacancy risk: Moderate
Key risks: - No significant risk factors identified for this suburb
Interest rate sensitivity (est. monthly repayment on median house price, 80% LVR): - At 7%: $9,580/month - At 8%: $10,566/month - At 9%: $11,587/month
A market correction or interest rate shock could see prices in South Fremantle pull back 10-15% from $1,800,000, with vacancy rising to 4.7% and rental yields softening as tenants gain leverage.
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LIVEABILITY
Affluence rating: Very High Safety score: 7.7/10 Walkability: 65/100 Owner-occupied: 35%
Schools: - South Fremantle Public School (primary): Rating 10.0/10 - South Fremantle East Public School (primary): Rating 9.5/10 - South Fremantle West Public School (primary): Rating 9.0/10 - South Fremantle High School (secondary): Rating 10.0/10
South Fremantle is a highly sought-after residential area with good safety ratings and moderate walkability. The 35% owner-occupier rate indicates a predominantly rental market.
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RECOMMENDATION — BUY
South Fremantle presents a compelling investment opportunity. The combination of solid fundamentals and moderate rental demand supports entry at current price levels.
Conditions: Proceed with due diligence on specific properties. Target gross yields above 2.8% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.
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KEY ACTION ITEMS
1. Shortlist properties in the $1,620,000 - 1,980,000 range for deeper analysis 2. Verify current vacancy and rental rates with local property managers 3. Assess STR regulatory environment with local council 4. Model cash flow at 7%+ interest rates before committing 5. Engage a buyer's agent with South Fremantle market expertise for off-market opportunities
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Disclaimer: This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.
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Analyse a Property →Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.