Police investigating a home invasion in Perth in which a classic car was stolen are still hunting for a group of armed men.

Police searched a property in Bayswater and found the Mustang coupe which was stolen from a house in Wattle Grove but no sign of the six men who took it.

The group, who wore balaclavas and were armed with a gun, broke into the house early this morning.

They held the owner at gun point and demanded he sign over ownership of the 1965 Ford Mustang.

The vehicle has a GPS tracking device which led officers to a factory unit in White street in Bayswater.

Police deployed a heavily armoured vehicle called a Bearcat and officers from the tactical response unit searched the property believing the armed men could be inside.

The car was found in a laneway beside the unit.

Acting Detective Sergeant Nicole Winstone says there was no sign of the men.

"It looks as if the car has been dumped, however, investigations are continuing as to whether that was a planned dumping," she said.

The owner of the property is assisting police with their enquiries.

Forensic officers will examine the car today.