Western Australia continues to be the most coveted State for real estate as an east coast property expert identifies the 10 top suburbs for investors to buy in — nine of which are in Perth.
In a list of the top 10 suburbs for median house growth between November 2022 to November 2023, Armadale and Brookdale, in Perth’s southeast, were tied for first place, with each recording a 34 per cent rise.
Armadale’s rapid price rise comes as the region seeks to shake its long-held reputation for being unsafe. In 2021, Armadale was voted the State’s worst suburb by the satirical S..t Towns of Australia site.
Director of Melbourne-based investment firm OpenCorp, Michael Beresford, said while an area’s appeal towards renters was part of the “due diligence” investors undertook, reputations could shift over time.
“Areas grow and cities develop. Port Melbourne had that (sort of reputation) not that long ago. And the median house price is now close to $2 million,” he said.
“My frequent advice to investors is ‘don’t buy with your heart’, emotion has no place in investment.
“It’s not about whether you love the property or whether you can see yourself living in that area or not. It’s about where you’re going to get the best financial return.”
The population of the City of Armadale is expected to grow from 91,000 to 141,00 by 2036 – a 3.6 per cent growth rate that is more than three times the State average and more than twice the national average.
“When you have that much extra demand for housing and you have areas that are constrained in terms of supply, you see significant uplift very quickly,” Mr Beresford said.
The property investment expert said the area’s “strong infrastructure pipeline”, including the under-construction Armadale rail line, was also increasing prices.
Mr Beresford said while the “window has closed” for buyers to get a quick return on investment in parts of Perth’s south east, other suburbs in the area still had strong opportunities and the affordability of houses in WA meant the Perth market had room to grow.