Top 10 investment grade suburbs in Australia include six in WA, with Armadale remaining flavour of the year

Most of the top 10 “investment grade” suburbs in Australia are in the west, according to a new report, which highlights Armadale as the “flavour of the year”. New research from depreciation experts at Washington Brown has named six WA suburbs in the top 10 list of places to invest. The research is based on capital gains over the past financial year. The list also provides a forecast for the next 12 months, as Washington Brown has tipped the suburbs to continue to perform strongly. According to the research, Hillman increased its value by 40 percent over the last financial year. Armadale and the NSW suburb of Moree in second place with 35 per cent growth, followed by Orelia (up 33 per cent) and then Withers in Bunbury (up 30 per cent). Greenfields tied with the South Australian suburb of Munno Para for fifth place with 28 per cent growth over the past year. Balga tied with the Elizabeth East in South Australia for sixth place with a 26 per cent jump, with Oakey in Queensland coming in seventh place to round out the top 10 suburbs. But if you consider capital growth combined with rental yield, Armadale was the winner, according to Hotspotting director Terry Ryder. “The first of these five suburbs is Armadale in Perth, which has benefited from strong investor interest over the past few years,” Mr Ryder said. “Before Perth’s boom convinced investors that any house in Perth was a good buy, few wanted to buy in downmarket Armadale. Now, it’s flavour of the year for those seeking a cheap house with high growth prospects.” Mr Hyde said Balga in the City of Stirling was also a top performer, with the median house price has increased 25 per cent and rents have risen 26 per cent over the past year.