Armadale is the ‘ugly duckling’ suburb investors should swan dive into

Hailed as a suburb within an “ugly duckling” market, here is why investors are now turning their heads to Armadale.

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The West Australian suburb of Armadale, which shares its name with the City of Armadale, has emerged as a top contender among numerous other suburbs in Perth, securing a coveted spot in the Smart Property Investment Fast 50 ranking for the upcoming year.

Drawing insights from a 14-strong investment expert panel and recent housing performance collected from open-source data, the Fast 50 report offers an unparalleled glimpse into Australian suburbs poised for future growth, providing valuable insights into their housing performance.

Located approximately 25 kilometres south-east of Perth’s central business district, Armadale is a notable suburb within one of the country’s fastest-growing local government areas (LGAs), the City of Armadale.

Notably, the LGA has also been identified as one of the five affordable Aussie markets offering strong upside potential by real estate research and analysis company Hotspotting.

“It is the fourth fastest-growing local government area in Western Australia and has some of the most affordable houses of any capital city,” Hotspotting director Terry Ryder stated.

While Mr Ryder named the City of Armadale as currently an “ugly duckling” considered unattractive by those looking through uneducated eyes, he believes it currently possesses all the hallmarks of becoming a “real estate swan” in the future.

This includes rising sales activity with potential for capital growth, plenty of houses at affordable prices, strong infrastructure (both existing and planned), and proximity to major job nodes.

The region boasts a hefty industrial area that includes a $4 billion container port, a $1 billion hydrogen plant, a $635 million rail line and station, and a $4.3 billion shipbuilding project, among others.

He added: “Numerous government incentives for first home buyers are a beneficial factor for the young families who dominate Armadale’s landscape.”

Located on Perth’s south-east transport corridor, the LGA “has been marked for future infrastructure development by the federal government, encouraging business, industrial, and residential projects”.

Taking a closer look at the suburb of Armadale itself reveals a compelling choice for individuals seeking to purchase property in Western Australia. The area’s diverse landscapes, bustling city centre, and extensive amenities contribute to its growing popularity.

Adding to its appeal is the suburb’s excellent transport connectivity, with frequent train services and bus routes seamlessly connecting residents to and from the CBD. Conveniently accessible within a 30-minute commute, the suburb can be reached via major routes such as the Albany Highway, Kwinana Freeway, or Tonkin Highway.

The property market in Armadale offers a diverse range of opportunities, featuring a mix of established homes and new developments. The suburb’s ongoing development initiatives, including the addition of sporting pavilions, theatres, and a district hall, further contribute to its appeal and prospects for the future. These amenities not only enhance the quality of life for residents but also add value to the local property market.

In terms of market performance, Armadale has shown positive growth. The median quarterly growth stands at 1.70 per cent, indicating a steady upward trend. The average annual growth rate is 1.60 per cent, further reflecting the suburb’s stability and potential for consistent returns.

Over a 12-month period, Armadale has experienced a substantial growth of 10.90 per cent, highlighting its desirability among buyers and investors.

For those interested in rental properties, Armadale currently offers a competitive gross rental yield of 6.50 per cent, with median rent in the area at $380.

With a median price of $305,000, Armadale presents an affordable option for buyers, particularly those looking to enter the property market or invest with a limited budget.

In summary, Armadale’s real estate market has demonstrated a steady upward trajectory, positioning it as an attractive investment option.

The prospect of infrastructure upgrades, including the enhancement of the train station and road networks by the West Australian government, signals further development and a potentially favourable effect on property values.

For those seeking to capitalise on a flourishing and dynamic market, Armadale offers a compelling opportunity to invest in a suburb that is on the rise and evolving.

To find out which other suburbs made the Fast 50 2024, click here.

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