Armadale was once rated as the worst area in Western Australia, but with urban development and infrastructure projects, the quality of life has seen a significant improvement. This suggests that the reputation of the area may change over time.
While the attractiveness of an area to renters is part of the due diligence for investors, reputations can evolve over time. Buyers should pay attention to the future development prospects, infrastructure projects, and overall appeal of the surrounding areas, rather than relying solely on current reputations.
Property investors point out that significant price increases can occur when there is a high demand for housing and limited supply in a region. With a projected population growth to 141,000 by 2036, a growth rate of 3.6%, in Armadale, this is more than three times the Western Australia average and more than twice the national average. This suggests that property prices in the area may continue to rise in the coming years.
Moreover, the affordability of homes in Western Australia indicates growth potential in the Perth market. Quality properties can be purchased in Western Australia for around $550,000 AUD. While the "window for rapid investment returns" in certain southeastern suburbs of Perth may have closed for buyers, there are still strong opportunities in other suburban areas in the region.
Matthew Bull and Christie Bull purchased two properties in Perth last year, including one in the Hilbert suburb of Armadale for $500,000 AUD. They believe that these areas have excellent investment potential considering the significant government spending on local infrastructure, availability of job opportunities and creativity, and an extremely low rental vacancy rate.