Firstly, let's examine the situation in Perth. According to the latest CoreLogic data, certain areas of Perth have shown remarkable price growth trends. For instance, the median house price in the Armadale area surged by a whopping 40% over the past year. While such growth appears impressive on the surface, it pales in comparison to Sydney's high-end market.

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Take Bellevue Hill in Sydney as an example, a well-known high-end residential area where property prices have consistently remained high. Even the area in Perth with the highest growth rates still lags significantly behind Bellevue Hill. Specifically, the price growth in the Armadale area equates to only 1.7% of Bellevue Hill's growth. This stark contrast is not only surprising but also highlights the divergence in price growth across different regions.

So, what accounts for this disparity? Experts suggest that it primarily stems from differences in property values and investor preferences across regions. Generally, Sydney's high-end areas are regarded as blue-chip investment locations, offering slower yet more stable growth and lower risks. In contrast, while some areas in Perth may exhibit higher growth rates, they also carry higher risks due to relatively lower property values.

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In investment decisions, investors typically lean towards choosing stable growth blue-chip areas. High-end locations like Bellevue Hill, despite their higher prices, offer relatively stable capital appreciation and tax benefits through negative gearing policies. This is particularly advantageous for high-income earners, who can achieve higher capital gains by investing in high-value properties.