A new study by depreciation experts Washington Brown has determined the highest performing investment-grade locations when it comes to annual capital growth.

According to the Pulse report, the top property investment performers were Hillman, WA (up 40% to $530,000) , Moree, NSW (up 35% to $330,000), Armadale, WA (up 35% to $460,000), Orelia, WA (up 33% to $500,000), Withers, WA (up 30% to $390,000), Munno Para, SA (up 28% to $495,000), Greenfields, WA (up 28% to $510,000), Elizabeth East, SA (up 26% to $478,000), Balga, WA (up 26% to $490,000), and Oakey, QLD (up 24% to $386,000). Washington Brown Director Tyron Hyde explained that the growth seen in Hillman reflected the price pressure felt in the capital of Western Australia for the past year.

Terry Ryder, the director of Hotspotting, which had powered the report, said that The Pulse featured the top 10 locations when it comes to capital growth and yield, which also included five from the list of overall best capital growth investment performers. In order to determine such locations, its Pulse report had identified the top investment capital growth performers all over the country which also have the power of high rental yield quarter-over-quarter and year-over-year.

Hyde said that the top performing property investment areas for capital growth featured metrics for yields and vacancy rates that were above average.

"The 50 locations featured in The Pulse report are chosen because they offer above-average rental yields – but we also require our nominated locations to have the credentials for capital growth," Hyde said.

"Of the 50 locations in the current edition of the report, 48 have recorded growth in their median prices in the past 12 months – including 30 with capital growth above 10%. The top 10 have all had price rises well above 20% – in addition to providing superior rental yields." Hyde said that investors within the top investment areas had benefited from the depreciation benefits every year that were worth thousands of dollars. He noted that over the top 10 locations, the annual taxation benefits could range from $2,500 to more than $7,000. The number depended on the property's type as well as its location.

"For investors in Munno Para, for example, the possible taxation benefit could be approximately $6,200 resulting in a net benefit of about $2,300 to $2,800 over the past year depending on an investor's personal tax bracket," said Hyde