Terry Ryder of hotspotter.com.au has released his annual list of WA towns where there is potential for good capital growth or better-than-average rental yields.

Bunbury is sitting pretty at number three after Albany and Broome.

“Regional towns like Geraldton and Bunbury are as good as anywhere in Australia, given their diverse economies, reasonable prices and strong futures backed by multiple major developments,” Mr Ryder said.

Real Estate Institute of WA chairman Roslyn Ierace said she was not surprised to see Bunbury on the list as the city “had it all”.

“We are the closest to Perth and I believe given our infrastructure, facilities and also the attraction of such highly qualified specialists in a variety of fields because of our lifestyle, Bunbury will always hold its own,” Ms Ierace said.