Suburbs set to take off
Being able to identify suburbs in the early stages of gentrification can help owner-occupiers and investors buy into areas where house prices are set to increase markedly and ride the wave of capital growth.
The first step in identifying these suburbs is to look in the right general area. These suburbs are close to the CBD and/or the sea.
The next step is to ensure that these suburbs have a relatively high percentage of character or period-style homes, for example properties built before World War II.
When you have selected inner-city or coastal suburbs with character/period-style homes, then you can start to look at the people who live there and, more importantly, the people who are moving into the area. Consider the following:
Is the number of children under 19 years of age decreasing faster than the state average?
Is the number of older people (65-plus) decreasing faster than the state average?
Is the number of couples without children increasing faster than the state average?
Is the number of people with bachelor degrees or higher increasing faster than the state average?
Is the number of professionals increasing faster than the state average?
Is the number of female professionals increasing faster than the state average?
Is the number of people living at a different address five years ago increasing faster than the state average?
There are a number of other factors to consider but the change in demographics is key as it takes people to transform the property and then turn what was a very ordinary space into a great place.
If you want a headstart on finding areas in the early stages of gentrification, have a close look at the following suburbs:
MELBOURNE: Braybrook, Footscray,
West Footscray.
SYDNEY: Arncliffe, St Peters, Tempe. BRISBANE: Annerley, Lutwyche. ADELAIDE: Thebarton, West Croydon, Hindmarsh.