What to look for in the next Hot Suburbs
By | 19th Jan 16

Regardless of if you are an owner occupier or a property investor; we all hope to see capital growth from our properties. The reality is not all suburbs' growth rate is the same. In 1975 for $30,000 you could purchase a home in Melton which today would be worth around $250,000 or a similar home in Middle Park which would now be worth around $2.24 million. So what are the things to look for when you are hoping to buy in the next hot spot?

Access to the CBD

When you consider around 850,000 Melbournians commute into the CBD each day it is easy to understand why easy and direct access to the CBD is one of the most consistent factors in determining the next hot spots. This is not just an important consideration for those working in the CBD as many people will want to travel into the city for the night life and social scene, to attend sports games or to attend concert’s and shows.

Public Transport

As our roads become more and more congested, easy access to public transport is becoming a bigger consideration for buyers. While buses and trams are fantastic, the most desired mode of public transport is still the train. Look at suburbs which have train stations and when choosing a specific property to purchase, consider if the home is within easy walking distance of a station. Public transport is not only important for professionals commuting but also for kids getting to and from school and provides a no fuss mode of transport into the CBD.

School Zones

One of the factors which contribute to making a suburb highly desirable is if they fall within a well-regarded school zone. Consider a suburb such as Balwyn, this suburb has seen a high level of growth in large part to the highly regarded Balwyn High School, with many parents only looking to purchase a home if it was in the zone.

The Ripple Effect

When buyers are priced out of an area, they will seek an alternative. Often people will look to the adjacent suburbs for a more affordable option. When this happens, the demand increases which in turn pushes the prices up and the ripple effect occurs.

Investment in infrastructure and Business

Take note of announcements about new freeways, train lines and shopping districts or the rejuvenation of such developments. When large businesses move to the area and create large scale employment these factors will also affect the capital growth of the area. 

Pro and Con factors

Just as there are positives to look out for when examining the next hot suburbs, there are also many negative factors which can contribute to holding back growth. Be conscious of factors such as public housing, past landfill sites and the crime rate. On the other hand, some highly desirable factors to look out for will include park lands, tree lined streets and beaches.