Spotting the next boom suburb is like spotting an ugly duckling that will turn into a swan. Financial expert Jason Cunningham offers some valuable insider tips on how to spot suburbs on the rise around Australia when purchasing property.
Tips For Picking A Future Boom Suburb
When conducting research on the suburb in which you'd like to buy your home, keep an eye out for the following things as they can be an indicator that the suburb is about to boom:
• Adjacent to a prime suburb: Up-and-coming suburbs that are positioned next to established, well-performing suburbs are likely to benefit from their neighbour's success
• Development in the neighbourhood: Keep an eye out for new properties in development in the neighbourhood. This can be an indicator that a younger demographic is moving in as they usually favour newer builds
• Block sizes: Bigger block sizes are favourable as they can allow for extensions, development and subdivision in the future
• Proximity to the city or sea: Look for properties that are close to desirable features such as the CBD or coast in terms of physical distance. If the property isn't as close as you'd like, consider main arterials that offer fast access
• Suburb amenities: These include schools, shops, cafes and public transport
• Planned infrastructure: Future improvements to the area will make it more desirable in the coming years
Suburbs To Keep An Eye On
Last year Fawkner experienced a 15% growth driven by its affordability, large block sizes, proximity to the CBD and main arterials, as well as the ripple effect of booming Brunswick, Northcote, Preston, and Thornbury which are all million dollar plus suburbs now.
While it is a further out from the CBD than Fawkner at about 35kms from the city, to get an affordable house in a market like Sydney you will have to head further out. The median 3-bedroom price in the area is $679,000 keeping the area affordable, when the median house for Sydney is over a million dollars. What makes this suburb interesting is the planned development of a marina on the banks of the Georges River which will turn the river frontage into a first class recreational area, as well as the new Western Sydney airport in nearby Badgerys Creek that has the area tipped to become it’s own CBD similar to what has happened in Parramatta.
Neighbouring Mitchelton is currently booming, pricing a lot of buyers out of that area, making Keperra the next best thing. The price point here for a 3 bedroom is in the $500,000- $550,000 and properties are selling within days of hitting the market. Keperra is under 15 kilometres from the city, has its own train station and near a great school, making this suburb one to consider.
New Town, TAS
Tasmania’s economy is rising with improvements in tourism and business investment, and its property market is following with high annual growth at 10.2 per cent. Where else in Australia can you find a 3-bedroom home,on a 600m block of land and around 3 kilometres from the CBD for under $500,000? New Town offers just that, as well as being adjacent to high-performing North Hobart, with good access to the city, on the mainland side of the Derwent River.
*It’s important to always do your own research. The information contained in this article and the original Fact Sheet should be considered as suggestions only