Research from real estate agent PRD Nationwide shows increased infrastructure spending in Melbourne’s North-West is pushing up house prices.
Areas which once had a rough reputation are turning into property hotspots.
Blue collar suburbs like Heidelberg Heights, Sunshine West and Fawkner were named the top-three investment areas for affordable houses, in the report.
Published last month, the report details the large amount of infrastructure scheduled in those areas, supporting further price growth.
Heidelberg Heights is set to have $32.9 million worth of new projects in 2016, while Sunshine West will have $30.5 million injected into local developments. While big block sizes in Fawkner are beginning to be popular with buyers, as blocks of similar size in Coburg sell for well over a million dollars.
The online real estate site Domain, reports Melbourne’s industrial postcodes, including Brooklyn, Altona North, Pascoe Vale, Glenroy and Broadmeadows, are hitting new highs as a spillover of buyers from neighbouring areas seek larger land and affordability.
Brooklyn, in Melbourne’s west, is seeing strong buying interest as an overflow of buyers from from nearby Yarraville are pushing up the price of the family home on a 700 square metre block into the $700,000 range.
According to real estate agents who work the area, two years ago the same home in would have fetched in the high $400,000 bracket. That’s quite a rise over just two years.
Domain Group chief economist Andrew Wilson said buyers are re-examining suburbs that were once less popular, as the tide of gentrification keeps rising.
This spillover effect is showing there is still intense demand to own and get on the property ladder.
Civic infrastructure spending and the gentrification of suburbs are localised examples of how property can go higher.
Another factor which impacts local property prices is the reputation and proximity of schools.
New analysis of school enrolment data reveals that parents are choosing free public schools that rival private colleges in academic excellence.
For the state of NSW, enrolments in public schools have risen 6.4% from 2012, and the NSW Department of Education have announced an investment of more than $60 million into new inner-Sydney schools to overcome a shortage of places.
Property agents have been overwhelmed by parents wanting to buy homes nearby. It’s driving a real estate mini-boom in catchment areas.
For many families, school is the major factor when looking for a home and the rising costs of private education is making proximity to good public schools even more of a priority.
Wherever you see improved services and infrastructure, rents and land price must rise. Announcements of civic improvements and new schools bring unexpected gains for those who own. Those who rent simply pay higher rents. Choose what side of the fence you want to be on.
Local infrastructure plans, proximity to schools of reputation, and block sizes are all important factors you need to consider in your real estate investment.
These factors and a whole lot more are detailed in our Cycles, Trends and Forecasts property report compilation. Chock full of actionable ideas on what you need to look for in your property investment. It even shows you ways you can unlock the riches you may be sitting on, by unlocking the value of your existing property.
Go here to maximise your property investments and, more importantly, to time it all to your advantage.
Lead Researcher, Cycles, Trends and Forecasts
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