6 Signs a Neighbourhood will be a new hotspot.
What do Sunshine, Footscray, Castle Hill, Kensington, Yanchep, Ellenbrook, all have in common?
All of these suburbs have been touted as growth suburbs and places to look at getting in early. They are suburbs that whilst undervalued at the moment, may be the next area to pick up with capital growth increasing drastically around them. But picking the next booming suburb doesn’t need to be rocket science. Today we have 5 signs for you to keep an eye out for when looking to pick the next hotspot.
1. Upmarket and trending businesses are moving in: When a trending business moves in the requires disposable income to shop there, it is generally a sign they have invested in the market picking up. For people to shop at these stores they need disposable cash, and if they have that there is a strong chance the properties they live in will be pushed up in value.
2. The suburb is in the right location: There is only so much property within a close proximity to the CBD, it’s true when it is said they aren’t making any more land. The desire to live close to the city will stay strong for consumers, therefore if you buy in areas that are maybe run down, but in a close distance to a hotspot like the CBD you could be investing smartly.
3. Reasons of devalue don’t stay firm: Some areas may be considered undesirable because they can’t support local work, or they have been notoriously shady. This can be fixed very quickly when an employer moves in or there is a crack down on livability and safety. By amending these concerns it can drive a strong revival of the area.
A property at 10 Dudley Street, Footscray that is benefiting from a boom in the area.
4. The neighbourhood has a theme: One of the main reasons that suburbs are not seen desirable is because the homes look somewhat dilapidated. However if you look at the theme of these properties, it’s easy to see if they have potential. Homes such as Victorians or terrace homes have the potential to be revamped, if the structure is there, the exterior can be easily fixed. Keeping an eye out for an overall revamp in the area is essential.
5. Large businesses establish a presence: You can be pretty confident that if a large business such as a Westfield invested in the area – there will be some long term growth. The reason being is that people want to be close to amenities and a long term investment by these sort of companies will ensure they are there.
6. Property starts to move quicker: It may be something very simple as the amount of time on the market is decreasing from 100 days to 90 days, but this sort of change indicates consumer demand to get in the area. There is no better way to see if a suburb is starting to boom if it is gradually starting to be snapped up when it’s put on the market. Speak to your local agent and ask for a measurement on how long it has been taking to clear properties and see how this has changed over a 12 month period.
There are many factors in looking at what a new booming hotspot will be. Buyers need to be aware that this won’t happen overnight, and none of these tips guarantees success, however with these sort of movements in a suburb you can be confident that it will push prices upwards.