The four suburbs in Melbourne you missed the boat on: Nyko Property
There are four suburbs in Melbourne, in the inner west and inner north, that represented the best investment value for those looking to take advantage of the market in 2008/2009, according to the Annual Recommended Suburbs Survey from Nyko Property.
Investors who purchased in these suburbs during those years saw substantial growth.
The four suburbs picked by Nyko Property were:
All located within 10 kilometres of the CBD. Footscray and Maidstone are in the inner west, while the final two are in the inner north. In 2008/09, each had a median unit price of less than $400,000.
Nyko Property director Bill Nikolouzakis said that their prices and location made them undervalued 'hotspots' which had achieved strong results for those who purchased in.
“Their price and location gave these key suburbs substantial upside; we identified that they were poised for growth, even in a flat and falling market,” he said.
“Although Footscray and Thornbury had a lower socio-economic demographic, our research suggested their proximity to the CBD and the high performance of the neighbouring suburbs would ensure their gentrification,” said Nikolouzakis.
Those who bought in Thornbury saw the suburb outperform the Melbourne market by over 100% during that period.
“Our survey takes into account the demographics of the suburb as well as the new demographic entering the area through gentrification and selected projects that we felt most suited that change,” he said.
His tip to identifying these hot areas? Plan Melbourne – the document that identifies locations likely to see strong employment and population growth.
“The State government has pinpointed suburbs, and even key areas within those suburbs, in which they anticipate growth and therefore have committed extra funds for improvement of infrastructure and amenities,” he said.
“An in-depth knowledge of the local areas and the micro-economic factors affecting them are the keys to selecting high growth locations.”
