4 indicators of a growth suburb

For pros, spotting a suburb worth investing in might be their second nature but for most of us casualians without a subscription on CoreLogic, it is much more difficult and often we don't know where to start.

Here we give you 4 key factors that influence the growth potential of a suburb:

Jobs

The availability of jobs is closely linked to the growth potential of a suburb, especially professional and high paying jobs. Think about it, who wouldn't want to move closer to where they work? A suburb that is close to a major business district or well connected to one will have all the advantages and will attract people to move into, increasing its demand.

A suburb of this nature will also mean its demographics could be more educated with higher income, which brings lower crime rate, on-time rents and lower turnovers.

Amenities and Infrastructures

Image by Sydney Metro.

Roads, public transport, educations and health care are all essential services to us. Suburbs that are well equipped with these facilities or at least in very close proximity to them will have an advantage.

The NSW Government has identified three key regions in Greater Sydney for redevelopments to meet demand from growing population including: Western Parkland City; Central River City and Eastern Harbour City. Major infrastrucutres and investments are expected to take place within these areas.

Infrastructures will in turn create mroe jobs and attract business.

Population growth

The property game is all about supply and demand. The more people competing, the higher the growth.

Image by The Australian.

Not only we should look at things that will drive the population growth of a suburb faster than the average suburb e.g. jobs and infrastructures. The availability of unique and superior stocks with limited supply within a particular suburb will also be crucial.

Demographics

A good growing population but without a favourable demogrpahic will put a big discount on the growth potential of a suburb.

There's no however, one type of demographic that will always be more superior. For example if you're planning to invest in a 4 bedder in an area that is full of young professionals and international students, its demand will be lower than a 2 bed unit with private gymnasium.

Before pouring money into a suburb, ensure your strategy matches the characteristics of the area.

Still don't know where to start? We're here to help! Talk to one of us today to find the perfect suburb and property that align with your financial strategy.