We live in a country with vast expanses of space, yet we cling to the
major coastal cities for dear life and treat the inner-ring suburbs of Sydney,
Melbourne and Brisbane like hallowed turf that we can only hope to be worthy of
residing on.
Property taps into some of our strongest needs and desires – security,
safety, prestige, status, a sense of success, something to leave behind
for our children.
We all need somewhere to live, or somewhere to operate a business, and as
with any asset, when demand outstrips supply, prices go up – as we’ve clearly
seen over the past few months.
Having said this, there are a number of key factors that will always
play a part in the value of property, in the most buoyant or subdued of
markets.
So let’s take a look at why some properties are more valuable than
others…
Gentrification
One of the significant changes to occur in Australian cities over the
past 50 years, which has pushed up inner- and middle-ring suburb property
values is gentrification – the shift in the socioeconomic demographic of a
suburb.
Areas undergoing gentrification are suburbs where more affluent
residents move in renovating older houses or building new ones pulling up the
value of neighbouring properties.
The bottom
line:
Like most things in life – supply and demand for a property determine
its value.
And in the future, Australia’s population growth, our increasing wealth as a
nation, and our desire to live in a select number of locations in our big
capital cities will underpin the future value of well-located properties.
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out
Jason Gwerder
Wednesday, 19 May 2021
