Gentrification is the process of regeneration and urban renewal, usually entailing commercial and residential property being bought and renovated by wealthier individuals turning run down "cheaper" suburbs into popular in demand suburbs due to the culture of neighbourhood changing as low income families are driven out to either cashing in on the capital growth of the suburb or pushed out over time and consequently replaced by higher income residents.
Over time, the process of gentrification can completely revamp areas by creating shopping streets lined with trendy bars and cafes. For example in Brisbane, the early phase gentrification occurred in the 1970's where areas such as Spring Hill and Paddington underwent renovation as middle class workers moved into and renovated existing tin cottages and timber houses.
With food culture becoming one of the major lifestyles we all indulge in finding real estate in suburbs with a great cafe culture is important to ensure the property is within walking distance to the hot spots. These cafes serve as great places to meet up with friends, have family lunches and breakfast and indulge in the Aussie way of brunch.
Now whilst this approach of mine is abstract, I've basically looked through Zomato.com and located which suburbs have the most popular cafes in Brisbane and then went on to look at the median two bedroom apartment pricing.
Top 10 Suburbs
Median Property Price (2 Bedroom Apartment)
I've plotted the unit median price growth for each of the above suburbs, grouping Fortitude Valley and CBD together and also South Brisbane and West End have been considered as a single suburb.
The comparison graph shows that West End/South Brisbane is powering ahead in Capital Growth as well as Paddington. New Farm has not performed as admirably as the rest with some downturn in recent times, however it is by far the best performer in the last 5 years and the trend surely is expected to continue given the limited stock on the market.
Stock on Market vs Visits per Property
This graph I've just added on the fly, it is a ratio of the Stock Market and Visits per Property. The higher the percentage number, the more oversupply is suggest for the area and highlights the lesser interest of buyers wanting to buy up in that area. Paddington and Woolloongabba are those with the best ratio, Paddington especially as it lines up with the strong capital growth experienced in the area.
I'll continue to do this every three months to highlight the better suburbs at a macro level for investing.
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