One of the most common questions we get is where will the next boom be?
Now, we don't look for short term hot spots, we look for long term growth in up coming suburbs that will expand and develop over time. Our goal is to identify the next capital-city independent employment hubs. But how do you find these gems before they become a big hit? Well lets take a look at the current trends to try and get a bit more clarity on what we can expect to see in the future.
The Australian population is increasing at an all time rate and our cities are feeling the pressure. Sydney, Brisbane & Melbourne cities accounted for 70% of the total population growth over the 2016-17 financial year. Population growth follows 2 main things; employment opportunities and affordability. The population will move to the areas that are most affordable, as close as possible to the employment hubs. That's why our capital cities grow faster.
The problem is that the CBD of most of our capital cities are becoming too overpopulated, transport's a nightmare and for many, it's simply unaffordable to live or to run a business.
Sydney and Melbourne have both proposed plans to create multiple CBD's to spread their cities out and overcome those issues. However, most of us have already seen a smaller version of this in many capital cities where an employment hub develops, the population follows and it creates a completely independent micro city.
Two perfect examples of this are seen around Brisbane - in North Lakes and Springfield Lakes. 20 years ago these areas were farmland on the outskirts of Brisbane. Now they have both evolved into independent cities housing thousands of people.
Top 10 Fastest Growing Job Markets in Australia (2000 - 2017)
Source: ABS (catalogue 6291)
Take a look at the proposed plans in Werribee for the East Werribee employment precinct and the Australian Education City. The Western side of Melbourne is the 2nd fastest growing region in Australia and it has been speculated that it will at a later date become another CBD of Melbourne.
In order to find the growth suburbs of the future you need to constantly have your finger on the pulse. Keep your eyes out for all upcoming development projects, particularly commercial and structural proposed planning. Proposed plans can often be very speculative, but once developers get their eyes on a project, they will spend years trying to make it work and at the end of the day, money talks. Follow the infrastructure and where there is an increase in jobs there will be an increase in population. When population increases, so does demand and then you will start to see capital growth.
If you want to know more about growth suburbs, then request a strategy session with one of our agents. We can talk about everything happening currently, what we are expecting in the future and how that can possibly help you.
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