Critical Indicators of Capital Growth
How can it help you
|In the last 20 years, capital growth trends and medianfor houses and units.||The past performance of a suburb can help predict future capital growth|
|Averageon the market to sell time/auction clearance rates||Tracking this helps ascertain the current supply and demand for property in a locality.|
Prices will tend to rise when demand for property consistently outstrips the available supply over the long term.
|The ripple effect||When the , prices often increase in the suburbs closest to the capital city center first.|
The ripple effect thenripple outwards over time to suburbs further from the city center and regional areas.
|Future developments of|
infrastructure or amenities
|Planned improvements to an area, such as a major highway, schools, hospitals, transport, and shopping centers, can lead to future capital growth due to the:|
Increased desirability of the location followed by population growth, increased employment, and further investment.
|Increases in income levels||As the average income rises in a location, so can the capacity of its residents to spend more of this disposable income on:|
|Population growth||Inward migration to a suburb can influence capital growth as when people arrive in a locality, they somewhere to live immediately.|
Targeting areas with solid population growth andfor new housing, which can affect the demand for property, can affect capital growth.
|Rising weekly rental prices||This reflects high rental demand and the attractiveness of a suburb.|
|Low supply of vacant land for development||Less land available means fewer new properties to compete with existing properties. Where supply is constant, and, prices tend to increase too.|
|Comparing median prices in|
|By identifying trends in these differentials, investors can identify gaps where suburbs can catch up in capital growth.|
Discover Australia’s top-performing capital growth suburbs with our free pack of suburb reports. Download for free here.
No single. Thorough research of some or all of these factors can help you best predict whether a property you target will increase capital growth over time.
Investar members use Investar Search and RP Data, which are included in our Professional Membership, to perform extensive due diligence at a suburb and property level, including:
- supply and demand analysis
- Complete suburb profiling, including rental income and growth trends