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How to increase demand for your property

Investment fundamentals will tell you when demand is higher than supply, capital growth will occur. location map house suburb area find

In many of our capital cities, while there may be changes in zoning and increased infill, supply of land will remain extremely tight.

As our population continues to increase demand will continue.

Property trends and analysis are starting to highlight that some locations will be in higher demand than others though and these are the areas you should invest in for higher capital growth.

Macro Trends

The trends starting to reveal themselves include;

Employment

Population growth will always be higher around our capital cities,  

investor-enquiry-form

Why?

Because that is where we will have a better chance of finding work.

Our biggest employment hubs are our CBD’s, Airports and Hospitals.

Take Brisbane for example, we are already seeing rapid expansion of our CBD and Hospitals and our Airport is about to add a second runway.

This will lead to a rise in jobs growth, which will lead to more employment for our population.

School Catchments

People are willing to pay more ensure their children receive the best education, especially if that education is free. school zone learn class teach property market area location map street kids child

One of Brisbane’s best performing schools is Brisbane State High School.

Consistently ranked in the top 3 schools in Brisbane and it is free to children who live in the catchment.

Public Transport

The bigger states like Sydney and Melbourne are starting to see the benefits of public transport as their population increases sharply.

A recent study of the Brisbane property market has also shown suburbs with a train line have performed up to 40% better over the last decade.

Walkability

The new buzzword for property investors is “walkability”, so much so there is now a website ranking your property – www.walkscore.com

Another word we could use is convenience, it will become more important as our population grows and traffic congestion increases. city family urban suburb

Simply having the ability to walk a block for a coffee in the morning or a nice meal at night without the hassle of jumping in the car and finding a parking spot.

Or the potential to jump on a bus or a train into work, or even better taking a short stroll into work each morning.

Sydney’s most walkable suburbs now attract a 20% premium.

In contrast, there will also be trends that will lead to less demand for certain suburbs or properties.

As Investors, we must avoid these trends;

  • Being located directly on a train line
  • Too close to a main road
  • Flood Zones
  • Areas of large scale development and oversupply
  • Regional areas with high unemployment levels
  • Suburbs with low wage growth

Micro Trendsapartment

There are also preferences for certain types of property that increase demand as well.

When buying units or apartments, a small low maintenance courtyard can be huge point of difference.

Much more so if it is located on the ground level, as it will appeal to downsizers and people with small children wanting to avoid stairs.

Storage tends to become an issue in an Apartment, so things like extra living space, storage rooms or extra off street parking are a bonus.

Properties with a River or City view also tend to achieve a premium at the time of sale, as does an extra few square metres of land.

Also, buying a standard property but having the ability to easily add another bedroom or a second bathroom can make a big difference and make your property stand out.

Summary research find search property investment location area suburb state market

Buying with these trends in mind can make a significant difference to your portfolio over the longer term.

If you can do your research and due diligence efficiently, there should be no reason you cannot group a few trends into the one property.

It should be clear now that buying a property in a good school catchment with good walkability, away from a main road and having the ability to add a bedroom will perform significantly better than a property without these trends.



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About

Brett Warren is the Senior Property Strategist at Metropole Properties Brisbane and uses his 12 plus years property investment experience to advice clients how to build their portfolios. Visit: www.brisbanebuyersagent.com.au


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