A recent property study has shown four inner-city suburbs of Melbourne are currently offering strong investment opportunities.
Nyko Property’s “Annual Recommended Suburbs Survey” identified the inner-west suburbs of Footscray and Maidstone and the inner-north suburbs of Thornbury and Preston as good value areas in which to invest as they were undervalued in 2008/09, with sales reflecting a median unit price of under $400,000.
The price was at that time in line with the Melbourne unit median of $377,000.
“Their price and location gave these key suburbs substantial upside; we identified that they were poised for growth, even in a flat and falling market,” Nyko Property director Bill Nikolouzakis said.
“Although Footscray and Thornbury had a lower socioeconomic demographic, our research suggested their proximity to the CBD and the high performance of neighbouring suburbs would ensure their gentrification.”
Nikolouzakis said people who bought property in Thornbury during the period from 2008 to 2013 would have seen their asset outperform the Melbourne market by over 100 per cent.
As part of the research process, Nyko takes into account the existing and new demographics of the suburb to determine potential growth rates.
Nikolouzakis said people should take note of logical factors such as that to make better investment decisions.
“Historically Australians have bought investment property driven by emotion rather than logic, buying in the area they live in, grew up in or locations that have a certain prestige; this is never the best investment option,” he said.