This article is from the Australian Property Journal archive
FOUR suburbs in Melbourne's inner north and inner west offer the best investment value, according to Nyko Property's annual survey.
Nyko Property’s Annual Recommended Suburbs Survey listed the suburbs of Footscray and Maidstone in the inner west and Thornbury and Preston in the inner north.
Nyko Property director Bill Nikolouzakis said the price and location gave these key suburbs substantial upside.
The survey considered the suburbs were undervalued when sold in 2008/09 with a median unit price of under $400,000, in line with the Melbourne unit median of $377,000.
“We identified that they were poised for growth, even in a flat and falling market.
“Although Footscray and Thornbury had a lower socio-economic demographic, our research suggested their proximity to the CBD and the high performance of the neighbouring suburbs would ensure their gentrification,” he added.
Nikolouzakis said the survey uses rigorous and impartial research to assess new property projects for their investment suitability and has stood the test of time.
“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.
“The suburbs we have selected in the Nyko surveys from 2008-13 have outperformed the Melbourne unit market by 2.77% per annum – a 63% improvement – as well as holding up well against the Australian unit market, outperforming it by 2.52% per annum – a 54% increase,”
“For the clients that bought in Thornbury, their suburb outperformed the Melbourne market in that time by over 100%,” he added.
Nikolouzakis said the Plan Melbourne has been a key factor in identifying which locations are likely to see the highest spike in employment and population growth.
“The state government has pinpointed suburbs, and even key areas within those suburbs, in which they anticipate growth and therefore have committed extra funds for improvement of infrastructure and amenities.
“An in-depth knowledge of the local areas and the micro-economic factors affecting them are the keys to selecting high growth locations,” he concluded.
Australian Property Journal
