Properties in ‘unfashionable’ suburbs that retain access to desirable amenities will see increased demand heading into 2013, a senior industry figure has said.
According to CEO of Raine & Horne, Angus Raine, suburbs across the states in now undesirable locations will become hot in demand, similar to the growth of Sydney's inner west.
“If you’re looking for long term growth in 2013, then ‘unfashionable suburbs’, enjoying proximity to high quality facilities such as schools, shopping precincts, business districts, plus excellent transport and road systems, could prove to be the next big thing,” Mr Raine said.
“We’ve seen it all before with suburbs such as Sydney’s Paddington and Newtown, which in the past struggled to tempt investor interest.
“Yet their proximity to local cafés, dining and entertainment strips have since won them over.”
Mr Raine identified Semaphore in Adelaide’s west as an example of this phenomenon.
According to Mr Raine, the rise of Semaphore is undoubtedly linked to its median sale price of $535,000, which makes it more affordable compared to other seaside suburbs such as Henley Beach or Grange, both sitting around the $600,000 mark.
Tom Walsh, principal at independent agency Walsh Real Estate, is a local of Semaphore and claims the coastal town has a certain attraction which drags in buyers.
“There’s just something about the beach,” he told Real Estate Business. “They’re not like the ones in Queensland on the Sunshine Coast, but people are always going to be attracted to the water. And Semaphore is an affordable jewel that allows people to have that dream.”
Mr Walsh claims the area began growing around 15 years ago, but recent investments from the local and state government have made the area a hotbed for real estate.
“The council has spent a lot of money creating an attractive suburb. They’ve redone the nature strips and stopped trucks from using the roads in the area, making the place more family friendly," he said.
“New roads and bridges have cut travel times to the city as well, so we’re really starting to see some good development in the Port Adelaide area.”