Three clues that property prices in your suburb are about to go up

Three clues that property prices in your suburb are about to go up

Whether you’re looking to buy, sell, invest or settle down, knowing how to pick a suburb that’s set to surge will give you the information you need to make wise decisions. Your property sale or purchase may be the largest transaction you make in your life, so it pays off to be well-informed. Read the following tips and learn to tell when your property’s price is about to soar.

1. Demand exceeds supply

Just like the principles of capitalism state, when demand exceeds supply, competition is rising. The same holds true for the property market. Take a look at your suburb and try to see if it’s a buyers’ or a sellers’ market. If it’s a buyers’ market, there will be an abundance of properties at a lower price compared to similar suburbs. If it’s a sellers’ market, the demand has increased above supply, slowly pushing prices up.

2. Discounts decline

While most sellers ideally like to set a healthy asking price, sometimes this is not realistic in a buyer’s market. In under-performing suburbs, sellers will revisit their original price and slash it, offering discounts to vendors. It’s easy to spot discounted suburbs by looking for areas where prices have been slashed, evident from listings before and after sales. However, when the size of these discounts get smaller, the suburb is set to see some serious growth.

3. Rise in renters

When a suburb’s popularity is increasing, renters are the first to catch on. They are more mobile than home-owners, and prioritise lifestyle over capital. This influx of renters will push up rent prices and jack up the rental yield. It may seem counter-intuitive, but this process comes before the increase in property prices. In fact, rental popularity is one of the causes that pushes property values up in your suburb.

Dean Blankfield

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buy your home. It's free! Available on the Apple Store.