INVESTORS chasing capital growth should cast their eye to Adelaide’s inner-west with Thebarton, West Croydon and Hindmarsh tipped for substantial growth in the years ahead.
The growing city-fringe suburbs have been named Adelaide’s top three areas to gentrify, according to new research released by the Property Investment Professionals of Australia.
PIPA chairman Peter Koulizos said gentrification was a worldwide phenomenon and almost always centred on suburbs close to the CBD or the sea.
It was also driven by demand, a strong selection of character homes, affordability and younger, childless couples willing to invest in an area.
“Based on that methodology, we’ve identified Thebarton, West Croydon and Hindmarsh as the next Adelaide suburbs to gentrify,” Mr Koulizos said.
“Thebarton in particular used to be light-industrial but, over the years, people have realised that the land they own is worth more as a residential (property) than as a business.
“So people move on and younger people are moving in, fixing up the area.
“Some of the earlier signs of this happening are things like street art popping up, hipsters riding around on their bikes, stopping at the local cafe that stocks almond milk. Of course there are some serious indicators as well.”
According to CoreLogic, house prices in each of the three areas have jumped between 20 and 28 per cent in the past five years to a median of $530,000 to $540,000.
These figures are likely to grow even further as more properties come to the market, Mr Koulizos said.
“If you want an example of gentrification, you just have to look at Malvern and Unley. Those are areas no one wanted to live in 60 years ago,” he said.
“But because of proximity to the city, these areas became very popular once some of the older people moved out and white-collar people moved in, renovating the old homes and transforming the now popular suburbs bit by bit.”
Mr Koulizos said other areas to have experienced gentrification in more recent time where Henley Beach and Semaphore.
“Again, those were once suburbs no one wanted to live in,” he said.
“However, it’s important to point out that just because you see an area starting to transform, doesn’t mean you’re too late as an investor.
“You can still get in and make some money as it generally takes up to 30 years for a suburb to peak.”
Originally published as Adelaide’s ‘West Side’ story
Lydia Kellner, news.com.au, realestate.com.au, 31 July 2018