Want to identify the nation’s real property hotspots?
Just look at where our cashed-up young people live, experts say.
Exclusive data from Stop Renting Australia has revealed the top suburbs for nation’s wealthiest under-35s – those earning more than $3000 a week, or taking home more than $156,000 a year.
Stop Renting Australia marketing and brand manager Tabitha Greaves said those looking to pick investment hotspots need only to follow the money.
“If you want to understand where housing demand will be the strongest over the next decade follow the young high-income earners and where they’re choosing to live,” she said.
“If they are able to earn and earn well, they have the opportunity to influence where they live and in turn influence others to live in that area, and it creates a ripple effect in local housing markets as well, and I think they’re able to set up what housing demand looks like for tomorrow.”
An aerial view of Sydney Harbour. Photo – Getty Images
In New South Wales, the report highlighted 10 areas included, Bondi Beach – North Bondi, Surry Hills, Erskineville – Alexandria, Manly – Fairlight, and Potts Point – Woolloomooloo.
A further 10 were identified in Queensland, with the top five being Newstead – Bowen Hills, Moranbah, South Brisbane, New Farm and Brisbane city.
The top five suburbs in Victoria are Richmond (South) – Cremorne, Prahran – Windsor, South Yarra – North, Richhmond – North and Docklands.
Perth’s top five is Karratha, Scarborough, Perth (West) – Northbridge, Innaloo – Doubleview and Subiaco – Shenton Park, while Tasmania’s top five were Sandy Bay, Hobart, West Hobart, Kingston Beach – Blackmans Bay and Howrah – Tranmere.
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In SA there were five areas singled out.
Adelaide city is home to the highest share of young wealth, with 330 cashed-up residents making up 27.39 per cent of the state’s share of rich under-35s.
Unley – Parkside wasn’t far behind with 244, or 20.25 per cent of the mix, while Hindmarsh – Brompton came in third place with 222, or 18.42 per cent of the mix.
Goodwood – Millswood, and Roxby Downs rounded out the top five, with 206 and 203 respectively, representing 17.1 per cent and 16.85 per cent of the mix.
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Ms Greaves said lifestyle wasn’t always a factor to where cashed up young people live, especially not in areas fuelled by mining or resource activity.
“These sort of suburbs, they are close to major employment hubs, transport, economic opportunity, and I think that’s the driving factor,” she said.
“Across the country we see young high-income earners are clustering in suburbs that not just offer lifestyle and walkability but employment access – you’ve got social infrastructure, and when they choose these sort of suburbs it’s long-term career positioning.
“It’s about long-term benefits of living in that particular suburb and it’s not just trendiness, not just lifestyle, but I think they’re playing the long game and I think it’s really encouraging to see young people think about the future and, in turn, they’re going to influence these suburbs.”
Thomas Crawford from Crawford Doran Real Estate. Picture: Matt Loxton
Thomas Crawford of Crawford Doran, who sells in Brompton, SA, said he had seen a clear demographic shift in the suburb in the 11 years he had been selling there.
“Historically, the majority of buyers were Boomers seeking cost-effective investment properties close to the city,” he said.
“Today, Brompton open inspections are heavily dominated by under-35s.”
He said young buyers were looking for a balance of affordability and convenience.
“With convenience meaning low-maintenance living, proximity to the city, easy access to public transport, and nearby lifestyle amenities such as parks for fitness and cafes and restaurants for the social scene.
Sarah Allen with her partner Kija Smith outside their home in Brompton. Picture: Eleni Tzanos
Doctor Sarah Allen, 34, and partner Kija Smith, who is in her 40s, have just bought home in Brompton through Mr Crawford and Ms Allen said it had everything the Adelaide and North Adelaide-based workers were looking for, and that they were prepared to pay more to get the lifestyle they desired.
“We don’t have kids yet so it’s nice that there’s lots of stuff to go to around here like restaurants and bars, and different events,” she said.
“We’re planning to stay there a while so I saw it as an investment in that yes, we have to pay more, but I probably get an extra 40 minutes in my day because I don’t have to spend an extra 20 minutes each way commuting.”
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