Carnegie Boomtown: How to spot a suburb on the brink of its prime

Sept 2017

Carnegie Boomtown: How to spot a suburb on the brink of its prime

As Melbourne development sprawls, purchasers are looking to inner-urban suburbs for their next investment. The main challenge for property buyers wanting to achieve high levels of capital growth is to find suburbs that are about to boom. Almost any property, anywhere, will increase in value in a rising market. However, only a small handful of locations will actually hold their value beyond the initial growth and heightened demand.

What key indicators should you be looking for to know when an area is on the threshold of its prime? We’ve got the insider tips for you.

The ripple effect.

One of the most telling signs that a suburb is on the brink of activation is to look at its surrounds. By viewing the landscape of development as a whole, investors position themselves to see patterns indicative of a strong potential to yield high capital growth.

Carnegie’s burgeoning revitalisation is a clear overflow from its already gentrified neighbours Caulfield, Richmond and Malvern. This key factor coupled with the areas increased amenity and relative affordability position the hotspot at an exciting point of its lifecycle. Carnegie is rearing to maximise local innovation which has occurred at a grassroots level in the past decade across hospitality, infrastructure and planning.

Increased business, increased property value.

A groundswell of cafes, retailers and eateries have moved in to the area from gentrified neighbouring suburbs. This migration of local commerce has positioned the main strip of Koornang Road as an impressive corridor of growth for small businesses in the South East.

Framing Carnegie are leading outposts for medicine, education and technology. Institutions such as Caulfield Grammar, Monash University, Monash Clayton Medical, and nearby Tesla have seen an influx of students and white collar young professionals into the area looking to invest in making burgeoning Carnegie their home.

Population growth.

Carnegie has experienced steady population growth in the past 16 years. This progression is expected to continue, reflecting income growth pitched higher than the Melbourne average. In recent Urbis reports, Carnegie’s rental market outperformed that of Greater Melbourne and Glen Eira demonstrating both increase in median weekly rents and longevity in rental tenure.

Infrastructure.

Major upgrades to public transport in the form of the keenly anticipated Sky Rail connect Carnegie to the CBD in a way unrivalled by most suburbs with proximity to green spaces, and world class recreation facilities.

The suburb’s village lifestyle, walkability and access to nature are further enhanced by these upgrades to public transport, making Carnegie a competitive player for both first home buyers and downsizers looking for a low maintenance lifestyle.

Pace of Carnegie is the realisation of this cumulative groundswell. It is a commitment to leading the way of Carnegie’s continual renewal as Pace design, develop, and deliver the backdrop of the suburb for generations to come.