Whether you’re a budding investor or simply keen to make a great return long-term when buying or building a home, understanding how to identify growth suburbs and emerging markets is key to building wealth through real estate. 

Incredibly dynamic, the Australian property market is influenced by a range of factors and has historically seen previously overlooked areas become sudden hot spots for buyers. So how can you stay ahead of the curve and identify a growth area or emerging market that represents a real opportunity?

In this guide, we’ll walk you through how to seek out high-potential areas using high-growth suburb research techniques and other strategies so you can make the most informed choice for your future. 

 

Future Growth Suburb Identifiers

Emerging markets often exhibit early signs of growth long before the broader market recognises their potential. These areas may show increasing sales volumes, rising median prices, and heightened developer interest. Keeping an eye on these early indicators can help buyers identify valuable opportunities before they become widely known.

Whether you’re looking to pinpoint future growth suburbs in Perth in 2024 or those in another state or city of Australia, it is vital to review the following: 

Economic Indicators

Economic indicators such as employment rates, average incomes, and overall economic activity in the area are crucial in identifying growth suburbs. This is because suburbs with a strong economic foundation are more likely to experience sustained suburb growth. 

For example, areas with low unemployment rates and high median incomes often attract more buyers. Thus creating greater competition and driving up property prices.

Additionally, suburbs that support a diverse range of industries tend to be more economically stable and best positioned for favourable suburb growth rates. Conversely, suburbs that are more reliant on a single industry are more vulnerable to economic downturns. 

A suburb with a mix of manufacturing, services, and technology sectors is capable of greater resilience and is likely to be more attractive to potential homebuyers and investors long-term. 

Population Growth & Demographics

Population growth is another key driver of property demand and therefore suburb price growth. This is because suburbs experiencing significant population growth typically see increased demand for housing, which can lead to higher property prices. By analysing demographic trends, valuable insights into which areas are likely to grow can be identified and leveraged to your advantage. 

For instance, areas near universities or major employment hubs often attract a younger, transient population looking for rental properties, making them ideal for investors. While suburbs with good schools and amenities may attract families seeking to enter the market and buy or build their forever homes.

Infrastructure Development

Improving accessibility and lifestyle, infrastructure improvements often precede growth in property values. New roads, public transport links, schools, hospitals, and shopping centres can significantly boost property values in an area. For this reason, as a buyer, you should look for suburbs where planned or ongoing infrastructure projects are in the works.

Transport infrastructure, in particular, can have a substantial impact. Making commuting easier, new or improved train lines, bus routes, or highways in an area majorly contribute to rapid suburb property growth. 

This can be especially beneficial for those prepared to build a new home in a developing area as this can mean buying in what will become one of the best capital-growth suburbs once fully established.

Urban Planning & Zoning

Paying close attention to any proposed urban planning and zoning changes is also strongly recommended for pinpointing an emerging market. When an area is rezoned, from farming land to permit residential or mixed-use developments, it becomes more appealing and therefore more valuable. 

Curious about how to do suburb research concerning urban planning and zoning? Details of local council plans, potential zoning changes and development proposals can typically be accessed online, providing valuable insights into future growth prospects.

Lifestyle & Amenity Factors

It comes as no surprise that lifestyle and amenity factors play a major role in how desirable a suburb is. Areas with good schools, parks, recreational facilities, shopping centres, and dining options are all features of a good suburb growth profile. Proximity to beaches, rivers, and natural attractions can also be a big drawcard, though suburbs with these attributes are frequently already marked as high capital growth suburbs rather than emerging ones. 

Remember, lesser-known suburbs that offer a high quality of life, with safe, clean, and aesthetically pleasing environments can quickly become the next big thing. This is often accelerated by gentrification whereby older, formerly less desirable areas undergo renewal through renovations and rebuilds, attracting a new demographic and boosting property prices.  

Expert Insights & Market Research

Performing market research and seeking guidance from real estate professionals, property developers and other industry experts is also beneficial in identifying emerging markets. This will give you access to valuable information based on experience and data that may help you forecast upcoming suburbs for property growth. 

For example, If you are already priced out of your preferred high-growth suburb you might still be able to buy into the area by checking the surrounding suburbs. 

Known as the ripple effect, one approach to see if a neighbouring suburb has the same potential is to measure its property values against the median prices of those adjoining it. If there is more than a 5% variation, the suburb next door will likely catch up in no time, meaning the sooner you can buy in, the better. 

 

Buy & Build In An Emerging Market With Stop Renting Perth 

At Stop Renting Perth, we offer an alternative pathway to homeownership through our curated collection of house and land packages. Not restricting our clients to new development areas, we support you in securing the perfect plot of land in your preferred suburb. 

Offering expert insights and leveraging decades of industry experience and connections, we can help you pinpoint up-and-coming suburbs to buy and build in. 

By ensuring you can benefit from any potential gains posed by buying in an emerging market or growth suburb, we help you to escape the cycle of renting sooner and invest wisely in your future. Book your obligation-free consultation with our team today to learn more.