With a little research, you can get ahead of the property market.

How to predict real estate growth hot spots

Buying property, whether for your own use or as an investment, is generally a safe move for long-term gain. Mark Twain famously quipped that they aren’t making any more land, so knowing precisely where and when to buy in a particular suburb is a valuable skill to acquire.

There are proven tactics to predicting the next growth area however, and with a little research, you can get ahead of the market and become a shrewd purchaser.

Examine recent industry reports

When you decide you’re ready to enter the property market with an eye towards swift capital gains, your first port of call should be any of the regular market analysis reports issued by industry organisations. Property magazines, groups like CoreLogic RP Data or any of the state-based Real Estate Institutes publish regular reports online, looking at figures such as rental price fluctuations and housing supply. Learning to read patterns in the data is a great step towards anticipating growth markets.

“There’s nothing better than getting insight and advice from those within the industry”

Follow large infrastructure developments

Whenever the government announces a new large-scale infrastructure project, there’s a potential flow-on effect for the real estate market. In Deloitte Access Economics’ 2014 report, Economic Impact of State Infrastructure Strategy – Rebuilding NSW, it was found that the expected influx of new residents to NSW over the next 20 years would “necessitate the development of new growth areas in Sydney and the redevelopment of existing suburbs”. Pay attention to the proposed locations for future infrastructure, things like transport projects or retail/commercial developments, and consider adjacent or accessible suburbs that may have been overlooked.

Learning to read patterns is a great step towards anticipating growth markets.Learning to read patterns is a great step towards anticipating growth markets.

Speak to the experts

While it’s true that those with the inclination can discover a lot of information regarding property forecasts for themselves, there’s nothing better than getting insight and advice from those actually within the industry. There are a lot of nuances to technical real estate data, which might not be immediately apparent to a casual observer, so speaking to a buyer’s agent before making any big decisions is always advisable.

Another thing to keep in mind while doing your own research is that you’re likely not the only one. Buyer’s agents often get the inside scoop on the property industry before that information becomes available to the general public, so they’re also a great resource for staying ahead of the market curve.

There is no “never miss” way to read the property market, but savvy investors can tip the odds in their favour by reading and understanding the playing field, and striking before the iron gets hot.

up icon