How is the demographic mix in your suburb affected by different local infrastructure?
How might this affect the demand and price of your house?
The type of infrastructure in an area will influence the kind of people attracted to that area.
And this will have an impact on what type of dwelling will be most desired.
And this demand will raise prices for that type of dwelling.
The effect of schools on house prices has been studied extensively, with some reporting that some schools affect them at a rate five times that of capital cities.
If you are researching an area and discover that a primary school is opening up in an area with fairly few families, compared to overcrowded suburbs nearby, you can predict that families from the surrounding areas will soon be attracted to moving into yours.
This means that demand for family-sized dwellings will soon be on the rise. Time to invest in those four-bedroom houses.
But the mere presence of a school is not the only factor, the success of the school is important, as parents want to send their kids to a good school, to be happy and successful, and these parents are prepared to move the family into the area in order to facilitate this.
So, to hear of plans to revamp a school with funding, facilities, and a strong headmaster who has proven their worth in other schools, combined with your knowledge of demographics in the area, could be a goldmine of predictions of property prices.
Access to other types of institutions have a similar effect on different types of dwelling. The opening of an office block may have a disproportionately positive affect on smaller dwellings, say one-bedroom, where that person, possibly young and single, can move in to get to work easily.
There is a combination effect by which these people may only move in if there are enough other attractions – cafes, bars and sports clubs. These work better for demand if they are in accord with other features around.
It all starts with knowing your current demographic mix, and knowing the effect that developments in your suburb may have.
Contact Radius Suburb today to find out who is in your area, and those around it, for potential insight into which way the local housing market may turn.