The latest from SQM Research’s Housing Boom and Bust Report suggests looking at areas where income is rapidly increasing to identify potential property hotspots. Author of the report, and founder of SQM, Louis Christopher says that analysing these areas can provide insight into new areas to watch.
“Income growth is usually a main contributor to the performance of property prices,” Christopher says.
Suburbs such as Waterloo and Redfern are appealing to young professionals and this demand subsequently increases the property prices.Waterloo is right at the top of the fastest income growth areas – with a 9.1% compound average income increase. New Farm in Brisbane was sixth on the list while Perth’s CBD came in fourth place.
What do you think of this analysis? How do you choose your property investment locations?