Gentrifying suburbs: Key signs your suburb is getting pricey

There are a number of indicators that your your suburb is on the up and up and could be on the verge of getting pricey, according to the experts.

Nice nature strips, younger people and tradie vehicles can all indicate a gentrifying suburb, industry experts say.

And while other signs may not be as obvious as trendy cafes or infrastructure, there are some early pointers buyers should research.

Here’s what to look out for.

Home proud

According to Ray White Cheltenham director Kevin Chokshi, one of the first indicators a suburb is gentrifying is residents’ nature strips.

“If the front garden looks well manicured, it usually means there’s affluent people, or people who have more time and money (moving in),” says Chokshi.

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Real Estate Buyer’s Agents Association of Australia (REBAA) president Melinda Jennison agrees and says an influx of trade vehicles could also be a sign of people investing in an area.

Real Estate Buyer’s Agents Association of Australia (REBAA) president Melinda Jennison.

“Look out for trades trucks lining residential streets — it’s a sign people are renovating and adding value,” she says.

The qualified buyer’s agent adds that gentrification typically starts with older residents selling and moving out and younger professionals coming in.

“(They) typically have higher incomes, some of which they spend on adding value to their homes through renovations or improvements,” Jennison says.

Numbers don’t lie

When it comes to the numbers, up-and-coming suburbs have lower median property prices than more established locations, Jennison says.

But other publicly available data can be a telltale sign of what’s to come.

Ray White Cheltenham director Kevin Chokshi.

“Some measures that might indicate that a suburb is gentrifying include increasing average household incomes, declining household size, an increase in the population working in professional occupations and also increasing property prices,” she says.

Jennison advises buyers looking to get ahead of the curb to find “ugly duckling” suburbs nearby popular locations.

“The suburb that has not yet gentrified still needs to have similar attributes, but the local shops and the homes themselves may not have seen the same level of investment, renovation or upgrade as the gentrified suburb nearby,” she says.

Active suburb

Activewear may be a sign that your suburb is gentrifying — Karen Gararth and Gigi Delves wearing the new Locionne Womens Activewear. Picture: David Caird

In Chokshi’s experience, more superficial signs, such as clothing and cars, also allude to a changing demographic.

“If you see a lot of young couples, people in activewear, puffer jackets … they’re all good indicators of a gentrifying suburb,” the agent says.

“The type of buyers too — if you look around at an auction and there’s different clientele (to what you may traditionally have had in that suburb).”

Jennison went as far as to say the brand of babies’ prams could point to a changing of a suburb’s guard.

“(Or) perhaps a boutique clothing store or two will start to appear,” she says.

Chokshi advises buyers to take a walk around their desired neighbourhood before purchasing to pick up on such signs.

Lattes and lifestyle

More cafes popping up are a key sign to a culture change in your suburb. Photo: iStock.

And of course, Chokshi says standard changes, such as new cafes, restaurants and other lifestyle amenities could help identify a gentrifying suburb.

“Look at the restaurants and cafes coming through, the trend building that’s happening,” he says.

“People want to be where people are. If a suburb has good schools, transport, infrastructure and the lifestyle, (they’ll come).”

But Jennison warns the gentrification process could take “several years”.

“You will get more for your money in a gentrifying suburb, as long as you are willing to be patient and ride out the time that it takes for the suburb to reinvent itself,” she advises.

Suburbs currently undergoing a change include Lilydale in Melbourne, Herne Hill in Geelong, Carina in Brisbane and Maroubra in Sydney, Jennison adds..

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