There is no way to guarantee that the property you buy will increase in value but to increase your chances, you need to conduct detailed research on the property you are interested in and the suburb it resides in.
The capital growth property investing strategy is still viral amongst property investors. Although the first few years of holding an investment property can be challenging, remember that capital growth can grow your equity if you invest wisely after thorough research.
Critical indicators of capital growth
How it can help you
Last 20 years, capital growth trends and median property prices for houses and units.
Past performance of a suburb can help predict future capital growth
Average property days on market to sell time/auction clearance rates
The ripple effect
Future developments of
infrastructure or amenities
Planned improvements to an area, such as a major highway, schools, hospitals, transport, and shopping centers, can lead to future capital growth due to:
Increased desirability of the location followed by population growth, increased employment, and further investment.
Increases in income levels
As the average income rises in a location, so can the capacity of its residents to spend more of this disposable income on:
- Local amenities, retail, etc., with flow-on multiplier effects, can increase the desirability of a suburb.
- Renovations and improvements on their principal place of residence
or investment properties – improving the quality of properties in a suburb.
This reflects high rental demand and the attractiveness of a suburb.
Low supply of vacant land for development
Comparing median prices in
By identifying trends in these differentials, investors can identify gaps where suburbs can potentially catch up in capital growth.
Discover Australia’s top-performing capital growth suburbs with our free pack of suburb reports. Download for free here.
No-one single factor can be seen as an indicator of capital growth. Thorough research of some or all of these factors can help you best predict whether a property you target will increase capital growth over time.
Real Estate Investar members use Investar Search and RP Data, which are included in our Professional Membership, to perform extensive due diligence at a suburb and property level, including:
- Live market supply and demand analysis
- Complete suburb profiling, including rental income and growth trends
- Property valuation estimates on any residential property in Australia