In this episode of Hotspotting, Terry Ryder talks about one of the most popular real estate myths that locations close to the CBD have higher capital growth than suburban areas. This is simply not the case.

 

In this episode Terry covers:

• The myth that capital growth occurs because most people want to be close to the CBD for work, however research shows that most people actually work outside the CBD.

• The change of location preferences for industrial and major retail outlets away from the CBD into cheaper, more affordable and accessible suburban areas.

• Research by PWC that demonstrates that the economic centres of cities are moving away from the CBD.

• Case studies of LGA areas in Sydney and Melbourne and their growth patterns.

• How 80% of the local economic activity in Sydney occurs in suburban areas.

• Key factors for buying within a location for most home buyers are affordability and proximity to their workplace.

• Research that shows cheapest areas have highest capital growth.

• Recent Hotspotting research that has shown that the outer ring suburbs of Melbourne have had the highest growth as outlined in the latest Top 5 Melbourne Hotspot report.