Gentrification is a natural economic change. Many suburbs within metropolitan Melbourne are evolving and changing their identify. Many suburbs have done a 360 degree turn, while some continue to retain their heritage vibes.
Gentrification in Melbourne is occurring for many reasons. It can be due to the increasing population, an influx of more affluent residents and businesses or from property developers creating new architectural designs such as apartment and townhouse living.
Gentrification can potentially increase the value of your property. Once a suburb experiences gentrification it can turn an undeveloped suburb into a highly desired place to live. As this occurs both rent and capital growth can increase above market returns.
However, gentrification can also cause some residents disruption. This is often seen when younger adults start to occupy the area, leaving some older residents a little nervous or unsettled.
Some examples of suburbs in metropolitan Melbourne that have experienced gentrification are:
- Altona – Once just an industry outlet filled with distribution centres, Altona has transitioned into a well connected residential suburb 13kms south west of the Melbourne CBD.
- Box Hill – Once a standard residential location, Box Hill has now become Melbourne’s largest Chinese population. Box Hill is the largest city outside the Melbourne CBD. Located less than 15km east of the city, over 60% of residents are either born in China or with Chinese ancestry. This dynamic location is well linked to major transport hubs including trains, bus and tram junctions. Many higher education facilities and two major hospitals have seen plenty of developer support to build many high-rise apartments.
- Docklands – A suburb originally swamp land in the 1880s became a bustling dock area. It has now turned into a city sensation, with many high rise apartments overlooking the water and city skyline. There are some incredible world class restaurants and retail outlets that have attracted tourists all over the globe.
- Footscray – Historically developed as a warehouse and distribution centre it had little in the way of parks and amenities. Many years ago, the suburb was perceived as a rough neighbourhood. In recent times, developers have introduced modern apartments overlooking Maribyrnong river and architecturally designed townhouses that brought on the urban living Footscray has today. Cafes, bars, clubs and restaurants have given Footscray a new name.
Gentrification doesn’t always happen inside larger cities with vibrant economies
Ballarat is an old regional town 110kms from the Melbourne CBD. Once a country town that experienced a world renowned gold rush in the 1800s, Ballarat saw their population increase to approx. 50,000. In recent decades, many farms have been sold to build more housing estates, which will see Ballarat’s population to increase to 144,000 by 2030, boasting the second largest population in Victoria. The areas has grown significantly over the last 100 years, with many great schools, shops, business and tourist attractions.
Future gentrification in Melbourne
Some locations in Melbourne where we anticipate significant gentrification are places further north and west of Melbourne. Suburbs in the north include: Beverage, Donnybrook, Sunbury and Wollert to name a few. Suburbs in the west include: Geelong, Werribee and Wyndham Vale to also name a few.
Neighbourhoods experience gentrification when an influx of investment and changes to the built environment leads to rising home values, family incomes and educational levels of residents. The suburb mentioned above in the north and west of Melbourne have had large sums of money from both local/state governments and private investment.
When looking to buy a property, regardless if its to occupy or invest, you should pay attention to the cultural and gentrification. If you’d like to purchase a brand new or off the plan property, please feel free to contact us. We specialise in souring property for buyers and welcome the opportunity to help.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
December 2020
