Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Invest

5 tips to unearth the next property hotspots

  • February 22 2021
  • Share

Invest

5 tips to unearth the next property hotspots

By Maja Garaca Djurdjevic
February 22 2021

A property expert has bullishly claimed that property hotspots are a “complete myth” that almost guarantees buyers will pay top dollar, and has instead urged buyers to seek out the “warm spots”.

next property hotspots

5 tips to unearth the next property hotspots

author image
  • February 22 2021
  • Share

A property expert has bullishly claimed that property hotspots are a “complete myth” that almost guarantees buyers will pay top dollar, and has instead urged buyers to seek out the “warm spots”.

next property hotspots

Housing affordability expert Ian Ugarte has advised buyers to approach the term “hotspot” with care, particularly in the current market.

“By the time a suburb or region has been declared a ‘hotspot’, demand is already very high and only likely to grow as more buyers’ dollars are drawn to the area, fearful of missing out,” Mr Ugarte said.

“It’s like putting money on a horse that’s just won the race. The time for windfalls has past – that horse has bolted, and FOMO will guarantee you’ve paid a higher price.”

Advertisement
Advertisement

According to Mr Ugarte, property buyers need to pay more attention to market intelligence to help identify suburbs that are yet to be discovered – the warm spot.

“Warm spots are those areas, often surrounding the so-called ‘hotspots’, that are cold, but starting to show signs of being more desirable places to live, with listings experiencing fewer days on market and median house prices trending upward,” he said.

“Whatever you do, just know that as soon as the taxi driver and the dentist tell you to buy in an area, it’s already too late.”

To unearth these “warm spots”, Mr Ugarte urged buyers to follow these five tips: 

  1. Research median-price heat maps: Research median-price heat maps in the area of interest. To do this, just Google “property heat maps + [suburb]” and look at the images it produces. You’re looking for the “cold” patches of median prices that are surrounded by much “hotter” suburbs with higher median prices.
  2. Research days on market: Use tools on various real estate sites to assess the days on market for a property. Domain shows recent historical data for the previous 12 months, so if it’s fallen from >100 to <100, it’s time to start looking.
  3. Research federal and state infrastructure projects nearby: Research federal and state infrastructure projects in that area to signpost increased demand.
  4. Avoid greenfield estates: Recognise that greenfield estates will never be in a hotspot.
  5. Only consider established areas: Buy in an already established area/densified area.
5 tips to unearth the next property hotspots
next property hotspots
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

About the author

author image

Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

About the author

author image
Maja Garaca Djurdjevic

Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

more on this topic

more on this topic

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.