Investment report worries community groups
A report which names four inner city neighbourhoods as Australian property hotspots has been greeted with concern by local community groups who fear an erosion of demographic diversity and housing affordability.
The annual Australia’s ‘Top 100 Investment Suburbs’ report, published by Your Investment Property magazine, singles out Alexandria (number seven on the list), Newtown (17), Chippendale (22) and Rushcutters Bay (31) as property investment hotspots, with all four expected to see strong price rises in the near future.
The report’s author, Aidan Devine said now was an ideal time for investors to purchase homes in the four suburbs.
“Each of these suburbs represents an opportunity for investors to purchase homes that will yield strong capital growth,” he said.
Mr Devine said the methodology used to determine the investment hotspots was related to availability of housing stock.
“For example, Chippendale is a good investment because lots of people want to buy there but the number of homes for sale is quite small,” said Mr Devine.
“Furthermore, areas with a similar mix of terraces and warehouse conversions, like Beaconsfield, have become very expensive – this will force people who want those kind of homes to go to Chippendale, which will drive up Chippendale’s prices.”
But the prospect of rising property prices has concerned local community groups. David Pocklington, spokesperson for the Chippendale Residents Interest Group (CRIG), said buyers would want returns on their investments, which could push high rents even higher.
“This might be good news for Chippendale home owners who want to sell their homes, but the flip-side would be higher rents,” said Mr Pocklington.
“We already have a situation where eight or more people are being crammed into two bedroom units because people can’t afford the rent.”
Lindsay Charles, co-convenor of Friends of the Carlton United Aite (FoCUS), said the report raised red flags about Chippendale’s demographic diversity.
“It supports our fear that the huge development at the Carlton-United site is targeted at investors wanting to rent apartments to students at the universities in and around Chippendale,” she said.
“For a community to be viable, it needs a wide demographic mix: students, couples, young families, the elderly and so on.”
Representatives of the Newtown Neighbourhood Centre voiced similar concerns. Paul Adabie, the centre’s Homelessness Services Manager
said: “Housing affordability here is already at breaking point.
“The most basic rental accommodation in Newtown – a room in a run-down boarding house with shared bathroom and facilities – is already $180-
$190 per week, minimum.”
Newtown Neighbourhood Centre CEO, Lisa Burns expressed fears for the suburb’s social fabric. “Newtown’s character is that it’s a place for people from all walks of life and socio-economic backgrounds,” she said.
“This report just increases our concern that Newtown is becoming a suburb for rich people only.”
Ms Burns said all tiers of government must tackle housing affordability in Sydney “as a matter of urgency.”
