The rise of satellite cities

Expert Advice by Paul Wilson

20/09/2014

With a growing population – projected to double to 46 million by 2075 – architects, builders and developers are now having to think more strategically.

One concept in urban planning has skyrocketed in popularity and that is the satellite city.

A satellite city, also referred to as a self-sufficient city, is located somewhat near, but mostly independent of, larger metropolitan areas and are usually built in the natural growth path of a nearby city to supplement the larger city’s expansion.

So what’s all the fuss about?

When planned well they can be an investor’s ideal location as it instantly appeals to three target markets including professionals, students and families. This creates a higher demand for property in that area and increases an investors chances of good capital growth over the long term. In some occasions there might be short term gains as well, however, I wouldn’t usually regard this type of investing strategy as short term as there are some factors that are out of your control during the release and planning stages which I will refer to in more detail towards the end of this article.  

From an occupiers perspective, it’s no wonder why more and more people are choosing to live in these satellite cities – they have everything you could possibly need. From schools to shopping centres, transport hubs and employment nodes, a satellite city allows residents to live a lifestyle in the suburbs with access to amenities but still within close proximity to the city.

We’ve seen a trend in the number of professionals and students choosing to reside in satellite cities such Brisbane’s Chermside and Sydney’s Paramatta to take advantage of lower rent and property prices, who then commute to the city for work, or who may even secure work in the local employment opportuniteis these cities produce.

Families also enjoy the bigger back yards and lower property prices that a satellite city can provide plus nearby access to schools, parks and healthcare facilities, while still being close enough to the city for amenities such as airports and sporting arenas.

With key infrastructure comes employment and a rise in nearby residential building, so while some satellite cities can occur ‘naturally’, some councils and developers have purposely built these kinds of cities which are these days referred to as ‘master-planned communities’.

The Gold Coast’s very own Sanctuary Cove is the perfect example of a successful master-planned community which has previously won the coveted “most outstanding multi-generational community in the world” at the Global Awards in London.

It should be noted that the emphasis above was placed on the fact that the master-planned community was ‘successful’. Some developers and property marketing companies fail to reach a ‘successful’ status due to their poor management and timing of release.

If, for example, a developer releases the entire lot of dwellings, it floods the market and in turn lowers the value of the property as well as the demand for rental vacancy in that area.

Timing is also important when it comes to master-planned communities – just like any other property purchase you need to identify your criteria, time frame and budget when identifying the suitability of locations and specific properties.  

Talk to the experts at We Find Houses on 1800 600 890 to discuss how we can assist with reviewing your existing portfolio and assist in the designing of strategies for taking your property investing to the next level.

Paul Wilson is an Independent Property Investing Expert and the founder of We Find Houses, Educating Property Investors & We Find Finance. Paul has been educating and coaching investors since 2001. Paul provides valuable, independent guidance and support by teaching strategies on how you can invest successfully while protecting yourself from commission hungry sales agents and property spruikers. Protect yourself with knowledge, contact Paul today for a complimentary consultation on 1800 600 890 or email paul@wefindhouses.com.au

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- This article originally appeared on www.wefindhouses.com.au.

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