Home' API Magazine : May 2014 Contents 91
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As emerging hipster locations go,
Manning says Preston sits further from
the city but is well serviced.
“Preston is located less than 10
kilometres north of Melbourne CBD. The
suburb is serviced by train and tram
lines and offers a cosmopolitan and
multicultural lifestyle around centrally
located High Street. Preston boasts
popular Preston Market, which is open
Wednesday through to Saturday.”
He says gentrification is under way in
the suburb with values rising, and an
established multicultural feel.
“Preston is characterised by single-
fronted houses valued between $700,000
and $850,000, and duplex apartments
valued from $600,000 to $800,000. While
buyers are paying a premium for this
location at present they’re still receiving
solid rental returns when compared with
suburbs closer to Melbourne’s CBD.”
¿ PROPS TO MY HIPSTER MATES
It’s easy to believe this group is also
spending all their disposable income
on old jeans and vinyl jazz records,
but Osborne says it’s just not true for
everyone. Vendors could miss out on a
lucrative source of buyers if they choose
to ignore the potential of the “it” crowd.
“I think more and more of them are
actually starting to buy because they’re
in creative industries, so they’re in your
digital landscapes and all those things
and they’re all the ones at the moment
that are starting to actually make money.
“There’s no question that the majority of
them will rent, so it’s a potential market
for somebody, but a lot of them now tend
to be becoming quite wealthy.”
Identifying this trend setting and their
property nous are one thing, but how
can the average investor make a quid?
The thing to do is keep a keen eye on
the neighbourhood and look out for
the fascinating commercial ventures,
“When you’re seeing an area where you
might have a number of vacant shops
and all of a sudden you’re starting to see,
because the rents have come down a bit,
these interesting little businesses go in
there. Once you start seeing those little
businesses that start doing things a bit
differently, they’re the ones that will drag
people to come across all the way from
the other side of town just to try their latte
or their sandwiches or whatever they’re
doing that’s a bit different.
“Then you find that the people tend to
follow after that and then people start to
move in and around those spots.”
A hipster brief
demographer and partner
at KPMG, discusses his
take on hipsters.
Are hipsters part of a
In a previous era many hipsters would have
been known as DINKS (double income, no
kids) or yuppies but it’s more than that.
There’s often a philosophy that goes with
“hipsterism”, as well as a disdain for all
What sort of service and facilities appeal
to the hipsters?
I think hipsters are Australians who think
they’re globals. They eschew traditional
Australian culture and so are mightily
impressed by global connections and
appliances. Anything Scandinavian does
well with hipsters!
How do hipster services and facilities
tend to boost a suburb’s property
Hipsters certainly lend a ‘cool factor’ to
a suburb. Walk down Smith Street in
Collingwood and hipsterism hits you
between the eyes – it pervades the air.
Are there ways to identify when an area is
becoming cool among the demographic?
Cafés and delis. Out with milk bars with
plastic strips, in with delis that sell dukkah.
If you don’t know what dukkah is, then I
can’t help you.
How can non-local investors benefit from
If you can pick the hipster invasion then
you’re ahead of the curve. Imagine if you’d
bought Paddington Sydney terraces in the
1970s before gentrification. Hipsters have
their enclaves and goat’s cheese ghettos.
What tends to happen to these types
of locations if they become no longer
‘cool’? How does that come about in
Once cool always cool. I haven’t seen a
hipster locale lose its cool factor yet.
Finally, we’ve had yuppies, slackers,
DINKS, SINKS (single income, no kids) and
now hipsters. What’s the next social group
that’s likely to make its presence felt?
CLUMPS: Cohabitating Lovers
¿ AFTER THE PARTY
The other great thing for property
investors is the eventual departure of the
hipsters doesn’t mean the market is set to
plummet. An area may well have evolved
beyond its urban youth status, but really
that just marks the move of prices on the
way up, according to Osborne.
“It’s like you find a Witchery or your
franchises start moving in there and you
find it becomes more yuppie – people
will be chasing what it used be, who still
think it’s there, and they go into it and
they start pushing up the prices. So prices
actually keep rising as a result.”
Osborne says a perfect example
“Thirty years ago, it was raw, you know
what I mean? Really raw. And now you
still get people moving there because it’s
trendy and it’s hip and all these things,
but in reality it’s sort of not.”
McIntyre says buyers shouldn’t fear the
cool crowd moving on – it’s just another
step in a suburb’s property evolution.
“Suburbs rarely become uncool, they
just evolve to different markets. In terms
of a hipster’s point of view, as soon as an
area is perceived cool, or portrayed cool
by the majority of people or the mass
media it slowly starts to become uncool
The moral of the story is sometimes it
pays to follow. API
SECRET AGENTS’ CHOICE HIPSTER SUBURBS
Source: Australian Property Monitors
To see suburbs on a map visit scan.me/5368cz
VIC \\ THE STATES
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