Have you written the 2024 year off yet? Are you ready to kick-start 2025? If your New Year plans lean toward expanding your investment property portfolio, a key consideration is to look closely at job trends.

Employment needs and requirements have changed significantly over the years, particularly the last five years as many workplaces adapted to accommodate employees working from home. This has in no way eliminated the need for the communal office space but has allowed many the opportunity to have greater flexibility in their work/life balance. The need for larger properties, which allow for a home office scenario, has increased as well as consideration to move away from CBDs with proximity now not as much of a need as it once was.

That being said, there are still many, many, jobs that simply cannot accommodate employees working from their own offices. Teachers, health workers, first responders, retail and trades – among many more – bring jobs to locations. Recognising where these growing areas are is key to investors when contemplating future property purchasing decisions. When we consider growth, we’re not just considering it in terms of the volume of properties available for purchase, but in the overall characteristics of a suburb – the growth that leads to expansion of the facilities to support the population within and surrounding that area. Suburbs with good amenities – or the potential for them – including health facilities, schools, shops, sporting facilities and parklands are worthwhile exploring.

Follow the jobs… Consider where has strong job growth now and into the future – how can your investment purchase support a growing populations and its community’s needs?

The direct correlation between CBD locations and real estate price growth could once be determined by the fact that the most high-value jobs were located within CBDs. Health is forecast as the fastest growing job sector in Australia, with the majority of health facilities being expanded into suburban and regional areas. Hospitals and health hubs come to mind straight away. The employment generated from these invaluable services starts long before construction and will continue to be a permanent employer within a community long into the future.

For investors, creating opportunity for growth in your portfolio starts with, identify where jobs are, where there is growth, and the opportunity to invest in property which supports the needs of communities and potential tenants. 

Once again, it comes back to location; but more to that, why a particular location. Future planning should always be considered when making investment decisions to ensure the property is competitive and meets your short and long-term goals.