What Is A Land Banked Suburb?
One of the fundamental drivers of capital growth is supply and demand. When demand exceeds supply, this leads to increasing values as buyers compete over a limited number of properties or land within a specific location.
A suburb becomes land banked, or landlocked when there is no more land available for development.
When searching for landlocked locations, a factor investors often fail to consider is if and suburb has recently been rezoned for higher density occupation. Zoning is a key consideration that must be taken into account as changes will greatly impact future supply.
If you are hoping to benefit from capital growth through your next purchase, buying in a suburb that has less supply than demand should be an aspect of your overall strategy.