Expert Bust #5 – No need to buy near CBD

I’ve done some research into distance from CBD and capital growth. The popular belief is that: the closer, the better. But the data suggests there’s not much really in it, not enough to get excited about this as a winning strategy…

Distance from CBD vs Growth

I calculated growth over the last 40 years for the 5 major CBDs. I categorised each suburb into one of 10 rings. The 1st ring is the closest to the CBD. The 10th is city fringe. Not so conclusive.

But there’s another problem, inner rings are less prone to subdivisions. Subdivisions bias growth calcs lower because of how medians are calculated.

There’s a good explanation and loads more evidence in the full article.

• This topic was modified 3 years, 10 months ago by  Benny. Reason: remove link