The process is as important as the outcome. Twisting on 20 and getting an ace doesn't make one smart, only lucky.
Clearly, historically, there is no debate to be had.
Inner suburbs are STILL seeing higher capital growth
Ellis highlighted what I've discussed on this blog a thousand times, that being the geographical constraints on some of our cities such as Sydney, which is surrounded by ocean, national parks and mountains, as well as pointing out how exceptionally low the population density is in our urban locations.
We kind of already know all this.
But what of the future?
At present job density is much higher in the central city areas as the RBA's research shows. In fact, read this point from the RBA carefully:
And, for that matter, so is population density far more heavily concentrated on central areas:
That's all fairly inherently obvious, but what is more important is how are these trends changing over time.
Firstly, job density is clearly increasing in central areas at a far greater rate than it is in outer areas:
Impact on dwelling prices?
Locating on the fringe is relatively less attractive than it used to be, and not only because the fringe is moving further out.
This trend has played out in all five of the major cities so the conclusion is inarguable on an aggregate basis.
The causation is simply a matter of increasing demand for living close to the city versus scarcity value.
Outer suburbs and regional centres are struggling