Bernard Salt’s six possible Melbourne price growth gems for investors to monitor

Demographer Bernard Salt from KPMG has identified a list of six Melbourne gems attracting generation Y buyers.

They are predominantly in the inner west and are formerly industrial suburbs that are attracting a younger demographic.

His picks shows suburbs in Melbourne where the increase in median household income between 2006 and 2011 was more than double the national average of 20%, according to the Australian Bureau of Statistics Census.

Salt says in his Australian Property Investor article property prices in these areas should have increased with the income of residents as people there now have a greater capacity to take out mortgages.

We have checked RP Data to see if his picks stack up. We compare price changes over the past five years to demographic changes between 2006 and 2011.

Maidstone – Household income is up 46% and house prices are up 13.8% over the past five years, between 2008 and 2013, and unit prices are up 12.0%

Maribyrnong - Household income is up 45%. House prices are up 15.8% over the past five years and unit prices are up 25.4%.

Burnley - Household income is up 43% and unit prices are up 12.1% over the past five years.

North Melbourne - Household income is up 41%. House prices are up 12.7% over the past five years and unit prices are up 15.8%.

Footscray – Household income is up 41%. House prices are up 20.0% and unit prices are up 30.1%.

Alphington –Household income is up 40%. House prices are up 17.3% and unit prices are up 27.5%.