Does cafe culture and the arts have an impact on property values?

Can suburb trendiness be used to predict property growth? There are many factors to influence value increases: nearby schools, crime levels, even future infrastructure projects. But looking at recent research, the advent of a Cafe Culture Index (CCI) suggests that new eateries and arts venues can also improve the desirability of a suburb – especially in Melbourne.

The CCI collated Zomato reviews of new cafes, measuring the number of reviews and quality of each to identify emerging trendy cafe culture hotspots that could be the next centres of growth. Green Refectory in Brunswick and Hammer & Tong in Fitzroy are two that featured in this research – as known ‘cool’ suburbs that are also hotspots for capital growth.

But beyond cafes, what other ventures can improve a suburb’s cultural standing and its real estate market?

Transformations of vacant land

The development of new arts precincts can really add value to a suburb, and a new project for Southbank is likely to boost the cultural standing of surrounding areas like Docklands. On January 18, the City of Melbourne announced it was working with Creative Victoria to lease out the entire bottom floor of a residential tower on Sturt Street, turning it into a community arts space.

It will provide facilities for smaller scale cultural work, particularly for those without the budget to operate in central Melbourne’s more high-end art galleries and spaces. And yes, there will be a new cafe.

While large-scale cultural developments provide a big drawcard for tentpole events, smaller projects like this are a way of building a grass-roots form of culture, which can factor into the overall trendiness of a suburb.

The spread of cafe culture

While the most popular and trendy cafe hubs are generally located in the Melbourne CBD (think Sensory Lab or Higher Ground), the spread of more eateries into the suburbs highlights an emerging trend.

Trendy cafes could be an indicator of property growth.

These spots tend to be the realm of the young and hip, but are also often markers of growth down the line for a suburb. As young people seek affordable renting opportunities further away from the CBD, the demand for better cafes and cultural precincts increases in these areas. It’s a cycle that happens time and time again.

While cafe culture and artistic developments aren’t the only metric behind growth in Melbourne’s best suburbs, they are worth keeping an eye on. If a cold press coffee shop sets up around the corner, there could be real estate growth on the way.