Suburb Spotlight – Altona

We’ve been busy during COVID-19 Stage Four lockdown with some demographic research. We have focused on some interesting socio-demographic measures, rates of change of some key measures and in particular, some financial indicators that spell change for some suburbs.

Over the coming weeks we will be preparing a paper on our findings and we will be circling in on just over ten suburbs in Melbourne, and some compelling selections in some of our Victorian regions. Our study will join some dots and help explain why some suburbs are gentrifying at a rapid rate, identify some that are poised for imminent change, and we’ll share some of the wonderful reasons why sea-change and tree-change adoption for a selection of postcodes are sustainable reasons.

This week we’re circling in on Hobsons Bay’s very own Altona.

Home to over 10,000 residents and just 13km west of the CBD, Altona has appeared on my radar for a long while. Once home to our first female PM, Julia Gillard, and a readily-embraced destination for many on a hot summer’s day, Altona is deserving of more praise than it currently receives. For those who haven’t recently visited this coastal gem, the stigmatised association of nearby petroleum refineries, smelly seaweed and dull shops is now an outdated view.

A stroll down bustling Pier St, or enjoying fish and chips on a picnic rug on the esplanade will give a visitor a nice first insight into Altona’s vibe. The data shares insights beyond the vibe, though.

Altona’s walk score is 63; a modest walk score when contrasted to other suburbs, however it is important to note the sheer spread of the suburb and the fact that the highest density is actually in the greener shaded areas. For those residents who live within the patch bounded by Civic Parade and the water, they are fortunate enough to be supported by two train stations and two shopping precincts. It is fair to deduce that their corresponding walk score is an attractive one.

This first chart tells an interesting story, and particularly when it is overlaid with the charts that follow.

Altona’s population change was negative prior to the 2011 Census data collection and since this time, the subsequent Census collation demonstrated a marked rate of population increase. Victoria’s net migration was at a particularly high rate during this time also but this chart shows that Altona’s rate of population growth did an about-face between 2006 and 2011.

Weekly family income is an important measure, and when benchmarked against the overall Victorian weekly income, Altona signals a sharp discrepancy between the family income and the state average.

In other words, the suburb demonstrated increasing affluence during this time.

In contrast with this increase in affluence, Altona households increased their debt levels. Our most recent Census collection highlights that for the first time in decades, Altona households carried a significantly higher level of commitment to mortgage repayments than the state average. Prior to this, Altona households sustained a lower proportion of mortgage debt repayments to income, compared to the Victorian average.

The following chart tells us what is changing in terms of household tenure. Increasing rental appeal is evident, as is the increase in mortgage holders. This signals that investors have also spotted the potential in this suburb, and considering the tight vacancy rates, reasonable yields and strong capital growth over the last ten years, it is hardly surprising that investors have jumped onboard.

Altona’s growth potential based on a continued improvement of socio-economic conditions, (a combination of data signalling the rate of change of social advantage), distance to CBD, relative affordability, schools, and coastal location hold it in good stead for capital growth performance.

Cate was asked late last year by Your Domain to shed light on a ‘bridesmaid’ suburb. Altona is far from being a poor cousin to any suburb, but considering glorious Williamstown is just around the corner, Altona definitely lent itself to telling a good story.

Picture credit for thumbnail: Unsplash, James Guerrero