In 5-10yrs time, a property in inner city will increase more in value than your average suburbian household (this can be argued, depending if you pick an unusual growing suburb)
For example; Bendigo have plans for a new hospital, so property prices will increase due to more demand for housing for nurses, doctors etc
Gladstone (in qld) is planning to setup a major oil/gas refinery and again demands will go up.
However, a steady rapid incease in property value is always certain for inner city housing. (unless australia suffers through a gfc scenario, but then every house will be affected) and I believe you will get larger growth in the inner city than your average suburbian location in a short period of time
Huge rental demand in St.Kilda and Elwood. Stats reveal 70% of residents in both suburbs. Meaning much higher rent (due to demand)
A 1 bedroom appartment can fetch as much rent as a 3 bedroom house in the suburbs.
Alex, share your wisdom on the housing industry