Are sneakers a more reliable investment than property? Gen-Z thinks so

Ivana Lim worked out something early in her career as a trader of luxury and cult sneakers. As a woman in the traditionally male-dominated space, customers expected her to be a soft touch.

“It’s a really ‘guy dominated’ space,” says Lim, 25 and a business degree graduate. “A lot of the people who run the blogs and websites are guys. When I started selling there were not many girls in the game. Because I am a girl people think I am a bit softer, they could push me a little more.”

Lim, who lives in Melbourne’s east, began selling sneakers for pocket money on Facebook about five years ago while she was studying and working part-time in retail. These days, her main income is from sneakers she sells through the global platform StockX, which recently launched an Australian office, including a local team who check the authenticity of products.

Like many collectors, Lim, who has about 150 pairs (50 to keep and 100 to sell), has sneakers she has never worn, and confesses to buying the occasional pair she doesn’t like because they will trade well, like an investment property for (someone else’s) feet. Last week, she made one of her bigger sales: a pair of Yeezy sneakers, designed by rapper Kanye West for Adidas, for $1750 that she bought on the resale market a couple of years ago for $1000.

But profits from sneakers can be had at all ends of the market. A report released this week by StockX found traders in popular Nike Air Max 1s, which can sell new for less than $200, have commonly made a 50 per cent return on investment since early 2020, while Nike Air Jordan 4 investors would have made double that over the same period.

Staying on top of trends, including runway and celebrity, is the key to success as a trader, Lim says. Over the past five years, she has witnessed noticeable growth in the number of female sneaker influencers on Instagram and TikTok, where the movement is thriving with Gen-Z.

Pop culture is also driving interest. Last year’s documentary about Michael Jordan, The Last Dance, drove demand for ’80s styles. Celebrities including Rihanna and Beyonce have helped raise the profile – and prices – of cult styles, including the wedge-heeled Isabel Marant Bekett. And the Duchess of Cambridge’s recent appearances in Veja sneakers has led to a spike in searches for the brand.

But the sneaker world wasn’t always so welcoming of women. In an article for British Vogue last November, Jessica Lawrence wrote women were “virtually invisible” in the space compared to men, who seemed to receive the best colourways and attention from the big brands.