By Nick Allingame UDIA WA President www.udiawa.com.au/
When purchasing a new home, whether it’s in an established or newer area, there are a number of things to consider about the location and whether it suits your needs.
For example, it is important to look at the local services and amenities on offer and whether these reflect your lifestyle and requirements, such as schools, shops, employment options, public open spaces and recreation areas, medical facilities and public transport.
What is interesting is proximity to many of these types of infrastructure and services are not only important for convenience, it also has a positive impact on property prices in the long term.
Take schools for example. Recent research by Domain found house prices in top-performing school catchment zones in Brisbane rose between 19% and a staggering 40% in just 12 months from 2016 to 2017. That is compared to average house prices across Brisbane rising a more conservative 3.5%.
It is no secret there are several areas around Perth with highly regarded state schools that attract a premium from buyers wanting to get into the local catchment, such as Rossmoyne and Applecross.
In terms of new areas, look at what the plans are for local schools, as a quality new school may mean a good return on your investment down the track. If you are purchasing early into a new area, you will need to look at future plans and if there is allocated funding for a new school.
Parks are another proven asset that has a positive impact on home values. Research released last year by Robert Breunig from Australian National University and Syed Hasen from Massey University provides solid evidence to show that, on average, a small local park can add approximately $20,000 to the value of a property within 300 metres of it. That is compared with a property that has ‘unimproved’ public open space within the same proximity.
In terms of public transport, proximity to a train station can also have a positive impact on value, with research based on Sydney property showing homes between 400m and 800m away from a train station achieved an increase of 1.3% on land value. Properties situated under 400m away from a train station achieved, on average, a 4.5% premium in land value.
This is good news for those in close proximity to new Metronet stations, including on the new Cockburn to Thornlie line, as well as north to Yanchep and north-east to Ellenbrook.
The associated amenities in and around these stations are also likely to add value to surrounding property.