Access to public transportation is one of the most important factors that can make or break a deal with potential buyers and tenants, according to a survey by Realestate.com.au.
Although the accessibility of a suburb to public transportation contributes significantly to the price of a house, its relationship to price growth is actually more complicated than it does. It appears, said REA group chief economist Nerida Conisbee in a thought-provoking article.
"For example, an important public transport announcement can be made at the same time as access to finance is relaxed. Rising prices may have more to do with easy financing than a new station, "she said.
Conisbee cited Parramatta as an example. In 2015, the city became one of the most requested regions, and this could be due to two reasons.
Meanwhile, Sydney is experiencing a healthy recovery. At the same time, demand at Parramatta could have become more robust due to the announced rail project.
"It is difficult to disentangle what would have the greatest impact. However, most in-depth academic studies suggest that public transportation projects generally lead to better price growth. This would make sense given our own research on the importance given to public transportation, "said Conisbee.
Conisbee estimates that new transportation projects under development for the next few years will drive demand for housing in certain suburbs.
"With economic growth currently weak, much emphasis has been placed on how to revive it. Although much has been said about monetary policy, spending more on large transportation projects is another way of growing growth. Economy, "she said.
For example, the Melbourne Metro Rail project, which will extend the line with five new stations in the city center, will facilitate access to suburbs like Parkville, North Melbourne and St Kilda Road.
In addition, the provision of bus lanes by the Brisbane underground will allow faster transport services around the city. And while the construction of the Sydney light rail train will likely cause inconvenience for some time, residents of Surry Hills, Kensington and Randwick will find it quicker to get to places when it becomes operational.
"For the suburbs which are the main beneficiaries, better price growth is not necessarily guaranteed, but for most buyers and tenants, a new station, a bus line or a bus stop tram will make this suburb much more attractive, "said Conisbee.
Main suburbs:
Gladesville
,
Coburg North
,
Campsie
,
Kariong
,
Homebush
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