eastern suburbs sydney
The Eastern Suburbs of Sydney is home to some of the most expensive real estate in the world. Image – Canva.
  • Location, location, location remains the most important
  • Nearby amenities such a parks and shops not as important as you think, data suggests
  • Being near water helps

What makes a suburb desirable?

Is it the cost alone? Easy access to major roads? Good public transport? Local restaurants? Dog parks?

Well, in Australia, it remains the old fashioned mantra of “location, location, location” according to PropertyPricer’s CEO and founder Ross McLelland.

According to data from PropertyPricer, an Australian property valuation site that mathematically analyses over 1,000 different features to predict house prices, a property’s distance to various hospitality venues and shopping has little to no impact on property prices.

Additionally, data shows that while proximity close to local amenities, such as public transport or schools often influence peoples decision to buy or reject a property, this rarely affects the selling price. The only notable exceptionis proximity to a train station.

“In fact, access to amenities only adds around 5% to the value of a property,” said Mr McLelland.

“For example, a $1m property may be worth an additional $50,000 maximum if it is close to shops, schools, and cafes.

“Most people will buy the house they want, even if it is further away from facilities, with price and liking the home itself being the most important factors in their decision-making process.”

ross mcelland
Ross McLelland. Image supplied.

So, if proximity to places such as restaurants and shops aren’t driving where Australians want to buy, what is?

Closeness to the water is one factor

sydney waterside
Leaving near water helps. Image – Canva.

PropertyPricer’s analysis shows properties such as $1.5 million house in outer Sydney would be worth as much as $5.4 million if the house was “cut and paste” to a harbourside or beachside location.

Of course, many homebuyers, especially first-home, are priced out of such markets.

However, such buyers, including price-savvy investors, are taking advantage of remote working by venturing to beachside suburbs further away from the main cities.

“No longer confined by the distance of a daily commute, professionals and investors are able to cast their nets even wider,” explained Mr McCelland.

“For those looking to relocate to less popular cities and states, there are still some bargains to be found.

“So if you’re a buyer in the current market, remember the selling price of a property doesn’t always reflect its true value, especially in our current artificially inflated market.

“There are many desirable suburbs but ultimately price will always dictate what people can afford and in the current market areas that were previously seen as unavailable are now becoming options for first-home buyers who have been priced out of everywhere else.”

You May Also Like

Space efficient design is cost efficient design

Poorly designed big homes can be more expensive without any of the benefits.

Why is Australia experiencing a rental crisis?

House rents soared by $55 per week, while unit rents rose by some $80 per week.

Queensland’s $1.3B housing plan: The good, the bad, and the ugly.

Concerns raised over ambiguity in the plan’s execution, and its effectiveness, emphasising need for deeper solutions to housing crisis.

Fact vs fiction – Separating myths from reality in the negative gearing debate

Nexia Australia’s David Montani revisits negative gearing discourse, questioning its impact on rents and housing supply.

Experts Corner by The Property Tribune

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko's partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Continue reading

Top Articles

Expert tips on how to be a successful property investor

Property expert and buyer's agent, Lloyd Edge, shares his insights.

Australian commercial property update: Industrial and tourism assets lead the pack in trying times

Commercial assets have faced volatility recently, driven by financing changes and demand fluctuations from institutions and funds.

WA has emerged as a property investment hub, and why that's a good thing

Eastern investors chase Perth's affordability, doubling the distance between home and investment in 2023, reveals MCG research.