[ad_1]
An analysis of property values shows there are plenty of ways to get a foothold in a desirable suburb, depending on whether buyers are willing to compromise.
The data reveals a difference of hundreds of thousands of dollars between the cheapest and most expensive parts of a suburb depending on several factors such as elevation, amenities and noise.
PropTrack geospatial data that maps median values across SA1 regions — small localities that make up a suburb — shows that while properties in some ultra-exclusive pockets command a big premium, at the other end of the spectrum, homes in other areas can trade at a discount, making it easier to buy in.
Use our interactive map to find the priciest and most affordable pocket in your suburb.
Certain aspects of a home’s location may be considered dealbreakers to some, but not a problem for others, and as buyers move further from a suburb’s most desirable areas, reduced demand can lead to lower prices.
It’s not just about the home
Multiple factors can influence home values, but the position of a property within a suburb can play a part for a variety of reasons, according to PropTrack senior economist Paul Ryan.
A home’s position relative to its suburb’s popular amenities, or alternatively, some of the area’s drawbacks can have an effect, as can the topography of the suburb and the typical size of properties in the area.
![Workers cottages](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 800 450"%3E%3C/svg%3E)
Areas of a suburb where homes are smaller tend to be cheaper, allowing house hunters to buy in for less. Picture: realestate.com.au/sold
“There’s cheaper pockets that are really lovely, they just tend to be smaller homes. For example, workers’ cottages as opposed to manor houses,” Mr Ryan said. “You can have a nice area, but people just want bigger blocks.”
A prime example of the effect that a home’s position can have on its value is Leichhardt in Sydney’s inner west.
Median house price heat map for Leichhardt, NSW:
In Leichhardt’s priciest pockets (highlighted red), houses are bigger and streets are a bit quieter. In the cheaper areas (dark blue), homes are smaller and closer to main roads, shops and transport. Source: PropTrack
Leichhardt’s cheapest pocket is in the suburb’s south, where smaller terrace homes are tightly packed into narrow streets near the shops and cafes lining busy Norton Street.
The pocket is also adjacent to Parramatta Road, which is one of Sydney’s busiest thoroughfares, and a key transport route to the CBD.
Find the priciest and cheapest pockets in your suburb
On the other hand, in the suburb’s north, where homes are more spacious and closer to parks, properties tend to be more expensive, despite being further from the action.
The data shows that buyers who prioritise the convenience of Leichhardt’s busier pockets over more living space in quieter areas can buy in for much less, given the median value in the suburb’s cheapest pocket is $661,000 less than in its priciest area.
Homes in Leichhardt’s cheapest pocket are close to the action, but also some of the smallest in the suburb. Picture: realestate.com.au/sold
Local real estate agent and Hudson McHugh director David Eastway said there were trade-offs to each pocket, and buyers based decisions on personal preference.
“The south western side is more convenient for public transport but the average block size is much smaller,” he said. “The prices might be lower because of the block sizes.”
“In the north western part, it’s usually wider streets and bigger blocks. It’s quieter, and some people prefer that.”
A similar trend is also evident in Ascot in Brisbane, where buyers who opt for a home east of Racecourse Road pay about half the price of a home in the suburb’s west, despite both areas having good access to Ascot’s amenities and transport routes.
Median house price heat map for Ascot, QLD:
In the most affordable parts of Ascot (highlighted blue), houses are about half the price of properties in the most expensive areas largely due to smaller average block sizes. Source: PropTrack
Ray White Ascot principal Damon Warat said homes in the suburb’s more valuable west were larger, character properties or modern new builds, but conscious buyers were increasingly drawn to Ascot’s more affordable pockets.
“Traditionally it’s always been a cheaper area,” he said. “It’s mainly 405 square metre allotments, workers cottages and a lot of old six-pack brick apartment blocks.”
“As there’s so much more migration, people compromise more and those surrounding areas are becoming more sought after.”
This three-bedroom renovated Queenslander on a smaller block is Ascot’s east sold for $1.5 million last year. An equivalent property in the suburb’s west, where blocks are larger and often elevated, could sell for double that. Picture: realestate.com.au/sold
Buyer’s agent John Carew of Mayfield Property Buyers said land size was one of the more obvious factors affecting values, and varying block sizes in different parts of a suburb can push prices up or down.
“Two very comparable homes, one on 200 square metres and one of 400 square metres, all things being equal the one on 400 square metres is going to be worth more,” he said.
Convenience can influence home values to an extent, Mr Carew said.
“Being able to walk to things does make life easier, so usually those properties are going to sell well because they come with a convenience factor,” he said.
Median house price heat map for Northcote, VIC:
The median value in the pocket of small houses right next to the station and adjacent to industrial buildings in Northcote is about $300,000 less than the suburb median, and $1 million less than the suburb’s priciest parts. Source: PropTrack
But while homes positioned near a suburb’s main shopping strip or public transport can provide easier access to shops or work, there can be downsides, Mr Carew said.
“If you’re right on top of [a train station], you’re going to be copping noise,” he said.
“You want to be convenient, but not to the point where you can’t have family and friends park if they want to visit, or huge crowds of people are on your doorstep on a Friday night.”
Looking for a bargain? Think planes, trains and automobiles
Two big turn-offs that can help keep prices lower are proximity to industrial areas and airports.
Buyers tend to prefer being further from industrial-zoned land to avoid noise and traffic congestion, and while living underneath a flightpath can be bothersome, it can also reduce housing costs for buyers on a budget.
This four-bedroom house in Cheltenham’s east sold late last year for $1.09 million, which was $116,000 less than the suburb’s median value and well below prices achieved in Cheltenham’s west. Picture: realestate.com.au/sold
One suburb that highlights the influence these factors have on prices is Cheltenham in Melbourne’s south east.
Homes on the western side of the Nepean Highway are hundreds of thousands of dollars cheaper than on the eastern side, which Ray White Cheltenham director Kevin Chokshi said was the suburb’s most desirable pocket.
“The beach side has a lot of things going for it,” he said. “It’s got some of the best golf courses in the world, and borders onto some really premium areas too.”
Median house price heat map for Cheltenham, VIC:
Houses in Cheltenham’s east, closer to Moorabbin Airport and industrial areas, are much cheaper than houses in the west, which are closer to the beach and sought-after schools. Source: PropTrack
Meanwhile, homes in Cheltenham’s east are closer to Moorabbin Airport, and in the north of the suburb near to industrial estates, which makes properties a little cheaper.
“There is a little bit of air traffic from it that plays a role,” Mr Choksi said. “But in my opinion, it’s pretty underpriced for what it is. The average price is still over a million dollars. It’s a nice area.”
Get your realEstimate™
Track your property’s value and unlock insights and data tailored for property owners.
Buyers who compromise on multiple aspects of their location can see big savings.
In Sydney’s Marrickville, houses on smaller blocks, affected by flight noise and closer to the industrial precinct — where former factories are making way for artisan bakeries and breweries — can sell for about half a million dollars less than bigger properties on the suburb’s fringes.
Median house price heat map for Marrickville, NSW:
Marrickville buyers who opt for smaller houses closer to industrial areas and flight paths can buy into the suburb for much less. Source: PropTrack
Mr Ryan said the many factors that make an area cheaper won’t necessarily make a property unappealing.
“Even in some of these affordable pockets there’s really nice homes,” he said.
[ad_2]
Source link
