7 Unexpected Factors That Can Impact Property Value 

Property value is influenced by various factors, some of which may be unexpected. While location, size, and condition commonly affect property value, several lesser-known factors can have a significant impact. In this blog post, we’ll explore seven unexpected factors that can influence the value of a property. 

Proximity to Public Transportation 

While many people may consider proximity to public transportation as a convenience, there’s no doubt that it can impact property value. 

Properties that are located near bus stops, train stations, or tram lines often command higher prices due to increased accessibility and convenience for commuters. Homes with easy access to public transportation attract buyers who rely on public transit for their daily commute, leading to increased demand and higher property values. 

What’s also interesting is that according to realestate.com.au: 

‘One Sydney study found property values within close proximity of new transport infrastructure rose in value as soon as construction began when compared with less connected neighbouring areas’.   

School Quality 

Perhaps this might surprise some of you, but people are known to move to a specific area to be zoned for a particular school! Believe us, it’s true! 

The quality of nearby schools can significantly impact property value, even for buyers without school-aged children. Properties located within highly rated school catchment zones are often in high demand, leading to increased competition and higher prices. The crackdown on out-of-are enrolments contributes to this, as principals cannot accept out-of-area enrolments if they’re over or at their student population cap. 

Families with children are willing to pay a premium to live in areas with top-rated schools, making properties in these zones more desirable and valuable. 

Crime Rates 

We can assume that potential buyers are often deterred by areas with high crime rates due to safety concerns, leading to decreased demand and lower property values. On the other hand, properties located in low-crime areas are perceived as safer and more desirable, resulting in higher property values. However, our research indicates that various factors, such as the type of crime and media attention, need to be considered. 

For example, a 2014 study published by the University of Technology Sydney (which we admit is some time ago) found that murder caused a 4% decrease in the value of Sydney properties within close proximity to the crime scene. However, there was no effect on the rental market. 

Another 2018 report by Infrastructure Victoria did seem to support the notion that crime rates affect property value – but only in regional markets and for crimes against people. It had no discernible effect in metro suburbs around Melbourne. 

Environmental Hazards 

In 2021, 9 News reported that ‘Residents in Sydney’s west claim they are struggling to sleep due to a foul odour coming from a nearby waste facility’. Yuck! Who would want to live there, right? 

Potential health risks associated with environmental hazards can deter buyers and lead to lower demand for properties in affected areas. Additionally, environmental cleanup efforts or remediation costs may further impact property values in these locations. 

Nearby Amenities 

Location is one of the most significant factors for buyers, and properties in prime locations, such as those close to the city centre, beaches, or other amenities like schools, hospitals, and shopping centres, tend to have higher prices – especially if they’re within walking distance. 

Living near amenities allows residents to easily access essential services and recreational activities, reducing travel time and enhancing convenience in their daily lives. For example, having a nearby park provides residents with green spaces for outdoor activities, exercise, and relaxation, promoting physical and mental well-being. 

Properties located near amenities are highly sought after and tend to have higher property values due to the desirable lifestyle they afford to residents. 

Zoning Regulations 

Zoning regulations can impact property values by dictating land use and development. 

On the other hand, properties located in areas with favourable zoning regulations that allow for flexible land use and development opportunities may experience higher property values. 

Searching for planning information about properties in NSW can be done online via NSW Planning Portal’s Spatial Viewer. Don’t forget -you’ll need the address of the property! 

Economic Development 

Economic development initiatives and infrastructure projects can positively impact property values. 

Buyers are attracted to areas with opportunities for employment and economic prosperity, leading to higher property values. 

Unexpected Factors Influencing Property Value 

The reality is that property value is influenced by many factors, some of which may be unexpected. 

Understanding these factors can help homeowners and potential buyers make informed decisions about buying or selling property. By considering the seven unexpected factors discussed in this blog post, you can better understand the complexities of property valuation and consider making strategic decisions to maximise your property’s value. 

If you’re navigating the complexities of buying or selling property in NSW and want expert guidance tailored to your needs and goals, contact us! Our team are here to support you every step of the way.