Property

Which amenities really drive capital growth?



There’s no doubt that certain amenities make an area more desirable place to live. But not all amenities will drive demand and lift property values.

In fact, some might even drag prices down.

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Highly desirable amenities

While the demographics of the area will ultimately dictate which amenities are important, the following are appealing to most people and are correlated with price growth.

Transport links

You can’t underestimate the importance of good transport links since they can take you to whatever amenity you need.


Most would prefer to live close to public transport. Picture: Getty images

“The more frequently people visit an amenity, the more important that amenity is,” says Jeremy Sheppard, creator of DSRdata.com.au.

We usually travel to work five out of the seven days in a week. But we might only shop once or twice a week. So you could say that proximity to work, or to the transport mode that gets us to work, has an importance factor of five out of seven,” he says.

Good schools

For families, proximity to good schools is a top priority says, Sheppard.

“The kids may make their own way to school or may need to be dropped off. But again, this is a five days a week event so it’s also very important,” he says.

Shopping centres, supermarkets & coffee shops



Both renters and buyers are attracted to areas with easy access to shopping centres, supermarkets and coffee shops.

Many people will have a big grocery shop once a week, but pick up a few extra supplies or forgotten items during the week too.

Coffee shops are a sign of culture, gentrification and nearby employment. Their presence reflects the economic and social activity of the area.

 

Underrated amenities

Here are amenities that still carry some weight.

Lifestyle amenities

Although not everyone takes advantage of a public pool or a park, most people may rate the time spent there very highly.


Lifestyle amenities nearby can help keep property values high.

“Some people like to be defined by the lifestyle area they’ve chosen: Surfer, shopaholic, cyclist, party animal, etc. A person’s identity carries a lot of weight in their choice of location,” says Sheppard.

Child-related services

Young families drive demand, so the availability of child-related services is important.

“If the buyers who are pushing values are buying family homes, you need to consider the availability of childcare, education and family-related offerings,” says Cate Bakos, founder of Cate Bakos Property.

Good bars and food

Whether you’re a foodie or not, if the ‘foodie’ demographic are attracted to an area, they will bring their money along with them, says Bakos.


Renters and buyers prefer to have good food and bars near home.

“Young professionals with a focus on lifestyle spending represent a boon for a popular or gentrifying area. Even as tenants, they push up rents and make investing in the area appealing for investors,” she says.

Hospitals

Although hospitals are infrequently visited, people feel safer having one nearby. But the real benefit of having a hospital in the area is the pool of tenants and economic activity it creates.

Parking lots

Parking is especially important in denser areas, particularly neighbourhoods close to other transport links like train stations or close to shops.

 

Overrated amenities

Airports


Planes overhead can be a problem for property values.

There will always be people who want to be closer to the airport because they work there. An airport also creates a lot of economic activity via flow-on businesses.

But Sheppard points out that airports are a tremendous source of noise which makes their benefits overrated.

Places of worship

The “no religion” group is a fast growing group in the religious genre of the census.

Keep in mind that many people claiming to be a member of a religious group may only visit their place of worship once or twice a year anyway.

Source: Realestate.com.au
Author: Nila Sweeney