Rail services boost home prices: survey

PROPERTY

Is your residential or investment property on track to record better-than-average growth in value? Well, being near some tracks certainly helps, according to the latest research from PRDnationwide.
It shows that growth hotspots are emerging along the city’s railway corridors, with easy commuting to the Brisbane CBD the catalyst for strong price growth in suburbs around Brisbane railway stations.
The research has shown values in the suburbs serviced by trains jumped by 10.3 per cent in the 12 months to December 2009. Suburbs without train services registered house price rises of 7.7 per cent - that’s 2.6 per cent less.
The median sale price in suburbs serviced by rail increased from $535,000 to $590,000, compared with a rise from $500,000 to $538,500 for suburbs without a rail link.
The better-faring suburbs are dotted along the lines of Brisbane’s Citytrain network stretching from Salisbury to Virginia.
PRDnationwide research analyst Josh Brown says that as traffic congestion worsens, Brisbane’s railway suburbs are booming with rising property prices and increased demand from city workers.
“Population growth in Brisbane is surging ahead and the capacity of roads to cater for the influx of residents, particularly during peak traffic times, is such that alternative methods of transport are in high demand.
“With the increasing costs of fuel, parking and traffic congestion, buyers are seeking areas of convenience and high amenity negating the need for frequent car usage.
“This has created an increased demand for suburbs located along, or within close proximity to major train lines as opposed to suburbs without train stations.”
The PRDnationwide research shows suburbs with a train station have experienced a 16.3per cent growth in demand from the half year period ending December 2008 to record 1,564 transactions.
Black spot suburbs – those not serviced by rail - have had 2.9 per cent less growth over this period with a 13.4 per cent increase taking sales to 1,758 indicating the higher demand for dwellings located in a suburbs with direct access to a train station.
Mr Brown said areas in Brisbane that are well supported by rail would continue to perform strongly and offered a great lifestyle opportunity for investment.
“The North Coast Rail Line suburbs have recorded a 17.2 per cent spike in growth over 2009 to record a final median value of $566,750,” he said.
This was followed by the Pinkenba Rail Line suburbs registering 16.7 per cent median price growth to record a median price of $857,500.
“The most affordable rail line within this precinct is the South Coast Rail Line suburbs with a final median price over the six months to December 2009 of $516,000,” Mr Brown said.
This was followed closely by the Ferny Grove Rail Line recording a median of $535,000.
The highest median price was recorded on the Pinkenba Rail Line with $857,500 recorded over the same period.
“In terms of the capital growth sustained over 2009, station suburbs have performed marginally better with an average of 9.7 per cent p.a a year capital appreciation, 0.3 per cent p.a. more than black spot suburbs.
“Individually, the Ipswich Rail Line and the North Coast Rail Line suburbs have achieved the most capital appreciation in housing stock, recording 10.6 per cent and 10.3 per cent p.a. average growth respectively.
"The most affordable, South Coast Rail Line has recorded a 27.7 per cent increase in sales activity from the previous December 2008 half year taking sales to 316 for the most recent December six month period.
“Continuing urban sprawl in Brisbane, coupled with an increasing number of people seeking a haven away from a busy city life, has prompted strong demand for property in areas away from the inner city yet still close to major transport corridors,” Mr Brown said.