Factors that affect real property
Whether you are purchasing Melbourne preperty to live in or for investment, OR
you currently own a Melbourne property and you are contemplating selling or perhaps
refurbishing, subdividing or redeveloping it, knowing the factors that affect real property
values is essential and could save/make you a wheelbarrow load of
So what factors have an effect on Melbourne property values?
Location...Location...Location! You must have heard this one before so many
times whenever the subject of property is brought up. Indeed, "location is king" as far as
property values are concerned. A property's location in relation to amenities, communal
facilities, public transport, etc. is what gives its location value. For
||Location in relation
||schools/kindergartens, childcare, shopping, bus/tram
services, railway station, parks, playgrounds, community amenities, freeway access,
||shops, bus/tram services, railway station, parking,
restaurants, cafes, etc.
||bus/tram services, railway station, main road exposure,
carpark, adjoining retailers, demography of target market, size of surrounding
catchment, inbound/outbound trafiic side of road, etc.
||proximity to main roads, freeway access, proximity to
suppliers, seaport, airport, etc.
The most obvious are the tangible attributes of the site,
non-building improvements and building(s) on the site.
A property's site attributes such as its size, shape, frontage,
depth, soil type, gradient, view and exposure can individually or collectively increase/decrease
its value. Different types of property will be affected differently by each of these site
These include gardens/landscaping, retaining walls, paving,
swimming pools, tennis courts, fencing and services for residential properties. Or could include
car parking spaces, hardstand areas and security fencing for industrial propeties.
A building's size, design (especially facade and layout),
condition, quality, architecture, internal fitout, street appeal, amenities and other features
can add to or detract from a property's value.
A typical textbook explanation of this would refer to the relationship
between supply and demand. The textbook would add that economic forces relate to
the ability of the population to satisfy its wants, needs and demands through its purchasing
power. Examples: employment, stock of vacant buildings, buildings under construction,
occupancy rates, current market rents and construction costs. These textbook stuff, believe
it or not pretty much reflect the real world in many ways.
The legal climate at any given time may overshadow the natural market forces of
supply and demand. This may influence values via (a) provision of public services such as
transport, fire and police protection, and rubbish removal; or (b) building codes and zoning,
with special mention to those that obstruct or support land use. For example, many government
agencies will only lease an office building that achieves a set minimum energy efficiency
Other factors that could have an impact on
the value of your Melbourne property could include legal, psychological and environmental
attributes, and social and environmental forces.