‘Close to public transport’ is often touted as a plus for home buyers. But new research shows just how much close proximity to a busy road, railway or flight path can impact property values.
Location, location, location.
When you’re hunting for a new home, most people are on the lookout for an abode that’s close to public transport and other convenient transport infrastructure.
But how close is too close? And can an increase in transport noise result in a decrease in property value?
New research by PropTrack and Ambient Maps suggests so.
How much can traffic noise impact property prices?
The study analysed noise pollution across Victoria from busy roads, railways and air traffic. Then it measured those findings against nearby property sale prices over a five-month period.
Here’s how the findings stacked up for every 10 decibel (dBA) increase in noise:
Roads: an average decrease in property value of 6% was seen for every 10 dBA increase in road noise.
Rail: an average decrease of 4% was seen for every 10 dBA increase in rail noise (even after accounting for the benefits of the convenience of living near a train line).
Aircraft: an average decrease of 6-9% for every 10 dBA increase in aircraft noise. Given that properties outside the flight path can experience noise levels that are 20 dBA less than those within the flight path, the difference in property value may be significant.
By way of example, a 5% decrease on a $1 million property is about $50,000.
What does a difference of 10 dBA sound like?
Included in the study on page 8 is a neat little graphic that illustrates the differences between a 45 dBA home, all the way up to a 75 dBA home.
We’ll do our best to describe it to you below if you can’t click the link above:
45 dBA home: Located in a quiet cul-de-sac with no through traffic and no public transport nearby.
55 dBA home: A home in a two-way suburban street with minimal traffic passing by.
65 dBA home: Located on a main road with four lanes of traffic and public transport such as a bus or tram regularly passing by.
75 dBA home: Located on a six-lane arterial road, with trucks, buses and plenty of cars travelling along it.
The silver lining of it all
Sure, owning a property close to a busy road, train station or flight path could impact your home’s long-term investment value.
But it can also allow you to break into the property market in a home that’s a great fit for your family sooner.
There are also lots of ways you may be able to help soundproof your home, such as double glazing, sealing gaps, solid core doors, soundproof curtains, insulation and even soundproof panelling.
The main thing to be aware of when you’re buying a home: don’t let the “location, location, location” sales pitch twist your arm into overpaying – especially if noise becomes a factor.
So if you’re currently in the market to buy, get in touch with us today and we’ll assess your borrowing power to help give you a better idea of what you can afford.
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