Living near an Aldi adds $8700 to your house value, UK study finds

IT MAY be pushing down grocery prices, but the German discount supermarket is having another effect — in the opposite direction.

PERTH NOW — Grand opening of Aldi Kwinana, one of four stores opening today. Photo by Daniel Wilkins. PICTURED-

IT’S the other “Aldi effect”.

In the UK, houses with the German budget supermarket on their doorsteps have seen their values rise by £5,000 ($8700) within three months of the stores opening, The Sun reports.

According to new research, the “Aldi effect” has boosted property values in nearly every location where the low-cost brand has opened a new shop — including the exclusive Chipping Norton, previously home to former UK Prime Minister David Cameron, which saw prices surge by a colossal 133 per cent.

The new study by My Home Move, a mover and conveyancing service, looked at the house prices three months before and three months after the stores opening and compared them to the national average.

Aldi, which is the UK’s sixth largest supermarket chain, plans to open around 80 stores across the country through out 2016.

“Our own research has shown that a third of home movers chose their new property based on its proximity to shops and local amenities — and as such we are not surprised that the recent popularity of Aldi, with its cheaper lines and award-winning products, has had a positive effect on the value of local homes,” My Home Move chief executive Doug Crawford said.

“A few years ago people were talking about the Waitrose effect, but today it seems home buyers are choosing to take the ‘swap and save challenge’ to heart, as locations such as South Ruislip, Billingham and Poynton have increased in popularity.

“The only exception in our research was Reading, where prices have dropped — but with three stores within a two mile radius of the city centre it may be that consumer demand has now been met.”

Reading was the only location which saw a decrease in property prices, with the remaining 10 locations seeing home values increase between one per cent and 133 per cent.

This article originally appeared in The Sun and was reproduced with permission.