Invisible factor hurting and helping home prices

There’s a hidden factor why some Australian properties just don’t sell and the reason is unexpected.

A crucial often overlooked factor could be the key to buying or selling your home and understanding what properties are actually worth.

By Kevin Ward, PropTrack Executive Manager Data Science and Analytics

Navigating the property market involves consideration of many factors, with traffic noise often overlooked despite its impact on property values.

A recent study from PropTrack and Ambient Maps highlights a clear trend – noise levels substantially influence property values. Several global studies support these findings, suggesting the results of the Victorian-based study apply nationwide.

The study looked at the impact of traffic, rail and aircraft noise across properties in metropolitan and regional areas of Victoria and identified properties are up to 18 per cent more affordable in certain areas. .

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Aircraft noise isn’t so good. Picture: NCA NewsWire / Gaye Gerard

The world-first research utilised PropTrack’s industry leading AI powered Automated Valuation Model with comprehensive environmental noise mapping data, setting a new standard in transparent property valuation.

When looking to buy, sell or invest in property, understanding the implications of traffic noise can support more informed decision making

HOW TRAFFIC NOISE CAN AFFECT HOME PRICES

For Buyers: Properties affected by traffic noise may be an attractive option due to their affordability and may be an excellent entry point for first-time buyers looking to build equity. These properties could act as a stepping stone to a quieter, more valuable location later. Noise levels should be evaluated in context of other factors like location, size, layout, condition and lifestyle.

For Sellers: Insights about traffic noise levels can help sellers adapt pricing strategies.

Homes in quieter areas often demand a premium and it’s beneficial to emphasise this benefit in the property’s marketing campaign. If a property is in a noisier area, competitive pricing may attract buyers who prioritise budget over tranquillity. Strategically acknowledging the impact of traffic noise can help broaden the appeal to the right buyers, for example a noisier environment could mean convenient local transport options.

For Investors: Noise should be a key consideration in property investment strategies.

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Strategically acknowledging the impact of traffic noise can help broaden the appeal to the right buyers. Picture: NCA Newswire / Gaye Gerard

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The PropTrack and Ambient Maps study indicates that prices are lower in noisier areas, allowing investors to identify more affordable opportunities. Factoring in noise levels can support investors to make informed decisions to maximise returns.

Just like location and aspect, it’s clear that noise is a key driver of property values, while homes in quieter areas generally attract higher prices.

Whether your goal is to buy your first home, sell a property, or invest wisely, being informed about the impact of traffic noise can help you make the right choice.

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Originally published as Invisible factor hurting and helping home prices