Hi all,
I've come across a house near a train station that I'd like to purchase, but I've noticed that there is a plan for a residential developer to build a high-rise apartment (8 storeys) on a 3000+ sqm land located on the back of the house on another street.
Can the value of the property decrease or stagnate in growth due to the fact that a high rise apartment is built behind the fence?
View of apartment out of certain windows - wall or into someone elses apartment.
Loss of any natural light.
Loss of tress/garden spaces - loss of natural natural shade, temperature, sound blocking, view.
Poor planning causes loss of on street parking. They always try to skimp on the off street parking. They would use the excuse of being near a station so why would the people living there need a car?
Have had a few pop up around me in past rentals. So I would avoid. Although the property price might increase due to other investors wanting to build more apartments.
Loss of breeze/ventilation
If you have to ask then you already know the answer as you are one of the buyers who will be looking at it when you want to sell.
Thank you both. I think I liked the house a lot that I wanted to deny the obvious….
Really how can anyone say?
If your unit costs $200K or $400K or $800K would it decrease if the new units were $600K. Are they of the same quality. Do they have to walk around the block to get to the station, does that other block face factories, roads etc
So without knowing all the details how can we say. The price now might have factored in the impact.
So how long is a piece of string?
ALL factors equal, more units on the market for buyers to consider would cause a drop in the price. Thats all that can be said.
Anyone can say what they want and if you buy a place with no 8 story place next door for $X and then a 8 story place goes up and the balconies overlook your place and there is overshadowing during the day so you only get say 2 hours of sun per day in summer then……
has the planning actually been approved by the council?
Why wouldn't these ~$20k salary council members not approve it? Wink wink.
of course they will approve it because they can collect lots of money through rates. more units=more rates
Councilors don't get paid extra from rates they set though.
Not yet, but the council's structure plan shows that the council wants the developer to build a 8+ storey commercial + residential building.
More likely for the developer to submit a proposal for even higher building that will be approved, than for the project to not be approved.
Yes
No house has a price tag, as such, on it. The value of a house is only as much as what buyers are willing to pay for it.
To some, the existence of the apartment building may be a non-issue and willing to buy the house regardless. As example, I saw a heritage house sold for $5mil and it was opposite a train line - the auction paused as trains went by! For me, the train was an issue, but clearly not to others.
If someone simply wants to live in the area/precinct, then the additional option of apartment means more choice and less demand for the house you're after - so possibly less price to buy and sell.
It really depends on what the market thinks of the development. To me, if the high rise development came with a supermarket as an anchor tenant and some cafe/restaurants, I feel that my house would go up in value.
Everyone values different things so its true market value is what the marginal dollar the next buyer is willing to pay for. There is no clear up or down direction in this situation. The market has really surprised everyone with even absolute crap selling for record prices.
Right at your back fence? There'll be a lot of noise from 4am onwards when they start unloading stock and foot+car traffic throughout the day.
located on the back of the house on another street
Obviously this depends on the size of the street. If it is 5m from your backyard then it might be a problem. I personally dont mind additional foot traffic. In fact, it makes me feel safer when im walking from the station back home at night. If i think this is a house i love and location is right, i can put up with minor inconvenience.
It looks like the seller of the house has a different view, it could be OP's gain.
The 3000+sqm land is located on the back of the fence. No side street or direct access between both streets.
Sorry, I should've also mentioned that the high rise will not have access to the street the house is located on. There's no alleyway or sub-street between both streets. The property street is still residential. The 3000+ sqm land is located just behind the fence of the property I'm interested in.
personally, i wouldn't want to live next to a high rise. You always read about people throwing crap off their balconies into neighbouring yards. Not only that, depending on the tenants/owners of the high rise apartments, they tend to leave their crap all over the street (especially if its near a university, or something like that - things like mattresses, chairs, tables)
Yes.