Effect of adjacent developments on older/existing unit values

Discussion in 'Development' started by Howler, 7th Jul, 2019.

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  1. Howler

    Howler Member

    Joined:
    9th Jun, 2019
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    Location:
    Brisbane
    I have an interest in older established units (2br). It's not surprising some of these are located within walking distance to train stations.

    While this current scenario seems like a positive, I am worried how future higher density residential developments around train stations might affect the values of these existing units.

    - Would they (new builds) decrease the value of existing apartment dwellings because of increasing supply?
    - Or would they increase the value because the new builds (done correctly) increase demand/desirability in the area?
    - Or would they not change the value, because the new builds are an entirely different housing mix (e.g. more storeys, fancy amenities etc.)?
    - Is zoning a big factor? (E.g. would the new build potentially change your existing unit's zoning?)

    Thanks for any assistance.
     
  2. housechopper2

    housechopper2 Well-Known Member

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    5th Oct, 2016
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    Location:
    Melbourne
    New developments generally increase the value of older stock provided they aren’t next door overlooking or overshadowing.

    This is because newer developments tend to result in increased demand for an area. And all things being equal, older properties have more land content. In future, people considering buying in your area would be more keen on smaller units due to size and land content
     
  3. Marg4000

    Marg4000 Well-Known Member

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    Qld
    On the other hand, the newer, shiny buildings with more modern finishes and facilities will appeal to renters, affecting the desirability of older units. Together with increased supply, this may mean lower rents to attract tenants which can affect values.
    Marg
     
  4. housechopper2

    housechopper2 Well-Known Member

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    Location:
    Melbourne
    Agree with all except the last line. With interiors, old can become new quite quickly