Effect of adjacent developments on older/existing unit values

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.

 

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

 

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

 

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

 

Do you mean, the interior can be replaced with newer design easily?

 

Yes exactly. - older units can have the interior renovated to generate higher rent. Their advantage of generally being larger than newer units remains.