Join Australia's most dynamic and respected property investment community

What does redevelopment mean for house prices?

Discussion in 'General Property Chat' started by frados, 26th Mar, 2016.

Tags:
  1. frados

    frados New Member

    Joined:
    26th Mar, 2016
    Posts:
    1
    Location:
    Melbourne
    Hi All,

    I'm interested to hear what peoples general observations are of house prices in suburbs undergoing significant redevelopment (e.g. subdivisions)?

    So I guess there would be two competing effects here being:

    1. Increased supply of redeveloped properties (e.g. townhouses, units).

    2. Decreased supply of houses due to redevelopment activity.

    Does the overall increased supply of property due to redevelopment win out (therefore house prices drop or grow at a slower rate) or do house prices become dearer as they become scarce?

    Or is this something that can't be generalised and is location specific? To give some context I'm thinking in terms of the western suburbs of Melbourne.

    Cheers.
     
  2. big max

    big max Well-Known Member

    Joined:
    30th Nov, 2015
    Posts:
    1,032
    Location:
    Gold Coast
    Generally positive for houses and blocks of land.
     
    frados likes this.