Proximity to public transport is often seen as a major advantage for home buyers. However, new research reveals the significant impact that being close to a busy road, railway, or flight path can have on property values.
Location, location, location.
When searching for a new home, most people prioritize finding a place near public transport and other convenient infrastructure. But how close is too close? And can increased transport noise lead to decreased property values?
New research by PropTrack and Ambient Maps suggests it can.
How much can traffic noise affect property prices?
The study analyzed noise pollution across Victoria from busy roads, railways, and air traffic, comparing these findings with nearby property sale prices over a five-month period.
Here’s what the findings revealed for every 10-decibel (dBA) increase in noise:
- Roads: An average decrease in property value of 6% for every 10 dBA increase in road noise.
- Rail: An average decrease of 4% for every 10 dBA increase in rail noise, even after accounting for the convenience of living near a train line.
- Aircraft: An average decrease of 6-9% for every 10 dBA increase in aircraft noise. Properties outside the flight path can experience noise levels 20 dBA lower than those within the flight path, leading to significant differences in property values.
For example, a 5% decrease on a $1 million property equates to about $50,000.
What does a difference of 10 dBA sound like?
The study includes a graphic on page 8 illustrating the differences between a 45 dBA home and a 75 dBA home. Here’s a description:
- 45 dBA home: Located in a quiet cul-de-sac with no through traffic and no nearby public transport.
- 55 dBA home: Situated on a two-way suburban street with minimal traffic.
- 65 dBA home: Positioned on a main road with four lanes of traffic and regular public transport such as buses or trams.
- 75 dBA home: Located on a six-lane arterial road with trucks, buses, and heavy traffic.
The silver lining
While owning a property close to a busy road, train station, or flight path can impact long-term investment value, it can also provide an opportunity to enter the property market sooner with a home that suits your family’s needs.
There are many ways to soundproof your home, such as double glazing, sealing gaps, using solid core doors, soundproof curtains, insulation, and soundproof paneling.
The key takeaway when buying a home: don’t let the “location, location, location” mantra pressure you into overpaying, especially if noise is a factor.
If you’re currently in the market to buy, contact us today to assess your borrowing power and get a better idea of what you can afford.