A house can cost $50k more just being on the right side of the road, why?
Brunswick Road - Princes Hill / Calrton North is more expensive than Brunswick
Sydney Road - Brunswick East is more expensive than Brunswick West
Banksia St - Eaglemont is more expensive than Heidelberg
It suggests that the name of the Suburb carries a lot of weight. Is this unique to Melbourne?
Keen to hear your thoughts.
4 Comments
The name of the suburb certainly does have a lot of importance, but that's on paper and when you're standing there on the street it's often a different story.
Bentleigh and Brighton East is a good example of this.
Hi AprilFlame,
Yeah it can a very interesting phenomenon especicially in densely populated area. Certain suburbs have 'stigma's' attached to them, and in that carries people's willingness to pay more or less just say they live in 'suburb X'...cough Canterbury, Brighton cough
You find it in suburbs like Balaclava, where people just call it St Kilda East. Once sounds better that the other, therefore a higher purchase price.
But we don't have nearly the problem that they have over in America where they have the concept of neighborhoods, in that they are not 100% clearly defined. Some 'realtors' as they are called often over time force the perception of a particular street belonging to a neighborhood just so they can bump the asking price. It's a little on the shady side.
AJ
I've seen this alot in Canterbury with prices much higher on one side of the road (Camberwell vs Canterbury vs Deepdene). You get the same in Kew/Hawthorn.
Just like a prestige car people often just pay for the name.