Why electric vehicles could increase values on no-go roads
By Sourced Externally
August 16, 2022
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Electric cars could signal the death of noisy neighbourhoods, increasing the value of properties once shunned for being on a busy road.
Sales of electric vehicles in Australia have tripled in a year, from 6900 in 2020 to 20,665 in 2021, with cars, vans, trucks, utes and buses all offering electric vehicle alternatives, according to the Electric Vehicle Council.
Residential developers are also jumping on board, with many new projects offering charging points and even EV share vehicles that can be booked in advance.
Terrace homes at West End, a luxury apartment complex at Main Beach, a 27-townhouse complex at Marsden and a residential tower at Maroochydore will all feature charging stations.
Ray White New Farm principal Matt Lancashire said noisy roads could be poisonous for property values, but ‘no go’ roads would likely become more palatable once quieter vehicles hit the roads.
“If you take away the noise factor, suddenly there is a bigger buyer pool who won’t have noise as a concern,” Mr Lancashire said.
“While I doubt values will double, just having more buyers undeterred by noise will be a plus for values.”
Apollo Auctions director Justin Nickerson said noise and safety were the two most common issues for buyers.
“These are the things that people quote to us a lot when looking at a main road,” he said.
“So electric cars will help with the noise and pollution, and will assist with noise being less of a barrier for buyers.
“But whether that alleviates concerns around safety remains to be seen.”
Samford Road morning traffic. Photo Ric Frearson
Mr Nickerson said there was always a pool of people who flatly refused to live on a busy road, while others were more concerned about resale value.
But he added that when the market was red-hot, some of those concerns could be overlooked.
“When the market is like it was in 2021, that is less of a concern and a main road property can be an entry into a suburb they can’t get into otherwise,” he said.
“But when the market tightens, those smaller concerns are magnified.”
On one of Brisbane’s busiest commuter roads, Samford Road, this house has three bedrooms and sits on a 607sq m block. It sold for $706,000.
A three-bedroom house with a pool on busy Moggill Road at Kenmore recently sold for $825,000, while another smaller three bedroom house without a pool just a few streets away sold for $900,000.
On peak hour congested Samford Road, a three-bedroom house on 607sq m sold for $706,000 in June while a nearby two-bedder on 405sq m sold for $900,000 in March.
Mr Lancashire said some buyers did not mind “the noise and vibrancy of a busy road”.
“If it is in Newstead, people expect the hustle and bustle, but if it is in the suburbs, that’s a different story,” he said.
On the Gold Coast, Adam Phillis, of Phillis Real Estate, said buyers were hesitant to invest in suburbs along the path of the pending Coomera Connector major road upgrade.
The planned superhighway is a huge infrastructure boost to the northern Gold Coast, stretching 45km from Nerang to Logan and easing congestion to the M1.
But Mr Phillis said the potential traffic noise had a huge impact on house sales within a riverfront acreage estate close to the new road in Helensvale.
“Nine times out of ten the feedback is about the road noise, so if we had electric cars, that concern would be taken out of the equation and I’d expect prices to increase by up to 30 or 40 per cent,” Mr Phillis said.
A luxurious home on a manicured 2,035sq m parcel of land at 10 River Cove Pl was listed for $3.5m, but recently sold for just over $3m.
And 11 River Cove Place was on the market for 270 days before finally selling for $4.825m late last year, to a buyer who had researched the M1 upgrade and was confident measures including sound-proofing and new road base would mitigate noise.
“At the moment, people are reluctant to buy due to the Coomera Connector,” Mr Phillis said.
“Buyers say, ‘we love the area, but the road noise is something we have to factor in the future’.”
Herron Todd White director Janine Rockliff said that while improved infrastructure appealed to investors, traffic noise was a key indicator of quality of life.
“It is a known fact that excessive traffic noise can bring down the value of houses and the smart investor should consider carefully the alignment of the future highway to avoid potential degradation in quality of living and potential loss in value,” Ms Rockliff said.
Electric Vehicle Council CEO Behyad Jafari said the health benefits of electric vehicles were already being recorded in places like California, with a higher uptake of zero-emission vehicles.
“It’s a little too early for noise pollution but the data for air quality improvements is coming through,” he said.
Currently electric vehicles make up 2 per cent of total car sales in Australia, however projections for Queensland show that could rise to between 22 and 49 per cent by 2030, depending on whether incentives are introduced in line with the major markets of the USA and Europe.
The Queensland Electric Super Highway also now consists of 31 fast-charging sites from Coolangatta to Port Douglas, with 24 more sites being rolled out across regional Queensland.
The Queensland Government also wants 50 per cent of new passenger vehicle sales to be zero emissions by 2030.