There has been much conjecture about Perth’s transport system and hot debate about the importance of 'Transit Oriented Developments' (TOD’s).
But a detailed study completed by PropertyESP spells out quite clearly that TOD’s do provide a capital advantage to neighbouring suburbs and their properties.
The study analysed 20 years of sales for Success/Atwell and Cockburn Central in comparison to Ellenbrook in the north (totalling 24,386 sales from 1994-2014). Both these locales were prospering areas and also offered extensive retail space.
As can be seen in the below graph, house prices were on par for all suburbs and demonstrated steady growth until 2007, when the TOD at Cockburn Central was introduced – and this is when we saw prices begin to increase.
In conjunction, there was an increase in professionals and managers in Atwell and Success during the period 2001 – 2011, unlike their counterpart suburb Ellenbrook.
This is a similar trend seen with other TOD based suburbs including East Perth.
When you see the economic gains that are clearly linked to a TOD, it demonstrates why developers and Local Governments should be lobbying State and Federal Governments for more transport networks.
TOD’s and transport linkages are vital to Perth’s ongoing success and while there may be arguments back and forth about who will fund these, it is quite clear that there are real gains to be made from all parties, if you actually commit to this investment.
Source: PropertyESP, 2016