Hi all,
I was having a look at property sales in specific streets in North Ryde and Macquarie Park in Sydney, from 2000 to 2013. I wanted to observe the effect of a new train line opening (Epping to Chatswood Line in 2009) on property values at varying distances from the train line. I am using property sales data from onthehouse. To compare apples and apples I am looking at properties that have sold multiple times since 2000 so I can compare the individual capital growth of each property.
The street I am looking at which had limited capital growth (plenty of sales data) is Fontenoy Road in Macquarie Park. A street of old apartments, located approximately 600m - 1200m from Macquarie Park Railway Station. I find 26 properties that have sold before the train line opened in 2009, and resold after 2009. The average annual capital gain was 1.8%. This is in direct contrast to some streets in North Ryde which saw average annual capital gains of between 5-8% depending on the street (I have tried to exclude properties which have had renovations).
I would love to hear you opinion as to why properties in this street have not appreciated as much as properties in streets near North Ryde station (next station over) e.g. Parklands Road in North Ryde (~6% annual growth), Kent Road North Ryde, etc. While I understand property is very far from an exact science, I understand that several drivers behind capital growth include gentrification of an area (Macquarie Park Shopping centre was significantly upgraded in 2000) and new public transport (rail line). If I was ready to invest back in 2008 I may have invested in Macquarie Park at the time thinking that a newly opening rail line would appreciate property value and give me some quick capital gains - looking back now it appears that I would have made a poor investment (but this was not the case for North Ryde, literally 1-2 km away).
I was having a look at property sales in specific streets in North Ryde and Macquarie Park in Sydney, from 2000 to 2013. I wanted to observe the effect of a new train line opening (Epping to Chatswood Line in 2009) on property values at varying distances from the train line. I am using property sales data from onthehouse. To compare apples and apples I am looking at properties that have sold multiple times since 2000 so I can compare the individual capital growth of each property.
The street I am looking at which had limited capital growth (plenty of sales data) is Fontenoy Road in Macquarie Park. A street of old apartments, located approximately 600m - 1200m from Macquarie Park Railway Station. I find 26 properties that have sold before the train line opened in 2009, and resold after 2009. The average annual capital gain was 1.8%. This is in direct contrast to some streets in North Ryde which saw average annual capital gains of between 5-8% depending on the street (I have tried to exclude properties which have had renovations).
I would love to hear you opinion as to why properties in this street have not appreciated as much as properties in streets near North Ryde station (next station over) e.g. Parklands Road in North Ryde (~6% annual growth), Kent Road North Ryde, etc. While I understand property is very far from an exact science, I understand that several drivers behind capital growth include gentrification of an area (Macquarie Park Shopping centre was significantly upgraded in 2000) and new public transport (rail line). If I was ready to invest back in 2008 I may have invested in Macquarie Park at the time thinking that a newly opening rail line would appreciate property value and give me some quick capital gains - looking back now it appears that I would have made a poor investment (but this was not the case for North Ryde, literally 1-2 km away).