Zone 3 scrapping

Hi All,

With the pending abolishion of the zone 3 i am wondering if this will affect the property prices in any a particular way??? Is there a possibility that the zone 3 suburb prices catch up with the middle suburbs, i mean this in the relative sense...

Surely bit confused with all these zone changes as sometime back i heard the govt. is going to introduce the smart card systema dn abolish zone system altogether. Is that still going to be the case?
 
Assuming this is about Melbourne?? :confused: (you have no location)

I suspect the properties near the current 2-3 boundary will be affected most...

Cheers,

The Y-man
 
Oh , I always thought i was having that in my location but it wasnt so just updated my profile...

Yes i meant for melbourne only...

The reason i asked that question was cause i have heard the govt. is going to get rid of the zone system completely and then this news of zone-3 came and am sort confused now as to whether it wil have any effect on prices whatsoever...
 
To answer all the questions posed.

1. Zone 2 will be expanded to incorporate the existing Zone 3. This will make trips to the city cheaper for people in Zone 3 and a lot of suburban trips cheaper for people in zones 2 and 3.

2. The savings are documented here: http://www.metlinkmelbourne.com.au/news/media_releases/metropolitan_general/annual_cpi_adjustment For city trips from Zone 3 it's a saving of about $300 per year per commuting adult.

3. The above will happen on March 4, 2007.

4. The Smartcard is another thing altogether - to happen later. There is no plan to abolish zones.

5. I don't think the change in house prices will be that high. However the general effect is likely to be slightly negative for the outer parts of Zone 2 and slighly positive for the inner parts of the current zone 3.

6. Other fare reforms will benefit rural areas. Some of these will also be introduced on March 4. However transport fares would be an insignificant factor for all but the 'commuter belt' up to about 100km from Melbourne.

Peter
 
When I was at Uni in Melbourne (MANY years ago), I lived ikm from the unit, on a tram track- but the zone changed halfway along the trip between myself and the uni. As a student, I usually walked instead of paying an expensive (for me) tram trip- but on wet days, which were not too uncommon in Melbourne, it was a nuisance.

For simple ticket issuing transport systems, I can see a use for zones. But in today's computer society, it seems to me that much smarter systems could be easily built to accommodate those who don't take public transport only to the city centres. The take up of public transport could be greater.
 
For simple ticket issuing transport systems, I can see a use for zones. But in today's computer society, it seems to me that much smarter systems could be easily built to accommodate those who don't take public transport only to the city centres. The take up of public transport could be greater.

It's technically feasible, but there are two big things holding it back:

(i) certainty - with the current system people know how much they'll pay. As opposed to going into a shop and only knowing how much things cost when you reach the checkout.

(ii) the human element - for this to work people must tag off as well as tag on. This is the system proposed for Melbourne. The larger number of different fare amounts available the more critical this is.

For the better part of 20 years, successive governments have botched the implementation of various ticketing systems here. Ticketing is an issue in Melbourne like in no other Australian city and there have been blockades in the streets about it. To reduce the chances of doing it again, they've chosen the low risk path of sticking with the existing simple and popular zone fare system.

The property price implications of moving from a zonal to a distance-based fare system (where sections are small) would be similar to but less marked than if school zoning was abolished. Places near premium schools (or inner-city) would still be more highly valued, but the drop-off would be gradual rather than dramatic since hard boundaries have been replaced with continuums.

Canberra is one example of a city that abolished bus zones (in favour of a flat fare). This ought to improve the position outer suburbs vis a vis inner suburbs, but I suspect that its impact on house prices was minimal.

Transport infrastructure and service levels (which are generally poor in much of Canberra) have more impact on usage (and thus amenity, which becomes built into property prices) than pricing structures. A partial exception would be the impecunious, who'd hardly be influencing the housing market, except as renters.

Peter
 
The zone wouln't have a huge influence on me ( a few hundred $ per year in ticket costs isn't here or there compared with $10,000s in house prices). Access to, and convenience of public transport would have a much bigger influence :
- can I walk to the station / stop
- is there ample parking if I drive
- how frequent are the trains/buses/trams
- how late do services go
- do I feel safe
- how long will the journey take vs driving
 
I think one suburb it will help a lot is Ringwood. It is quite close to the city for a Zone 3 station, and being in Zone 3 I think is a bit of a turn off for people. Combine with EastLink coming through (meaning quicker to get to Ringwood, and less through traffic on Maroondah Hwy) and it means that transport is definitely improved.

- Dave99
 
I think one suburb it will help a lot is Ringwood. It is quite close to the city for a Zone 3 station, and being in Zone 3 I think is a bit of a turn off for people. Combine with EastLink coming through (meaning quicker to get to Ringwood, and less through traffic on Maroondah Hwy) and it means that transport is definitely improved.

Though Eastlink's proximity and Zone 3's abolition are not unique to Ringwood. These two factors also apply to Noble Park/Dandenong and Seaford/Frankston, with the former being a similar distance from the CBD.

Peter
 
Hey Investors !!
my first post here .. recently decided to dive in IP
Done my research ... saw a dozen suburbs
(inspected houses in Coburg, Reservoir, Altona, Noble Park)
And I was after Ringwood .. Here's why :-

1) Eastland Shopping Centre
2) Prices $260K - $350K (3br ... 700 sqm)
3) Very Nice Area (I thought personally)
4) Zone 3 = Zone 2 in March
5) Growth looks decent (from Domain 2006 Spring Guide --
Growth from last Year+4.9% Trend +11.3% )

What are ur opinons/ suggestions ?
Cheers
 
Welcome auzie... i am sure you will get alot of information here...

There was recently a thread about ringwood which discussed this suburb in detail. Do a serach on this forum and you should be able to find it...

good luck
 
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