New Zealand’s UFB initiative will bring faster internet speeds to approximately 800,000 Kiwi homes, and now recent research has found a link between the technology and sale price performance of Auckland suburbs.
The study, undertaken by real estate agency Bayleys used comparative data which analysed the suburbs across Auckland which were amongst the first to receive UFB in a 12 month period to June 2014, then matched those suburbs with the median house values in the area.
The findings were then compared to the Auckland-wide median house price for the same period which was approximately 9.5 percent year-on-year.
The data revealed that access to UFB in the majority of the suburbs were closely linked to property values in suburbs which outperformed regional sales price performance.
Auckland suburbs which were amongst the first to receive UFB in the 12-months to June 2014 were:
• Auckland CBD
• Pukekohe Central
Independent property data from the Real Estate Institute of New Zealand shows that property sales in these areas increased by the following amounts when compared with the same period a year earlier:
• Takapuna: 48 percent
• Birkenhead: 25 percent
• Northcote: 21 percent
• Auckland CBD: 15 percent
• Ponsonby: 23 percent
• Pukekohe Central: 14 percent
Auckland suburbs which have not yet received UFB technology include:
Property values in these suburbs showed an average increase of the following for the 12-months to June 2014
• Piha: two percent
• Muriwai: two percent
• Waimauku: - five percent
• Clevedon: -13 percent
• Drury: seven percent
• Takanini: 12 percent
Comparatively, the suburbs which received UFB in the first roll-out increased by an average of 24 percent compared with those which are yet to receive the technology which increased at a much lesser rate of 0.6 percent.
Bayleys national residential manager Daniel Coulson says that although it is difficult to decouple the influence that access to UFB has on property prices, the data undoubtedly highlights the importance of location and position when it comes to ranking one suburb’s attributes and land values above another.
“While there are a swathe of variables which play a vital role in property sale results, the research highlights that where the focus of UFB installments have been – along major transport networks and densely populated areas with supporting amenities and facilities, are the key ingredients that contribute to the value of a residential home to a prospective purchaser.
“Properties certainly stand to benefit from access to UFB and home buyers should be aware of the technology’s value.
The research also highlights that where the next likely roll-out of UFB will be in Auckland, are also potential future hotspots for residential activity.
“The reason for this is that they have obviously become areas of significant population gains and major infrastructure investment, and therefore demand is outpacing supply.
“These features are key selling points which add value to the ultimate sale price of a home,” Mr Coulson says.
“As the world becomes increasingly more dependent on technology to conduct business, connectivity has become a critical asset not only for the economy, but individuals and families, which are looking to the technology to provide home entertainment and vital communication links more than ever before.
“For many home buyers, having the added benefit of UFB serves two purposes come time to sell because the technology which is widely considered a fourth utility after water, electricity and gas adds value to the home while also increasingly topping buyer checklists as a ‘deal-breaker’ for potential purchasers,” says Mr Coulson.