Property Prices Surge Near Tracks

Properties located within walking distance of a train station are experiencing an upswing in price, new data from PRDnationwide has found.

According to latest research by PRDnationwide, Sydney properties that are located near a railway station have jumped by 12.1 per cent in the 12 months to December 2009.

The median sale price in those suburbs has increased significantly from $651,000 to $730,000.

Compared with Sydney suburbs not serviced by trains, house prices have only risen by 8.3 per cent (3.8 per cent less than suburbs with a train station). The median sale price in those suburbs has increased from $840,000 to $910,000.

PRDnationwide managing director Jim Midgley said ‘black spot suburbs’, that is, non-railway adjacent properties, have registered a small softening of 0.3 per cent over the last five years, indicating a higher demand for dwellings located in suburbs with direct access to a train station.

“Population growth continues in Sydney and this has prompted a high demand for places located near public transport facilities as the capacity of roads to cater for the influx of residents, particularly during peak traffic times deteriorates,” Mr Midgley said.

Source: Real Estate Business