12/11/2009 - 00:00

Heritage not detrimental to price: research

12/11/2009 - 00:00

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HERITAGE-LISTED residential properties have proved to be just as valuable as an asset as similar non-listed properties, according to new research undertaken by the Australian Property Institute.

Heritage not detrimental to price: research

HERITAGE-LISTED residential properties have proved to be just as valuable as an asset as similar non-listed properties, according to new research undertaken by the Australian Property Institute.

The research, which was a study of sale-price performance of heritage-listed residential properties in three Perth suburbs from 1988 to 2006, concluded there was no statistically significant evidence that heritage-listed single residential properties had a price or growth rate different from otherwise similar properties.

Sales data for all house sales in Mt Lawley, Subiaco and Shenton Park were obtained from Landgate Valuation Services, and the annual growth in house sales values was compared with the Value Watch benchmark index, which provides a half-yearly measure of residential property values specific for each town or suburb in Western Australia.

The average prices of heritage-listed properties in the three suburbs rose 2.6 per cent per annum faster than the Value Watch measure for the whole market, while the average price of all properties in the three suburbs rose 2.3 per cent faster than the Value Watch index.

In Mt Lawley, heritage listed properties were found to have values about $35,000 higher than otherwise similar houses.

Price analysis undertaken by the Heritage Council of Western Australia also indicated heritage listing does not negatively affect value, with 25 per cent average annual growth in sales price from 2002 to 2008 at a heritage precinct around Brookman Street and Moir Street in Northbridge.

The unlisted houses in the surrounding streets experienced an average annual growth in sales price of 17 per cent.

Conti Consult Property Intelligence director Paul Conti, who also specialises in heritage properties as principal of Time Conti Real Estate, said there was a challenge provided by homebuyers making assumptions regarding heritage-listed properties.

“The misconception to do with heritage and historical properties, particularly those that are about to be listed either on the local council list or the state heritage council, is that it immediately devalues the property,” Mr Conti told WA Business News.

“The listing adds authenticity to the style and desirability of the home, and it’s that authenticity certificate that has some meaning and some value to the purists in the marketplace.”

Mr Conti said there was a segment of the residential real estate market interested in heritage-listed properties and historical homes.

“As we’re getting older as a nation, that is a growing sector of the market, because people who normally wouldn’t even have looked at it coming into the market, either through education, or through status symbol, and they are starting to appreciate the finer old homes,” Mr Conti said.

 

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