Author:Shane Martin, David Norman
Source:Auckland Council Chief Economist
Many things affect property values in more or less obvious ways.
Obvious examples are the premium paid for waterfront properties or for larger houses over smaller ones. Of greater interest, however, is how much these attributes contribute to a home’s value – while holding everything else equal.
Less obvious attributes include location in the “double grammar” zone, which adds about $130,000, and the “goldilocks” factor of location – being neither too close nor too far from certain other amenities.
Other factors, such as cladding associated with the leaky homes era, lead to a discount in price.
There are implications for local and central government policy from these findings.
Insights. Topical commentary on the Auckland economy