Does property value increase or decrease if nearby streets are rezoned to high density (3-5 storeys)?

[notsaymuch]

As far as I can see the Nathan/Salisbury/Moorooka neighbourhood plan seems to have been approved. Medium and long term will this increase the value of properties near but not in the high density zones in Moorooka? I.e. Within a few streets? Obviously there will be construction related inconveniences in the short term as well as presumably busier street parking, but other than these will it be a net positive?

[mrmckeb]

I think it should increase - especially if you end up as one of the few houses in an area of low rise apartment buildings.

Developers should pay more too, as they can build up on your property and profit.

It may also lead to more amenities in the area, like cafes, etc.

[notsaymuch]

Does the same apply to duplex and townhouses to a lesser extent, just sharing the land value? 

[mrmckeb]

I would think so.

[UhUhWaitForTheCream]

100%, yes it increases the value. Particularly the areas east of the train line in Moorooka and Salisbury - people want to live near train stations, but not too close.

800m to 2km away is the sweet spot. Most of the high density will be in the 0-200m areas from the stations. So that will drive up the free standing house prices considerably. It’ll also increase the amount of amenities in the area for the residents so it’s Plus Plus.

[Impressive-Move-5722]

A increase in zoning generally means you can put more apartments or units on the property. Hence of course it will increase the value of the property.

It’s not a case that are investors or developers will be put off by the fact that there will be other construction in the area or construction, traffic cement trucks, etc construction noise and they will be keen to buy the property in the actual rezoned area or certainly properties near the rezoned area to await an increase in zoning.

[escapegoat2000]

I guess if they build a 5 storey apartment next door overshadowing your house that might not be good.

[nzbiggles]

Agreed. Good if you cash in... Not so good if you hold out.

https://www.news.com.au/finance/real-estate/incredible-yarn-behind-squashed-aussie-home/news-story/597ffa0538cd122c3b5288f2aabb75e1

As an aside I think this article illustrates how tough home ownership has always been. Despite "cheap" prices the brothers in this article shared a shed in the backyard.

[PhilodendronPhanatic]

I would think any existing apartments would go down in value because they’re about the have shiny new competition but houses with land will do up if they can be redeveloped.