New Zealand’s ultra-fast broadband initiative will bringfaster internet speeds to 800,000 Kiwi homes, and recent research has found alink between the technology and Auckland house prices.
Real estate agency Bayleys analysed median house prices forthe 12 months to June 2014 in the first Auckland suburbs to receive UFB.
It then compared these with the Auckland-wide median pricegain in the same period, of 9.5 per cent.
It found prices in suburbs with access to UFB outperformed thosein areas that the improved infrastructure has yet to reach.
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Among the first Auckland suburbs to gain faster broadband inthe year to June 2014 were:
• Takapuna
• Birkenhead
• Northcote
• Auckland CBD
• Ponsonby
• PukekoheCentral
Real Estate Institute of New Zealand figures show growth inproperty prices in these areas that year was significantly above the Aucklandmedian:
• Takapuna -48 per cent
• Birkenhead -25 per cent
• Northcote -21 per cent
• Auckland CBD- 15 per cent
• Ponsonby -23 per cent
• PukekoheCentral -14 per cent
In comparison Bayleys looked at Auckland suburbs which haveyet to receive UFB, such as:
• Piha
• Muriwai
• Waimauku
• Clevedon
• Drury
• Takanini
Property prices in most of these suburbs grew much moreslowly in the June 2014 year:
• Piha - twoper cent
• Muriwai -two per cent
• Waimauku -five per cent
• Clevedon - 13per cent
• Drury -seven per cent
• Takanini -12 per cent
Overall the agency’s research shows that prices in thesuburbs which received UFB in the first roll-out rose by an average of 24 per cent,while those in areas on the fast broadband waiting list increased at a much lowerrate of 0.6 per cent.
Bayleys national residential manager Daniel Coulson saysthat although it’s difficult to decouple the influence that access to UFB hason property prices, the roll-out has been concentrated in suburbs with the attributesbuyers are looking for – populated areas on major transport routes withsupporting amenities and facilities.
“While there is a swathe of variables which play a vitalrole in property sale results, this research highlights that these are the keyingredients contributing to the value of a residential home for a prospectivepurchaser,” he says
Properties certainly stand to benefit from access to UFBand home buyers should be aware of the technology’s value, Coulson says.
The research also indicates that the next areas to get UFBare potential future hotspots. “The reason for this is that they have obviouslybecome areas of significant population gain and major infrastructureinvestment, and therefore demand is outpacing supply.”
For many householders, ultra-fast broadband is now anexpectation.
“These days the technology is considered to be a fourthutility after water, electricity and gas. It adds value to the home, and increasinglyit tops buyers’ checklists as a deal-breaker for potential purchases,” he says.
