Here’s an interesting driver of property prices…
Findings in a report commissioned by American Express as part of Shop Small Australia month, showed that 47 per cent of the 17 per cent of Australians currently in the market to buy a home would invest an additional 4.4 per cent — or $30,486 — to be near a cluster of local shops.
The analysis confirms that each small business in close proximity to homes delivers an average increase of $164 to the median house price, holding other factors constant.
The types of small businesses people wanted to live near varied
- 68 percent said access to healthcare services was very important;
- 64 percent wanted specialised convenience stores such as a deli, butcher, fruit shop, fishmonger and the like;
- 59 percent wanted to be close to amenities such as schools, libraries and newsagents.
Lowest on the priority list were professional services firms such as accountants and lawyers.
The report, The Economy of Shopping Small, shows that the physical benefits delivered by small businesses extends beyond house prices.
- Almost two thirds (62 percent) of Australians agree small businesses improve the aesthetics of the surrounding area,
- 60 per cent say they boost the standard of living, and
- 58 percent state they provide community support in the form of donations.
Source: Shop Small