The Impact of Increased Density on Residential Property Values in Sydney, New South Wales

Abstract

This paper investigates the impact of high-density development on low-density residential property values in Sydney, New South Wales (NSW). To do so, it conducts a literature review to ascertain the existing knowledge surrounding the study of property valuation and its economic and societal implications. Limitations within academia were identified and addressed as the objectives of this research. Subsequently, the key objective of this research is to “study the sociological factors dictating the attractiveness of low-density (LD) properties within proximity to high-density (HD) local characteristics.” In addressing this objective, research questions explore the interactions of an area’s local characteristics, its residents’ property types and the perceptions surrounding these interactions. This research studies property value through the lens of market perceptions, as the price of land is a basic indicator of the attractiveness, economic value and amenities accessible to a specific site. Through this seminal understanding, the research methodology was formed in which a questionnaire was completed by Sydney residents, providing data for analysis and discussion. The primary research question determines that “low-density residents perceive high-density local characteristics to be attractive”. Through this determination and its associated discussion, this study proposes that ‘if high-density local characteristics are able to be utilised by low-density properties, low-density residents will consider these properties to be more valuable’.