PropTrack, in collaboration with Ambient Maps, has launched a study that measures the impact of transport noise on residential property values in Victoria.
This initiative, part of a larger effort to incorporate environmental, social, and governance (ESG) factors into PropTrack’s AI-driven Automated Valuation Model (AVM), comes as property prices are increasing, mortgage rates are elevated, and housing affordability in Australia is under pressure.
Noise pollution from roads, railways, trams, and air traffic significantly influences property desirability and, consequently, market values.
Traditional property valuation methods have often neglected these environmental factors.
The partnership between PropTrack and Ambient Maps addresses this oversight by integrating detailed noise modeling data into the property valuation process, offering a more nuanced assessment of property values.
The integration of Ambient Maps’ noise data into PropTrack’s AVM revealed that properties exposed to higher noise levels generally fetch lower prices.
For example, road traffic noise can reduce property values by approximately 6% for every 10 dB(A) increase in noise, with variations depending on proximity to the noise source.
Similarly, rail and tram noise can decrease property values by about 4% for every 10 dB(A) increase, factoring in the proximity benefits to stations.
Aircraft noise showed a more substantial impact, with values dropping by 6% to 9% for each 10 dB(A) increase, equating to a 12% to 18% decrease for properties directly under flight paths.
This study utilised advanced AI methodologies to provide a deeper and more accurate analysis than previous research, offering invaluable insights for the real estate sector.
This research equips buyers with critical information about potential noise exposure, aiding them in making informed purchasing decisions. Investors gain a better understanding of the risks and potential returns from properties affected by noise.
Insights from this study can inform urban planning and development, encouraging the design of quieter, more desirable living spaces that enhance community well-being and property values.
Real estate agents benefit from a deeper understanding of how noise impacts property values, improving their market appraisals and client advice.
Looking ahead, PropTrack and Ambient Maps plan to continue researching environmental impacts on property values, including factors like air quality and green spaces.
Their commitment to integrating comprehensive environmental assessments into property valuation models signals a significant advancement in real estate analytics, emphasising sustainability and informed investment.
Their pioneering research not only highlights the importance of considering noise data in property evaluations but also sets the stage for more holistic approaches to understanding real estate dynamics in the face of evolving environmental challenges.
