Does internet connectivity affect home prices?

By July 29, 2015Selling

Just like access to good transport, schools or a great aspect, potential purchasers also see reliable internet access and connection as one of life’s essential pieces of infrastructure. So it’s not surprising that you can add this to the list of things that affect house prices.

Not only seen as a tool for work communication, it’s an essential recreational and life tool. We watch TV through the internet, stream movies and music, read or watch the news, speak in real-time with friends and relatives overseas, book holidays, upload photos, shop, update our phone software and much more. So good internet connectivity is fast becoming an essential piece of infrastructure.

While the connection between internet speeds and property prices is well documented overseas, it’s seems we’re yet to see the same kind of clear cut impact of internet on property prices in Australia. A poll undertaken in the UK in 2012 (which is almost ancient history in tech terms) showed that homebuyers there rank a fast broadband connection higher than off-street parking and local amenities when considering a new property. UK property experts say that properties with slow broadband speed can be a deal breaker in house sales. It’s no different in the U.S. where a recent study found that the fastest type of high speed internet, fiber-optic connections, can add as much as $5,437 to the price of a $175,000 USD home.

Fast, reliable and affordable broadband internet has the potential to fuel economic growth of all kinds – not just property prices. It can also drive improvements to local communities and economies, business and bring new opportunities, which is why the Government saw fit to invest in the NBN to start with.

But the jury is still out on whether the NBN has had, or will have, a tangible impact on Australian property prices. Experts say it’s too early to tell, and the change to fibre-to-the-node from the original fibre-to-the-premises plans will also likely have an impact.

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As internet connectivity and our reliance on broadband becomes only more essential to, and entrenched within, our day to day life, we can only wait and see what happens to the desirability of properties with super fast, or super poor, connectivity.

Information courtesy of Emma Sorensen, writer for realestate.com.au

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