Postcodes add more value to your property than street name: REIV

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Sep 18, 2017

Postcodes add more value to your property than street name: REIV

Apartments on the same street but in different postcodes can vary in price by more than $800,000 says Joseph Walton, president of the REIV.

Joseph Walton, president of the REIV.

New data from the REIV shows postcodes can add more to the value of your home than street names – up to $836,000 more, to be exact.

The REIV says apartments on Beach Road in the suburb of Hampton had a median price of $1,361,000 in the year to 30 June, while apartments on Beach Road in Black Rock had a median price of $718,000 for the same period, and apartments on Beach Road in Mentone had a median price of only $525,000.

Apartments on Chapel Street also varied from postcode to postcode. In South Yarra, apartments on Chapel Street had a median price of $772,000, but in St Kilda, apartments on Chapel Street only had a median price of $542,000 in the year to 30 June 2017.

Apartment in Prahran on Dandenong Road fetched $215,000 more than those on the same street in Malvern East.

Other streets that showed marked discrepancies between apartment values depending on postcode were Toorak Road, Whitehorse Road, and Burwood Road.

“Given there are quite a few Melbourne roads spanning multiple suburbs, a postcode is now often worth more to the value of a home than a street address," said REIV president, Joseph Walton.

Suburb rezoning can add hundreds of thousands of dollars to the value to a property overnight, said Walton - "particularly at the higher end of the market".

Walton said buyers should do their homework if they are looking to buy a house in a desirable street - they might be able to save a significant sum by considering a property outside the most sought after suburbs, he said.