An ocean aspect can increase a property’s value by more than half and significantly enhance its saleability, according to Newcastle property experts.

 

Speaking to the Newcastle New Projects Suite Sessions event on October 22, hosted by PRDnationwide Newcastle and Lake Macquarie, Herron Todd White Newcastle Director and certified practicing property valuer Leigh Mather said aspect and location were key features in assessing a home’s worth.

 

Mr Mather said an RP Data search of recent sales in the beachside suburb of Merewether showed a 56% price difference in homes with views, versus those without.

“In our search, the median price of homes without views was $914,000, and this rose to $1.63 million for those with an ocean aspect,” he said.

 

“Of course, you have to consider the amenity that comes with a view – being a stone’s throw to the beach rather than a few streets back will also add to a property’s worth.

 

“A view is just one of many property attributes buyers will consider.” Mr Mather also cited an academic study (by Benson, et al), which suggested a full ocean view could add 59%, a superior partial ocean view 31%, a good partial ocean view 29% and a poor partial ocean view 8%. But a poor aspect can have the opposite effect, says Mr Mather.

“A view of a railway or an industrial outlook may decrease a property’s worth, but again location factors in this equation,” he said. Bob Dupont, certified practicing valuer and CEO of Preston Rowe Paterson Newcastle, also presented at the event and said the value of a view was subjective.

 

“A view is considered a prestigious feature and generally speaking, properties with a view will achieve a higher sale price,” he said.

“For example, a top floor apartment can achieve around a 20% higher price than one on the bottom floor.

 

“But it comes down to the buyer – inevitably someone will value an aspect more than others whose considerations may lean more to a property’s other features.”

 

PRDnationwide Newcastle and Lake Macquarie Managing Director Mark Kentwell said views often enhanced a property’s saleability.

“A stunning aspect can be a major drawcard for prospective buyers,” he said.

 

“The real estate agent’s mantra is ‘location, location, location’ and views fall under this category – you can renovate a kitchen and knock down walls, but you can’t change your outlook.

“In that sense, views can considerably enhance a property’s appeal.”

The Suite Sessions event was part of a series of informative, free seminars held monthly by Newcastle New Projects, a division of PRDnationwide Newcastle and Lake Macquarie.