A new study has determined which crimes most adversely affect Brisbane property values.
New research from Queensland University of Technology has shown that the wealth of your suburb makes a difference to how crime affects property prices.
QUT Professor Chris Eves of QUT used property data and Queensland Police Service statistics to determine how crime affects property prices.
He spent 10 years analysing the crime rates and property value of 30 Brisbane suburbs between 2003 and 2013.
He found that home prices in high-end suburbs (such as Ascot, Bulimba, Chelmer, Clayfield, Hamilton, New Farm, Paddington, Spring Hill, St Lucia and Toowong), as well as low-end suburbs (such as Alexandra Hills, Bracken Ridge, Calamvale, Cleveland, Joyner, Inala, Kingston, Morayfield, Redbank Plains and Wynnum), were reduced when crimes against the person such as serious assaults and murders increased.
However, house prices in mid-range suburbs (such as Ashgrove, Carindale, Chapel Hill, Grange, Greenslopes, Mount Gravatt, North Lakes, Sandgate, Sunnybank Hills and West End) were affected differently, with property crimes such as theft and unlawful entry having a greater impact on prices.
“The analysis showed a link between changes in crime rates and house prices, especially in low and higher value residential property markets, with the greatest impact in the lower value areas,” Professor Eves said.
“Crime rates and the type of crime vary according to the location of the suburb. Crime is higher in the outer low-value suburbs and the CBD fringe suburbs where personal crimes such as assault, robbery and drug offences are higher.
“Personal crime does not have the same impact in the middle-value suburbs of Brisbane, where property crimes appear to have a greater effect on prices.
“In the inner-city’s high-value and middle-value suburbs, however, property damage and unlawful entry are of greater concern.”
Professor Eves was motivated to study the effect crime has on property values because he felt it had been neglected while other studies focussed on the impact of things like schools, transport, views, air pollution, and aircraft and vehicle noise.
“Research on the impact of crime on property markets has been ongoing but not as extensive as that on other property attributes.
“However, such research is likely to increase because social media, 24-hour media coverage of news has brought a general increase in the awareness of reporting and data associated with personal and property crime in particular locations.”Queensland Police Service set up a website in 2012 that identifies total reported crime, crime types and details of whether they were solved at a general street location level, with the data able to be aggregated on a suburb and police region basis.”
The next stage of Professor Eves’ research will examine specific types of offences and the level of impact they have on property prices.