Property values in pricey Canberra suburbs fell by 5% amid the 2017 announcement of new public housing, new research has shown.
Prices in Canberra suburbs dropped by 5%, with housing values in wealthier suburbs falling by up to 7.5%, according to Impact of Public Housing on Property Prices: Evidence from the Australian Capital Territory, co-authored by Anastasia Klimova from the University of Technology Sydney.
Values in middle and lower-income suburbs also dropped by 2 to 3%, the research said.
“We show the property prices are affected in suburbs selected for new public housing complexes due to a purely information effect. We also show that the effect is higher for high-priced suburbs and lower for medium and low-quality suburbs,” Klimova said.
The negative image of public housing affected property prices, with many residents voicing their opposition to it in the media, according to Klimova.
“The announcement made some people unhappy because they were fearful (that) it would affect their property prices and would impact the area in other (negative) ways,” Klimova said.
Mawson residents were angry about the lack of consultation by the government, inadequate car parking as part of the plans, and the effects on property prices where people were paying mortgages, according to media reports.
The findings came as the ACT government sells off several inner-city public housing developments, pushing new builds for those in need further out into the suburbs.