Train suburbs take off
Buyers are waking up to the convenience and price of living near rail, writes Mikaela Wilkes.
New Zealand punches above its weight in many areas, but we all know public transport is not one of them.
Our largest centres are congested and underserved by rail – unlike Sydney, New York, and London. In those cities, the trains make travel to any corner of the city accessible and speedy – even if dodgy black stuff does come out of your nose the next time you sneeze.
In New Zealand, train-side suburbs have always been relatively affordable because of their distance from the central city, lack of amenities, and the disturbance factor.
But with Government forecasters expecting big increases to house prices every year until 2025, finding the next Goldilocks suburb – far enough out of the city to afford but close enough to commute – will be a buying priority.
Young couples and families are being squeezed further out of the central suburbs to find affordable housing.
Buying into the infill areas near train stations in Auckland and Wellington may allow them to do so without adding hours to a commute.
In Christchurch, where there are no commuter trains and property supply is more plentiful, buyers could previously get better value for money buying near the noisy freight-carrying lines – but not in the current market.
Before the earthquakes, a house beside the tracks could be knocked down by 10 per cent of its value compared to a similar house two blocks away, according to Debi Pratt, Tall Poppy real estate agent for Merivale and Fendalton.
‘‘You had to discount the property to get it sold,’’ she said.
However, there are now far fewer trains, and in competitive buying situations buyers are prepared to forgive more.
Pratt recently sold a property on Mona Vale Ave, right on the railway, for well over $1 million dollars.
She had more than 100 groups through the open home and
12 offers by the end of the day.
She was surprised that only a couple of people inquired about the frequency of the freight trains, which run once or twice a day.
The tracks are visible from the windows ‘‘but the railway just didn’t even factor’’, she said.
‘‘You’ve often got good school zones by the tracks, which people want to get into regardless.’’
A research paper by Auckland Council’s chief economist Stan Martin found homes and apartments in Auckland within an easy walking distance – 500 metres or less – of a train station attracted a premium above similar properties further away.
Properties within a 260m walking distance of a train station on the eastern and southern lines were the most valuable, pricing at 19 per cent above similar properties further away.
Bindi Norwell, chief executive of the Real Estate Institute, said that while properties right on the railway line might have the downside of additional noise, for some the benefit of easy access to public transport and so an easier commute would outweigh the negatives.
‘‘Potential home improvements such as double or triple-glazing can help negate sound-pollution, making it a non-issue.
‘‘Generally, we see median house prices increase the closer you get to the city centre.
‘‘However, with the City Rail Link project due to be completed in late 2024, we expect that the outward spread from the Auckland City centre will continue as proximity to the city can be traded in for proximity to reliable transport lines.’’
The City Rail Link (CRL) will cut 10 or more minutes off travel times across the train network to the central city and double frequency on much of the network.
Median house prices in train-side suburbs such as Glenn Innes and Otahuhu are still a relatively affordable $785,000 and $797,000, respectively, according to the latest data from CoreLogic.
Homes within 500m of New Lynn station are typically worth $680,000 and just 34 minutes by train from the city along the western line.
Cheaper still is Manukau, officially on the eastern line but located in South Auckland, for $411,000.
CoreLogic senior property economist Kelvin Davidson said
there had been some solid value gains for homes in these ‘‘commuter areas’’ in the past 12 months.
‘‘But perhaps more importantly most are still considerably cheaper than the Auckland median value of $1m,’’ he said.
The same is true of station-side property in Wellington, which tends to be cheaper than the median price of the general area.
The median house price in Wellington city rose 22.5 per cent in
the past year, to stand at $980,000 and almost a third of the region’s homes now sell for more than $1 million.
Yet Porirua, for example, has a median price of $800,500 – more than $100k above the median of properties by the station.
While modern train engines are quieter than their predecessors, a large running train engine can create a deep, annoying rumbling as it runs
along a set of railroad tracks.
Likewise, the blaring of horns might turn into white noise for some buyers, but be a deal-breaker for others.
Railway suburb prices and commute times Auckland
■ Manukau, end of eastern line, 37 minutes commute time. Median price within a 500m radius of the train station: $411,000. Up $18,000 from one year ago.
■ Swanson, end of western line, 54 minutes. $991,000.
Up $121,000 from one year ago.
■ Avondale, western line, 31 minutes. $936,000.
Up $136,000 from one year ago.
■ Glen Eden, western line, 40 minutes. $816,000.
Up $101,000 from one year ago.
■ Papakura, end of southern line, 50 minutes. $681,000.
Up $92,000 from one year ago.
■ New Lynn, western line, 34 minutes. $680,000.
Up $92,000 from one year ago.
■ Glen Innes, eastern line, 13 minutes. $785,000.
Up $96,000 from one year ago.
■ Otahuhu, southern line, 25 minutes. $797,000.
Up $162,000 from one year ago.
Wellington
■ Crofton Downs, Johnsonville line, 8 minutes commute time. Median price within a 500m radius of the train station: $1.09m.
■ Johnsonville, Johnsonville line, 23 minutes. $768,000.
■ Ngaio, Johnsonville line, 10 minutes. $1.07m.
■ Petone, Hutt Valley line, 12 minutes. $900,000.
■ Tawa, Ka¯ piti line, 15 minutes. $821,000.
■ Porirua, Ka¯ piti line, 21 minutes. $644,000.
■ Upper Hutt, Hutt Valley line, 45 minutes. $661,000.
Sarah West, 30, rents an apartment that directly overlooks the Newmarket train station and commutes to her work as an insurance broker in the central business district.
While there is some noise from passing trains, she said, the biggest irritations come from the station itself.
‘‘When the station uses its intercom, I feel like the announcer is standing in my kitchen with a megaphone,’’ she said.
However, she would not choose to live anywhere without easy access to a station.
Peter Evans, Colliers head of residential project marketing said it seems young professionals are finally waking up to the appeal of rail.
‘‘Some astute buyers will lead and go early into the up-andcoming suburbs, as they have done in the likes of New Lynn and Onehunga. They will earn well when prices go up. Others will wait until the amenity is added,’’ he said.
Auckland Council’s chief economist Stan Martin hasn’t yet analysed how the 2020 house price boom will affect the affordability of Auckland railway neighbourhoods.
However, he is ‘‘reasonably confident’’ that living near a train station will be more desirable on the west side of the city once the CRL opens.
He said the CRL was likely to save 20 minutes of commute time each way into the city: ‘‘Forty minutes per work day is a massive savings to people, and I’d expect this to be reflected in the property prices.’’