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Listing a private car space can drive property prices up to $150,000, making it a key selling point in high-demand suburbs.
A study by furniture retailer Luxo Living found that private parking in residential areas has been driving up property prices, especially in high-traffic suburbs close to capital city CBDs or tourist hotspots.
The study analysed the properties sold over the last 24 months and compared the prices of similar properties with and without a private car park, finding that having a parking space can add six figures to the sale price of a property.
Across the nation, data showed that in the top 10 suburbs where private parking was the most coveted, having a car space could add between $149,000 and $156,000 to the property value.
In total, NSW accounted for five suburbs out of the top 10 list, dominating the market where home owners are ready to spend more for a dedicated parking spot.
In Newtown, in Sydney’s inner west, private parking spaces have been the most expensive across the country, adding an extra $156,000.
Luxo Living said that Newtown’s ranking on this list could be indicative of the area being home to young families, who have a greater need for extra parking space to support their busy family life.
Founder and CEO of Luxo Living, Winston Tu, said that what was once considered a standard feature of a home is now being treated as an additional upgrade and driving property prices higher.
“As suburban areas become denser, this study shows that dedicated parking is becoming more scarce for everyday people,” Tu said.
“Having a dedicated parking space has moved beyond a convenience and has become a luxury that only those who can afford to pay the extra cost can secure.”
Following Newtown, Sydney’s coastal suburbs of Collaroy and Coogee rounded out the nation’s top three, as private parking added an extra $155,000 and $154,000 to property prices, respectively.
Tu said that buyers in coastal suburbs like Coogee and Collaroy are paying a premium for a car space, driven by limited parking, which has been scarce due to high tourist and recreational traffic.
Queensland scored two suburbs on the ranking, with Highgate Hill and Newstead both seeing increased property value, adding over $150,000.
Luxo Living stated that the scarcity of parking in Brisbane’s inner city means that buyers are willing to spend extra to secure a dedicated car space.
Western Australia, the ACT and Victoria all have one suburb feature in the top 10.
At the other end of the spectrum, the Northern Territory experienced the smallest price increase for parking, with residents in Karama, north-east Darwin, paying only $38,650 extra for the convenience of their own space.
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