Impact of proposed Beaches Link on Northbridge property prices

Upside potential

Downside risks

Residential properties:

Before tunnel construction:
–  Fear of the Known Unknown can depress prices especially along proposed route and close to proposed stacks eg: anecdotal evidence suggests this is occurring in
Newtown/Camperdown where buyers are asking:
~  how close is too close?
~  how deep will it be?
~  where will the stacks be built?

During tunnel construction:
–  Theoretically possible physical risks could depress prices eg:
~  structure collapses during tunnelling
~  groundwater alterations
~  noise
~  storage of materials
~  vibration
~  pollution (air and groundwater)

After tunnel construction:
–  Downside risks tend to abate and prices rebound in transition to Known Known eg: thousands of properties trade along route of Eastern Distributor and close to actual stacks
with little buyer apprehension
–  Subterranean resumptions typically have little impact on prices

Caveats:
–  Before and during tunnel construction phases can span several years of the property cycle
–  Inner city buyers may have greater tolerances than some (not all) outer ring buyers

Commercial properties:
–  possible loss of passing custom to Northbridge Plaza
–  may restrict deep foundation/carpark future higher density development (up side potential for opponents of such development)

 

Future trends