Residential Real Estate Purchase Decisions in Australia: Is it More Than Location?

Thanakon Ratchatakulpat (), Peter Miller () and Teresa Marchant ()
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Thanakon Ratchatakulpat: TCC Capital Land Limited
Peter Miller: Southern Cross University
Teresa Marchant: Southern Cross University

International Real Estate Review, 2009, vol. 12, issue 3, 273-294

Abstract: This study investigates the factors that prospective buyers consider when purchasing residential property in Queensland, Australia. A drop-off survey is used, with 376 property buyers and a response rate of 62.7 percent. Affordability, maintenance and interior design, and a good neighbourhood are considered as most important. Of least importance are the affluence and quality of the area, water, views and roads, and features, such as a pool or air-conditioning. Therefore, location is important in the sense of neighbourhood and community, rather than prestige. Affordability should receive more attention in the literature and real estate marketing. Different market segments consider a number of factors when purchasing residential property. Since the factors vary according to the purpose (live in or investment) and the property type (house or unit), these variables provide a basis for identifying market segments. Agents can use the findings to better understand buyers. Researchers can further analyse buyer considerations and property characteristics to condense a large number of factors into a small number of coherent dimensions. The study may be limited by its focus on a geographical section of the Australian real estate market and some difficulties in identifying and operationalising property characteristics.

Keywords: Purchase; Investment; Australia; Residential; Buyer preferences (search for similar items in EconPapers)
JEL-codes: L85 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (3)

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