ASSESSING THE IMPACT OF CRIME ON RESIDENTIAL PROPERTY MARKETS

Chris Eves

AfRES from African Real Estate Society (AfRES)

Abstract: PURPOSE: The aim of this research is to determine if a range of crimes in a suburb have an impact on the residential property sectors in that particular suburb. With the increasing media coverage of crime in specific locations, this knowledge of crime in Brisbane Australia is more available to potential residential property buyersDESIGN / METHODS FOLLOWED/ APPROACH: This research is based on the analysis of the crime statistics for 48 suburbs in Brisbane across a range of major crime activities and compares the level of crime to property median prices, sales volume and in a range of suburbs the volume of sale and lease listings.FINDINGS: The results of the research show a significant variation in the response of buyers in residential property markets based on the type of crime and the socio-economic status of the suburb. In a range of suburbs, value factors other than crime are the major drivers of the market.RESEARCH LIMITATIONS / IMPLICATIONS: The study provides an insight into consumer behaviour in a major city and the response of residential property buyers to an increasing level and awareness of crime statistics in the suburbs they are considering to buy.PRACTICAL IMPLICATIONS: The implications of this research are that with a greater level of awareness of factors that could be a disadvantage to some potential buyers are not always reflected across a full residential market. Valuers, property financiers and the public need to be aware of the type of crime and locations that have a direct impact on property prices and saleabilityORIGINALITY / VALUE OF WORK: These results expand on the current knowledge of value drivers in major residential property markets.

Keywords: Crime statistics; market analysis; residential property prices (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2014-09-01
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