Homebuyers and Location – Why Location Matters

The age-old saying of ‘location, location, location’ is just as important as ever in real estate, but it is evolving. Once, it was just about buying in a popular school zone or having easy access to essential services, but buyers today are looking for something more when searching for the right address. It is no longer just the suburb, street or position. House hunters want to find a property within their budget that also reflects their interests, values and overall well-being.  

Let’s look at why location can sway decisions when it comes to finding a home. 

Why is location so important? 

Unlike a dated kitchen or bad wallpaper, one thing buyers can’t change about a property is its address making location one of the key factors when buying a home. 

While affordability will dictate where people can purchase, good neighbourhoods tend to have low crime rates and convenient access to shopping, schools, transport links, and medical facilities.

LJ Hooker’s Head of Research, Mathew Tiller, said it is important to remember that everyone has different priorities when it comes to finding the perfect location. Some people want to live in the heart of the city, while others would prefer to reside in the middle of nowhere. 

“Young families tend to want to be close to schools with good transport links to employment hubs and also close to parks where their kids can run around,” Mr Tiller said.

“Older downsizers and retirees will be looking to be close to health services as well as restaurants and entertainment. Investors might be targeting students and an inner-city lifestyle where there is higher density – so what makes the right location can depend on who is buying.”

What are buyers looking for in a location?

The Domain End of Year Wrap 2024 revealed the suburbs with the highest views per listing, showing a high level of demand. In Sydney, the inner-west suburb of Stanmore topped the list, believed to be due to its leafy wider streets and good-sized backyards in comparison to neighbouring areas. 

Albert Park proved popular for house hunters in Melbourne, while downsizers are believed to be behind a surge of demand for Brisbane City. 

Other popular suburbs included Arana in Canberra, Glenelg South in Adelaide, Gidgegannup in Perth and Battery Point in Hobart. 

While most homebuyers hope for future value growth, it is not always what drives decisions when purchasing property.

A residence on a busy street may not look like the ideal location, but for someone looking to live in a particular school catchment or close to public transport – it may be the right address.

“Sometimes there are other things more important than capital growth that make a property’s location more appealing,” Mr Tiller said.

“It might be that they want to live in a property next door to their parents or a first homebuyer looking to get their foot into the market.” 

What is a premium location for real estate? 

A water view is coveted by buyers, closely followed by properties overlooking a golf course. 

The high side of the street has also been considered appealing because it is less likely to present drainage issues and may also offer a district outlook. 

Wide frontage is seen as desirable as it adds to street appeal. Buyers will also be keen for side access, particularly if they are looking to add a pool in the future.

Housing affordability has seen an increasing demand for granny flats. So the ability to add one in the future may also increase the appeal of a location.

How do you know if an area is right for you when purchasing a home?

When searching for a new home to buy or rent, it’s essential to find a place that meets your needs and feels like home. Equally important, however, is choosing the right neighbourhood that makes you feel connected. 

Start by visiting the area in person – explore local shops, stroll through parklands and check out any community spaces. Grab a coffee at a nearby café and get a sense of the vibe of the area.  

The next stop should be talking to a LJ Hooker agent working in your target area.  They will be able to provide insight into a particular area and whether it matches your goals. This includes recent sales, demographics, popular schools, local shopping precincts, transport routes, commute times and accessibility. Importantly, they will be able to take you through the buying process, from finding the right home to making an offer.

Steven Khawam from LJ Hooker Granville, Guildford & Merrylands said agents can provide insight into other suburbs that a purchaser may not have considered. 

“It is not unusual for people to attend an open inspection for a property that is out of their budget, but we can help them find something that might be more in their price range,” he said. 

“Often it is about making a compromise and finding a property where there is the potential to add value. You can’t always jump into where you want to be, but it is about having a strategy to get there.”

What can be done to increase the appeal of location? 

According to realestate.com.au, the top keyword searched by homebuyers is ‘swimming pool’, followed by ‘garage’ and ‘outdoor area’. Other sought-after features include air-conditioning and ensuite bathrooms. Such inclusions could sway a buyer to think beyond location. 

Principal of LJ Hooker Bella Vista, Leanne Nehme said there is plenty that can be done to make a location more appealing. This doesn’t mean rushing in and installing a swimming pool as some buyers don’t want to be fussed with the upkeep. Explore some cheaper options such as sprucing up a courtyard, relaying the driveway or simply adding landscaping and a new letterbox to increase its street appeal. 

“If you back onto a busy road, you could put hedging around the fence or create a sanctuary in the backyard,” Ms Nehme said. 

“I’ve seen huge transformations in properties that I have sold that once didn’t have much appeal. It is about enhancing the space you have and sometimes that just takes adding greenery and some simple updates inside.” 

DISCLAIMER - The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.