How much does it really cost to live near Sturt Street?
BY PETER MURPHY FROM PRP BALLARAT
Walking through the residential streets of Ballarat Central provides a refreshing experience.
THERE are picturesque tree lined streets, historic bluestone stormwater channels and of course, many beautiful period houses. These are characteristics you can’t recreate, and you won’t see in any new estates.
Ballarat Central provides many different housing styles and the quality of housing can vary significantly – from unrenovated early 20th Century cottages to re-built architecturally designed accommodation, with the later generally retaining the original façade (in keeping with heritage requirements).
However, one thing does remain consistent – the closer you get to Sturt Street, the more expensive the house becomes. So, how much does it really cost to live close to Sturt Street?
To find some answers, we have taken a look at the median house price for each of the major blocks extending south from Sturt Street. These have been grouped into the ‘0’s block’, ‘100’s block’, ‘200’s block”, etc. in keeping with the postal addresses of the southbound streets. We have also extended our investigation area to include the 500’s, 600’s and 700’s blocks, which are located in the suburb of Redan. In real terms, each block represents a further 220 metres walk from Sturt Street.
To provide a more accurate snapshot, we have utilised sales data from 2016 to present. Due to the lower volume of sales and the geographic similarity, we have also combined the sales within the 600’s & 700’s blocks – both being south of La Trobe Street.
In viewing the data, it is clear that there is a strong correlation of proximity to Sturt Street and the value of a house – the further south you walk, the more affordable the house becomes. The graph show on the previous page sets out the median house price of each block – we have utilised both a longer-term trend (all sales from 2016 to current), as well as the more recent trend (sales from 2018 and 2019 only):
Some key trends from the graph include:
- The longer term and more recent trend lines provide the same general trajectory, although outline that some of the blocks are at different stages of price growth.
- The more recent trend (‘2018/19 Only’) indicates there is a more pronounced price variation between each block – which is a typical sign of an accelerating market.
- The longer-term trend (‘2016 to current’) indicates the best price to location value was in the 200’s Block, although the more recent data indicates the horse may have now bolted on this block;
- The more recent trend indicates the best price to location value shifted to the 300’s block over the last two years;
- Both the longer term and more recent trends indicate that the 500’s block has achieved slightly higher median house prices than the 400’s block – which is likely due to larger allotment sizes.
Another notable feature of the data is the strong overall growth in Ballarat Central. Whilst it is generally accepted that there has been growth in Ballarat Central over the past five years, the actual extent of growth within our investigation area is quite surprising.
The sales data indicates the median house price of each block over the last five years, has grown as follows: 0’s block – 64 per cent, 100’s – 46 per cent, 200’s – 51 per cent, 300’s – 29 per cent, 400’s – 32 per cent, 500’s -35 per cent, 600 and 700’s – 41 per cent.
In summary, the sales data provides a clear picture, that for each block south from Sturt Street, the housing becomes more affordable. Therefore, each additional 220m walk home may provide not only a benefit to the waistline, but also the bank balance.