60 Reasons to Protest: Reason #48 β Property Devaluations
In 2013 Brisbane Airport Corporation paid for a study into “the potential impact of aircraft noise on Brisbane residential property prices in response to community concerns about the impact of flight paths and aircraft noise on property value.” The study found that noise affected suburbs “are still showing higher average annual capital returns compared to other less well-located suburbs of Brisbane.”
Yet, this study is not painting the full picture. Why? Because the methodology is limited by only looking:
“at residential property markets on a suburb basis and this includes streets that are directly under flight paths and those streets that are adjoining and not impacted to the same extent.”
Source
So in essence, BAC says: All property prices are going up, so we’re all good. It does not distinguish between homes directly under flight paths versus those not affected in the same suburb. It simply looks at an entire suburb’s property price averages.
We have identified a more detailed study using hedonic price modelling conducted by property specialist firm JLL commissioned by the Australian Government for the 2016 Environmental Impact Statement of the Western Sydney Airport. For Brisbane (with just one runway at the time), JLL found a property devaluation of 10.67% due to aircraft noise (pp. 42-43). Considering the extraordinary debacle unfolding since the new airspace design was launched in 2020, we expect this figure to have gotten worse.
This represents a wealth transfer from ordinary Australians to a multi-national corporation. Are you happy to hand over 10% of your property’s value in order to subsidise BAC’s profits?
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