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


  • Thanakon Ratchatakulpat

    () (TCC Capital Land Limited)

  • Peter Miller

    () (Southern Cross University)

  • Teresa Marchant

    () (Southern Cross University)


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.

Suggested Citation

  • Thanakon Ratchatakulpat & Peter Miller & Teresa Marchant, 2009. "Residential Real Estate Purchase Decisions in Australia: Is it More Than Location?," International Real Estate Review, Asian Real Estate Society, vol. 12(3), pages 273-294.
  • Handle: RePEc:ire:issued:v:12:n:03:2009:p:273-294

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    References listed on IDEAS

    1. Abelson, Peter W., 1979. "Property prices and the value of amenities," Journal of Environmental Economics and Management, Elsevier, vol. 6(1), pages 11-28, March.
    2. Elizabeth Hemphill, 2007. "Factors Affecting Real Estate Broker Selection: What Really Counts?," International Real Estate Review, Asian Real Estate Society, vol. 10(1), pages 1-25.
    3. Webster, Cynthia, 1997. "Effects of researcher presence and appeal on response quality in hand-delivered, self-administered surveys," Journal of Business Research, Elsevier, vol. 38(2), pages 105-114, February.
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    More about this item


    Purchase; Investment; Australia; Residential; Buyer preferences;

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services


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