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

Author

Listed:
  • Thanakon Ratchatakulpat

    (TCC Capital Land Limited)

  • Peter Miller

    (Southern Cross University)

  • Teresa Marchant

    (Southern Cross University)

Abstract

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, Global Social Science Institute, 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

    as
    1. Peter Abelson & Demi Chung, 2005. "The Real Story of Housing Prices in Australia from 1970 to 2003," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 38(3), pages 265-281, September.
    2. 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.
    3. Elizabeth Hemphill, 2007. "Factors Affecting Real Estate Broker Selection: What Really Counts?," International Real Estate Review, Global Social Science Institute, vol. 10(1), pages 1-25.
    4. 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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    Cited by:

    1. Njo Anastasia, 2015. "The Rational and Irrational Factors Underlying Property Buying Behavior," Journal of Economics and Behavioral Studies, AMH International, vol. 7(2), pages 183-191.
    2. Abdul Hamid Mar Iman & Fu Yek Pieng & Christopher Gan, 2012. "A Conjoint Analysis of Buyers' Preferences for Residential Property," International Real Estate Review, Global Social Science Institute, vol. 15(1), pages 73-105.
    3. , Le Thanh Tung, 2014. "Factors affecting on the Apartment purchase decision of officers in Small and Medium - sized enterprises in Ho Chi Minh City," OSF Preprints wfcbt, Center for Open Science.

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    More about this item

    Keywords

    Purchase; Investment; Australia; Residential; Buyer preferences;
    All these keywords.

    JEL classification:

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

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