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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. 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, Global Social Science Institute, 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.
    4. repec:bla:ausecr:v:38:y:2005:i:3:p:265-281 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. 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.
    2. 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.
    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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