In Australia’s bustling suburbs, a new kind of luxury is driving up property prices – not a designer kitchen, a backyard pool, or even a waterfront view. It’s the humble parking space.
A new study reveals that homeowners are paying up to $156,000 more on average for properties with dedicated parking, turning garages and driveways into some of the most valuable real estate features in the market.
The research, conducted by Australian-owned furniture retailer Luxo Living, analysed property sales across the nation’s most populous suburbs over the past two years.
By comparing homes with and without dedicated parking spaces, the study uncovered the staggering premiums buyers are willing to pay for the convenience – and exclusivity – of private parking.
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Parking: The new property gold
Winston Tu, Founder and CEO of LuxoLiving.com.au, says the findings highlight a growing trend in suburban real estate.
“As suburban areas become denser, this study shows that dedicated parking is becoming more scarce for everyday people,” he says.
“The findings reflect that what was once considered a standard feature of a home is now being treated as an additional upgrade, driving up the price of property in an already competitive market.”
Carparking spaces have become the new luxury property item.
This scarcity has transformed parking from a practical necessity into a status symbol.
In suburbs where street parking is limited or fiercely contested, the value of a private parking space has soared, making it a must-have feature for many buyers.
The Suburbs Where Parking Costs the Most
The study identified five suburbs where the price premium for parking is particularly striking.
Newtown, NSW
At the top of the list, Newtown homeowners are paying an average of $155,868 more for properties with dedicated parking.
Known for its lively culture and proximity to Sydney’s CBD, Newtown’s narrow streets and limited parking make private spaces a prized commodity for families and professionals.
Collaroy, NSW
In this beachside suburb, properties with parking command an additional $155,858 on average. Collaroy’s stunning coastal views and bustling tourist activity come with a downside: scarce street parking, driving up demand for private spaces.
Coogee, NSW
Buyers in Coogee are paying an extra $154,941 for homes with parking. As one of Sydney’s most densely populated coastal suburbs, Coogee’s limited parking availability has turned garages and driveways into highly sought-after assets.
Highgate Hill, QLD
In Brisbane’s inner-city suburb of Highgate Hill, the parking premium reaches $153,639. With street parking often unreliable, private spaces offer the convenience and security that many homebuyers are willing to pay for. 5.
Cottesloe, WA
Rounding out the top five, Cottesloe properties with parking add $152,679 to the average sale price. The suburb’s popularity as a coastal destination means parking is at a premium, making private spaces a valuable feature for residents.
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Some families are willing to pay up to $156,000 more for a home if it means they can park one or more cars.
What this means for buyers and sellers
For buyers, the inclusion of a parking space can significantly impact affordability, particularly in high-demand suburbs.
For sellers, the findings underscore the importance of highlighting parking features when marketing properties, as they can add substantial value in competitive markets.
“As suburban areas become more crowded, parking is no longer just a convenience – it’s a lifestyle upgrade,” Tu said.
“The data reflects how Australians are willing to pay a premium for the peace of mind and practicality that private parking provides.”
With suburban density on the rise, the value of parking is unlikely to diminish.
For those navigating the property market, the question remains: is the convenience of a private parking space worth the extra cost, or could alternative solutions – like improved public transport or car-sharing – help ease the financial burden?
One thing is clear: in today’s real estate market, parking is no longer just a space – it’s a statement.
References
- ^ www.realestate.com.au (www.realestate.com.au)
- ^ www.realcommercial.com.au (www.realcommercial.com.au)
- ^ www.realestate.com.au (www.realestate.com.au)
- ^ www.realestate.com.au (www.realestate.com.au)