Location, Location, Location

We have always known that one of the major drivers of value in real estate is location. Generally in the past location has been defined in positive terms – the better side of the street, or a better suburb, or closer to amenities.
 
But is a big negative factor now one of the most important in defining location quality?
Is congestion starting to play a major part in defining value?
 
In the industrial market there has traditionally been a value hierarchy defined by suburb location, perhaps exemplified by the statement: "if this building was in East Tamaki it would be worth x % more“
 
Perhaps we have now received a turning point in the Auckland market where congestion will drive value. Over the past few years we have seen costs driven up for most business due to worsening congestion on the roads. It is frustrating for all business owners to be paying staff to be sitting in traffic. And it is equally as frustrating to have to make strategic business decisions based on travel times due to congestion.

Unfortunately that is the reality of the Auckland market now, and I sense that it will become an increasingly important factor in property decisions, which will therefore impact on the relative value of property.