Will the presence of a very fast broadband connection boost a home’s value in Australia?
While no studies have been carried out to date in Australia that we’re aware of; if overseas markets are anything to go by, then yes, it possibly will.
A study from earlier this year in the USA concluded adding Fibre To The Home (FTTH) bumps its value up 1.3 per cent, and if that connection is upgraded from 100Mb/s to 1Gb/s, it adds another 1.8 per cent.
In the UK, last year The Telegraph reported slow broadband speeds can see as much as 20 per cent wiped off the value of properties and can even be a dealbreaker for house sales. On some real estate sites in the UK, the presence or absence of fast broadband has become part of basic information on listings.
It makes sense.
Imagine two properties for sale, both similar in price and features – except one has very fast broadband and the other ADSL+ – it might be just enough to push potential buyers to the home with the faster connection.
The good news is very fast broadband doesn’t need to be an expensive home improvement – and you don’t necessarily need to be in a Fibre To The Node (FTTN) NBN area in order to access it. Companies such as Lightning Broadband are rolling out services with speeds of up to 1,000 Mbps across the country; reaching homes and businesses that may never receive NBN access.
Australia is still lacking compared to some other countries when it comes to connection speeds. Online applications are becoming more bandwidth intensive. An increasing number of families have multiple devices connecting to the internet and a growing number of people are working either part-time or full-time from home.
Very fast broadband has already left the realm of the hard-core gamers and ubergeeks and is entering the mainstream. It’s becoming a critical service; much like electricity, water and gas – and one it seems that will be an added promotional tool for those selling their homes or seeking to rent them out.