Silly street names offer bargain houses
Fancy calling Bogan or Thrush St home? If 'yes', you could be able to pick up a real bargain.
Buyers won't pay as much if they buy in a street with a 'silly' name, according to a group of Geelong students.
Streets such as Bogan St, Thrush St, Busty Rd, Beaver St and Belcher St were manually discovered and monitored by students in the Bradbury Club at Sacred Heart College.
The students partnered with Barry Plant, Docklands and the Australian Bureau of Statistics to investigate if property prices were cheaper in streets with these 'silly' names.
Property prices were found to be 20 per cent lower in streets with silly names compared to surrounding streets, from an analysis of 4588 sales with a combined value of $1.5 billion.
The report interestingly says the price difference was evident in metropolitan Melbourne but not so much in regional areas.
The study shows the effect is more pronounced in metropolitan areas, possibly due to the greater amount of choice buyers have in a large city and their ability to avoid a street name if they found it undesirable.
In contrast, people have less choice in regional areas and may have to settle for an address they would normally avoid.
In addition, students conducted a qualitative survey of 323 adults to gauge people's attitudes towards streets with silly names.
The survey showed just more than half of the respondents would be happy to live in a street with a silly name.
However, similar numbers thought property prices were likely to be cheaper in these streets, would be harder to sell and would be embarrassed by their address.
The majority of respondents said they would be prepared to live in a street with a silly name if it was 10 or 20 per cent cheaper.
To discover if silly streets were more affordable, for each street two nearby comparable streets with similar size, number of houses, etc, was identified using Google Maps.
Average sale prices of properties in each street was calculated by combining the sale prices of all properties over the past 47 years and dividing by the number of sales.
It was also discovered that younger people looking for smaller dwellings indicated they would be comfortable living in these streets, enabling them to enter the property market for the first time.