Agents tip price growth near Cranbourne-Pakenham line level crossings after grade separation

Some real estate agents expect house prices to rise when level crossings in Melbourne’s s

Some real estate agents expect house prices to rise when level crossings in Melbourne’s south go underground.

PROPERTY prices in the streets near Ormond, Bentleigh and McKinnon stations and near level crossings along the Cranbourne-Pakenham line are tipped to rise when grade separation works are complete.

Real estate agents agree the Andrews Government’s promised removal of seven dangerous, congested level crossings in Glen Eira will boost the surrounding suburbs’ livability and desirability.

Most expect price growth in the streets immediately around the level crossings and closest to the peak hour bottlenecks, while a few are unsure if it will make a noticeable price difference.

All agree it is hard to put a figure on how much prices could rise.

Buxton Bentleigh director Craig Williamson said premium properties immediately around level crossings could rise by up to 5 per cent when the railway lines were put underground.

That, he said, could add $100,000 to a $2 million property.“This type of thing could add 3 per cent on top of annual price growth and 5 per cent in immediate areas,” he said.

“Holistically, the entire area becomes more appealing. It’s going to add to the desirability and that demand intensifies competition and that drives prices.”

Josh Hommelhoff, from Ray White Carnegie, said promised grade separation in Carnegie and Murrumbeena would push prices up in those suburbs.

“I’ve always said that once that happens values can only go one way and that’s up,” he said.”

He said level crossings impacted on property prices there.

“If you are buying north of the railway line in Carnegie or Murrumbeena it generally means slightly higher prices,” he said.

Kim Easterbrook, managing director of Elite Property Advisory in Brighton, said she expected livability and “sellability” benefits.

“I don’t believe there will be a direct impact on property prices in the surrounding streets and suburbs due to the removal of the level crossings,” she said.

“What I would say though that it will certainly help with the livability of the suburb, meaning that it should unlock some of the traffic congestion around the crossings and therefore people will enjoy living in the immediate area more so.”

“What it could do is assist with the sellability of the properties in the immediate proximity of the boom gates.”

Woodards Bentleigh director John Pollard said it would be “fantastic” from a local point of view but doubted if it would impact on prices.

“I don’t believe there’s a change in dollar value there,” he said.

Grade separation at Ormond, Bentleigh and McKinnon and on the Cranbourne-Pakenham line is expected to be complete by 2018.