Why Internet Connectivity Affects House Pricing (and why you should care)

  • Posted 04 Aug

Why Internet Connectivity Affects House Pricing (and why you should care)

Access to reliable, high quality internet is important for people who work at home, families with children doing homework, and anyone who wants to video chat with family, watch streaming movies, or download digital purchases.

Since the Internet has become indispensable, the quality of a property’s broadband connection has begun to impact home prices in technologically developed markets around the world.

In a survey conducted in the UK a few years ago, buyers ranked fast internet speeds as even more important than off street parking and amenities such as nearby shopping when considering where to purchase a home.

In that sort of market, a slow connection can lower a home’s purchasing price by as much as 20 per cent.

And in the United States, a fast fibre optic connection can add three to five per cent to a home’s overall value. This can add up to thousands of dollars to the purchase price, but home buyers are willing to pay for something they see as a boost to their quality of life.

Impacts to Australian markets

But what about local market values? In today’s strong real estate market, Australian property prices don’t seem to be much impacted by Internet availability or connectivity speeds. However, that could change in the future.

Australian real estate experts say it’s still too early to tell what effect the National Broadband Network (NBN) will have on home sales and pricing. Still, overseas trends definitely point to the extra value that having high quality internet adds to a home, so smart investors will want to keep this in mind when deciding where to buy.

Buyers should pay attention to future plans, such as where the nodes will be located in the new fibre-to-node cabling plan.

Cities vs. outlying areas

When purchasing property in major cities, most people take it for granted that Internet speeds will be sufficient for work and play. But buying a home in rural and regional areas can be a very different experience.

Officials predict that fast, affordable broadband will fuel economic growth across the country, bringing improvements to outlying economies and local communities. But while areas located outside of dense city centres are waiting to see the positive effects of the NBN, connections can be very slow in the meantime, making it frustrating to try to work or stream entertainment.

For now, keep Internet speeds in mind when researching your next home purchase. Internet access is becoming as important as good schools and public transport, a tool that everyone relies upon for many aspects of daily life.


Are you researching home loans or considering property investing? If so, contact Australian Credit and Finance as part of your decision making process. We can help you find the loan that’s right for your situation and get you a great rate too.

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