Buyers can save thousands of dollars by buying into a noisy area, according to a world-first report quantifying the impact of transport noise on property values.
The report by PropTrack and Ambient Maps found that properties exposed to higher noise levels, such as those near busy highways, train lines or airports, can be significantly cheaper.
Noise from traffic, trains and aeroplanes were all associated with lower home values, but the discount varied significantly based on the type of noise, and the volume.
By the same token, homes in with lower noise levels were more valuable, indicating buyers are willing to pay a premium for a quiet home.
Aircraft noise was found to have the largest influence on property values, with homes on average 6-9% cheaper for every 10 decibel increase in noise.
Given that properties under a flight path can experience noise levels that are 20 decibels higher than those outside a flight path, this means a home under a flight path could be 12-18% cheaper than an equivalent property not affected by aircraft noise.
Typical aircraft noise ranges from 65 to 95 decibels, according to Airservices Australia. By comparison, the noise from a conversation in a busy office is 60 decibels, while a hairdryer is 90 decibels.
Aircraft noise can vary significantly based on the altitude of the plane and whether it is landing or taking off. Picture: Getty
Traffic noise had the next biggest impact on home values, according to the PropTrack-Ambient report, with a 6% decrease associated with every 10 decibel increase in road noise.
Rail noise was associated with a 4% decrease in property values, the report found, even after accounting for the benefits of living near a train line, such as increased convenience and connectivity.
Noise from freight trains had a larger negative impact than other heavy rail or trams due to higher noise levels from freight trains and no added benefit of living near freight rail lines.
The report examined estimated property values for 3.7 million dwellings in metropolitan and regional Victoria using the PropTrack automated valuation model (AVM).
Noise from freight trains decreases property values more than noise from passenger trains. Picture: Getty
In a world-first approach, the study integrated noise modelling from Ambient Maps, which calculated noise levels for every dwelling in the nation, with the PropTrack AVM to determine the extent of the influence of noise on property values.
Report author and PropTrack executive manager of data science and analytics Kevin Ward said the results from a large sample of data across a diverse range of property types, suburbs and demographics suggested the impacts of noise on values would apply to the rest of the country.
Co-author and Ambient Maps director Ben Hinze said the noise models combined terrain and building data with traffic, train and aircraft movements to determine noise levels for every facade and level of every dwelling.
Can transport noise help buyers get into the market?
While the research shows that transport noise can negatively affect property values, lower prices can potentially allow buyers to purchase noise-affected properties for less.
"The report highlights the need for consumers to consider noise levels and their impacts when they purchase a home, and that quieter homes may attract a premium," Mr Ward said.
"For individuals entering the market, properties affected by noise might seem attractive because they present a more affordable entry point."
"Quieter homes are on average more expensive and may be out of reach of first-home buyers, although they may be an achievable next home upgrade when moving up the property ladder."
Living near public transport has benefits, but property values can be affected if homes experience high noise levels as a result. Picture: Getty
Mr Hinze said the data showed buyers were willing to pay more to live in quieter areas, particularly when it came to night time noise levels.
“It’s not just a penalty for high noise, it's a financial benefit of having those areas of quiet,” he said.
Proximity to the noise source mattered, Mr Hinze said, because homeowners can derive a benefit from roads and public transport without needing to be exposed to high noise levels.
“The sweet spot is where you are near the tram, but just a little bit away from it, so you’re getting the benefit of amenity but not the noise,” he said.
Aircraft noise has a greater impact on property values than noise from traffic or trains. Picture: Getty
Real estate agent and NGFarah partner Nathan Lang, who works across several suburbs adjacent to Sydney Airport such as Mascot, Eastlakes and Botany, said some buyers were willing to overlook aircraft noise if it meant they could purchase a house close to the city and eastern suburbs, while others completely ruled out homes under flight paths.
Mr Lang said in his experience, noise had a bigger influence on property prices for higher valued properties.
“Buyers with bigger budgets have got less that they have to compromise on,” he said.
However, he said strong market conditions could mean the difference between prices for noise-affected properties and those in quieter areas can shrink.
“The gap between properties on a busier street and a quiet street is a lot closer in a hotter market where buyers have more urgency and less options,” he said.
Mr Lang said aircraft noise was something that homeowners who were renovating or building needed to keep in mind.
“The advice I give to anybody who owns a house under the flight path is to be conscious of overcapitalising, and understand that as you get to the upper end of any market, buyers do become picky,” he said.
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Buyer’s agent Julie DeBondt-Barker of Property Home Base said buyers who didn't want to put up with noise may look to compromise on the cosmetic state of the property rather than noise levels, because making improvements could result in a higher resale value.
“If they can find an ugly duckling that they’re happy to live in for a year or two, give it a coat of paint or put in new carpet, they will buy much better,” she said.
Noise has impacts beyond property values
While transport noise can make homes more affordable, it can also negatively affect health and learning outcomes.
“Research by the World Health Organization shows that noise is the second largest environmental problem affecting health after air pollution,” the PropTrack-Ambient report stated.
“Chronic exposure is linked to cardiovascular disease, cognitive impairment, and sleep disturbance.”
Noise from traffic had a greater impact on home values than train noise, but was less significant than the effect of than aircraft noise. Picture: Getty
Children living or attending school in areas affected by transport noise tend to score lower on reading comprehension and face more behavioural challenges, according to a 2024 study by the European Environment Agency.
That study suggested the negative effects of transport noise can be minimised by soundproofing windows and doors and locating children’s bedrooms further from areas affected by noise, and incorporating landscaping that creates a sound barrier.
Noisier rental properties are much more likely to change hands frequently, according to a 2019 Ambient-State Machine report that showed properties with internal noise levels above World Health Organisation guidelines had a 69% higher rental turnover.
New infrastructure that improves connectivity such as motorways or train lines can boost home values, but the added noise can have a negative impact. Picture: Getty
The PropTrack-Ambient report also noted that new infrastructure projects, which can improve amenity for nearby properties, could be a double-edged sword, given the adverse health outcomes of noise pollution.
“This research indicates that property values may decline in response to noise levels from increased traffic flows from new infrastructure such as highways, railway lines, or airports, which can decrease the desirability of nearby properties,” the report stated.
“As urban densification increases, there is a greater need to understand the impact of noise levels on both existing and new supply of homes near transport corridors.”
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