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New research has revealed that small businesses have the ability to boost the median house values.
According to The Economy of Shopping Small Report, commissioned by American Express, Australians are willing to pay on average an additional 4.4 per cent, or $30,486, for a home located near a local shopping village.
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“Many factors contribute to the price of the average home, but probably unknown to many, is exactly the extent small businesses play in boosting property prices,” Rose and Jones real estate agent Byron Rose said.
“Despite auction clearance rates slowing and interest rates at record lows, if you compared house prices from a community with the average number of small businesses (375) with one which had twice this amount, the estimate median house price in the latter would be 10 per cent higher.”
The report found that 62 per cent of respondents agreed small businesses improve the aesthetics of the surrounding area, while 60 per cent said they improve the standard of living.
Meanwhile, 71 per cent stated small businesses provide a unique product or service to the local community and 69 per cent said they increase local employment.
“Small business owners are willing to go above and beyond to meet our needs unlike any other business can and the benefits they deliver are far reaching, whether it’s greeting us with a smile or adding significant value to our house price, they are at the heart of our communities,” American Express Global Merchant Services senior vice present, Melanie Cochrane, said.
The research also found that renters share a similar mentality to home buyers with 20 per cent willing to pay extra to rent a home near a shopping village.
The findings revealed that women were more likely than men to want to live near a deli or convenience store (69 per cent vs 59 per cent), closer to schools and libraries (65 per cent vs 54 per cent) and cafes (57 per cent vs 50 per cent).
Bottle stores however were more important to men with 38 per cent agreeing it was a priority to live near one compared with 31 per cent of females.
[Related: SME funder offers 'compelling' broker proposition]
