Property prices surge near tracks

Properties located within walking distance of a train station are experiencing an upswing in price, new data from PRDnationwide has found.

According to latest research by PRDnationwide, Sydney properties that are located near a railway station have jumped by 12.1 per cent in the 12 months to December 2009.

The median sale price in those suburbs has increased significantly from $651,000 to $730,000.

Compared with Sydney suburbs not serviced by trains, house prices have only risen by 8.3 per cent (3.8 per cent less than suburbs with a train station). The median sale price in those suburbs has increased from $840,000 to $910,000.

PRDnationwide managing director Jim Midgley said ‘black spot suburbs', that is, non-railway adjacent properties, have registered a small softening of 0.3 per cent over the last five years, indicating a higher demand for dwellings located in suburbs with direct access to a train station.

"Population growth continues in Sydney and this has prompted a high demand for places located near public transport facilities as the capacity of roads to cater for the influx of residents, particularly during peak traffic times deteriorates," Mr Midgley said.