How electronic vehicles are shifting the housing market
Where do you charge your car if you don’t have a parking space?
Many home buyers will forego parking if they can buy in their ideal location. It is a trade-off buyers are willing to make... for now! It makes sense when your car relies on petrol which comes from a service station down the road.
Enter the electric vehicle…
The growth and uptake of electric vehicles (EVs) are about to change all of that. How will you charge your car at home if you rely solely on on-street parking? Who would want to buy a property without access to an EV charger?
Properties without parking will always sell for less than an identical property with parking (all else being equal). The value of parking in Sydney on average is about $70,000 - $100,000; although in suburbs like Potts Point where parking is few and far between expect to pay almost double this.
Will you own an EV in the next ten years?
The NSW Government has an EV Strategy which aims to have 52% of all new car sales as EVs by 2030. This is supported by the deliveries of EVs in Australia in Q1 of 2023 up 157% from the same period last year.
The shift is already happening as buyers who currently own an EV are ruled out of considering houses without parking, or apartment blocks who have no desire to install an EV. If you are a buyer who currently doesn't own a car, or owns a petrol car, then giving due consideration to this shift now is a way to future-proof yourself.
You may pay a little more for the privilege now to buy a property with parking, however, when you go to sell in 5, 10, or 15 years - the value of this parking space will have exponentially increased.
Can’t I just charge my car on the street?
Councils are cracking down on owners who try and run power from their property to the street. For obvious reasons, this creates concerning safety hazards. Councils are also slowly getting on board with communal charging stations. However, it will take a number of years until this becomes common practice.
What can you do
There are two ways I think buyers can approach the changing dynamic to find value:
Ensure your next property purchase will accommodate yourself, or future owners, with an EV
Buying in close proximity to a petrol station may no longer be a bad idea... Because it is unlikely to be a petrol station for much longer!
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