The “Aldi effect” transforms property market

By YIP | 23 Sep 2016
Australian property owners who have homes or investments near German budget supermarket Aldi could have very valuable homes on their hands.

According to a study conducted by mover and conveyance service My Home Move, the opening of a new Aldi branch has almost always sparked an incredible surge in the prices of nearby properties in the UK.

In fact, the value of Chipping Norton, the previous home of ex-British Prime Minister David Cameron, soared by 133% after Aldi set up shop.

“Our own research has shown that a third of home movers chose their new property based on its proximity to shops and local amenities – and as such we are not surprised that the recent popularity of Aldi, with its cheaper lines and award-winning products, has had a positive effect on the value of local homes,” said Doug Crawford, chief executive of My Home Move.

The findings of this study confirm that dwellings near amenities and infrastructures are generally in high demand because of their convenience they provide, adding to their worth. Thus, investors would do well to aim for such properties to maximise value for money.

However, Crawford does note that an oversaturation of Aldi branches in an area could have the opposite effect on the property market.

“The only exception in our research was Reading, where prices have dropped — but with three stores within a two mile radius of the city centre it may be that consumer demand has now been met,” he said.

In Australia, Aldi is set to launch approximately 80 branches in 2016.

Top Suburbs : nightcliff , mt lawley , millner , chermside , lockridge


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