Driverless cars and… real estate?

  • In April 2018, Perth will be testing driverless cars. These cars will be booked using an app, and will take you to your destination without you even having to look at the traffic. The organisers of this trial intend to have the service up and running as a viable transport business within four years.
  • A driverless shuttle bus has already been in operation for months on Perth’s foreshore and a two-year trial of driverless buses is set to start soon at Sydney Olympic Park.
  • 90% of road accidents in Australia are caused by human error, and NRMA chairman Kyle Loads has stated that driverless vehicles will reduce or even eliminate “[accidents] caused by drug-driving, drink-driving, speeding… There’ll be literally thousands of lives saved as a result of in the future people utilising autonomous vehicles.”

This is not science fiction.  This is real change that is actually happening now.

 

 

But what does all this have to do with real estate?

While nobody can predict the future with 100% accuracy or give you guaranteed forecasts of exactly where the real estate market will sit in 5 or 10 years’ time, there are some conclusions that can be drawn from the above information and some scenarios the astute real estate owner will need to consider now in order to take advantage of the opportunities of the future.

If you can have genuine “office time” while you commute in privacy, comfort and safety, there will be less need to live within quick and convenient driving access to the major city centres. People will be able to move further away from business hubs, and the priorities for real estate purchasers and renters may be factors other than convenience for work. The focus is likely to shift to decisions about where to live being based more on the beauty of an area, the lifestyle and space offered, and the sense of community in the locality.

In addition to changes in driving patterns, people who previously relied on public transport will also spread out instead of being concentrated around train stations and bus routes. This may slow the growth of property values in these traditional commuter locations, but increase values in previously neglected localities. Perhaps now is the time to look at selling investment properties near the train lines and look at purchasing lower priced investments currently not being serviced by public transport? Savvy purchasers may wish invest in such areas and work on improving the appeal of the community in order to attract future commuters – and their renting or purchasing dollars – once the driverless car services are launched.

As demand for lifestyle properties away from business hubs increases, so will prices. If you have medium- to long-term plans for a sea change or tree change, you may want to do it sooner rather than later, or you may find yourself priced out of the lifestyle property market.

The face of cities will change. Those that own their own driverless cars will still need somewhere to park, but with the increasing adoption of uber-style driverless services, the need for large numbers of parking spaces in cities will reduce. This will free up current parking spaces for development, whether residential, commercial, or recreational. Perhaps now is the time for the shrewd commercial investor to pick up an older parking garage with a view to developing it in the future?

If you are thinking of taking advantage of the opportunities of the future by either buying or selling property, please give us a call. We would love to hear from you.

 

By Rebecca Nutley

 

Want to read more?

The future is here with legislation to trial automated cars passing Parliament

Driverless cars ‘to save thousands of lives’ as trial set for NSW

Driverless cars set to be on Victorian roads in 2018

Uber-style driverless cars set for Perth as part of international trial

Adelaide paves the way for driverless cars

Driverless bus trial in South Perth an Australian first

Could driverless cars hit your house price?

 

Investing Rural lifestyle Selling The future of real estate
Related Posts
Driverless cars and… real estate?