In Economics & Finance, Off the Beaten Track, Property Market

As cut-price supermarket chain Aldi continues to roll-out its planned 800 stores across Australia, Coles and Woolies – our love-them-or-hate-them familiar giants are cutting prices, and even reducing their range of goods.

Aldi claims 10% of the grocery market already, with at least 400 more stores yet to be built

Whatever else happens, it appears the supermarket landscape in Australia has already changed significantly – arguably mostly due to Aldi – the “Aldi Effect“.

But, there may be another aspect to this…

In the UK, property prices near Aldi supermarkets in some locations are said to have risen significantly. For example, the value of Chipping Norton, a small town in Oxfordshire, and previous home of ex-British Prime Minister David Cameron, soared by 133% after Aldi set up shop according to a report in My Investment Property online edition.

A 33% price increase would be a massive disruption to the market, but 133%?

That would be historically unprecedented!

On those numbers, Adelaide’s $450,000 median house price would rise to over $1 million for proximity to Aldi.

I don’t think so!

Maybe a few percentage points for proximity to good shopping?

I may be mistaken, but I’m very doubtful that the alleged “Aldi Effect” will be limited to grocery prices in Adelaide.

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