Did you know that the race that stops the nation also affects real estate?
According to real estate website Domain, Australia’s biggest horse race impacts property in five ways:
1. Interest rates: Historically, the Reserve Bank of Australia has changed interest rates on Melbourne Cup day, having done so on 10 Melbourne Cup days since 1991. This makes Melbourne Cup day the most likely day for rates to move.
2. Street names: Many streets around the country are named after Melbourne Cup winning horses. 29 streets feature Phar Lap-inspired names, with winners Makybe Diva, Rain Lover, Kingston Rule, Grand Flaneur and Black Caviar also taking street-naming rights.
3. Auction listings: Traditionally, auction listings in Melbourne plummet on Melbourne Cup weekend, falling from around 1000 listings to just 100.
4. Heritage listing: A winning horse adds to the likelihood that a property will secure heritage listing. One such example is Wollomai House, built in 1876 for horse owner John Cleeland and named after his 1875 Cup winner Wollomai.
5. Property development: More than one property developer has used a connection with winning horses or trainers as a selling point in their new developments. One example is Bart Cummings’ old training ground Saintly Place. It has now been redeveloped into 61 apartments and retained the name Saintly Place after the 1996 racehorse winner. The redevelopment was advertised as ‘once the home to some of Australia’s finest thoroughbred racing horses’ next to Flemington racecourse.
Read the full article from Domain to gain more of an insight into this interesting connection.