This is absolutely key to a house’s value. If you want to live in your new build for a while first, then choose wherever you want to live. If you want to sell it immediately, however, then you need to consider its location carefully. Building a huge house to an extremely high specification is all well and good, but if that house’s location is in an industrial area, or an area with higher crime rates, or just an area where property prices are generally low, then you will have lost a lot of that house’s value – this is ‘overdevelopment’.
By contrast, the ‘Waitrose Effect’ essentially means that premium brands are found in premium locations, so nearby houses are more desirable. This does impact the price of plots considerably, though.