Property owners living close to Melbourne’s controversial sky rail — the upgraded and partially elevated rail line between between Caulfield and Dandenong — are changing their minds about the negative impacts the project will have on the value of their homes.

In fact, some believe the sky rail is a boon, bringing not only a reprieve to traffic congestion, but also attracting buyers to the area.

Ian and Kate McIntosh are selling their townhouse in Murrumbeena, just 300 metres from the new (and elevated) Murrumbeena station, which opened in June.

Mr McIntosh and his wife bought the property, in Murrumbeena Road, eight years ago as a home away from home – somewhere they could stay to be closer to their two children and five grandchildren who live less than two kilometres away.

“We actually live on the Mornington Peninsula,” Mr McIntosh said. “[When it was announced in 2016] we felt sorry for people who had it right on their doorstep.

“Now we think it’s great … the other day we went for a walk on the streets nearby and even underneath the rail and we couldn’t believe how quiet it was.”

The positive turnaround has happened not just for property owners, but also real estate agents who say the market in the area has largely remained unaffected by the new rail.

Jonathon Eaves from Ray White Oakleigh said the outlook for property owners was far more positive.

“When it was first proposed, there was obviously a huge kerfuffle about it and what would happen to property prices,” Mr Eaves said.

Concerns were eased — for some residents at least — when the state government offered to buy properties affected by the building works and proximity of the line.

About 111 properties were earmarked (eligible), with 74 confirmed as bought by the government.

“It was a pretty good deal. They matched whatever the property was worth as well as paying the stamp duty, conveyancing [for a new property purchase at up to $1.2 million] and moving costs,” Mr Eaves said.

While most were happy to take up the offer, other property owners were left questioning what they could afford if they sold and wanted to stay in the same area.

Mr Eaves said a few buyers may be put off by the sky rail overlooking properties, or changing the views or the noise, but this was a common rail-related issue, not just affecting properties near the sky rail.

“There’s always been a 10 per cent difference with properties near or backing onto a train line – it’s a general rule of thumb,” he said.

“Let’s face it, people in Toorak are still paying $10 million for a property on Toorak Road, so noise is obviously not that much of a deterrent.”

Ignacio Rodriguez from Beller agreed saying the sky rail hadn’t stopped buyers from moving to the area. A property he is selling on Poath Road, Murrumbeena, right near the new rail, recently garnered a lot of interest.

“We’ve had really good numbers through,” Mr Rodriguez said.

“There’s never been negative feedback [from prospective buyers] around the sky rail – if anything it’s been positive because it will ease the traffic around there.

“It hasn’t put buyers off; not in our experience anyway.”

Domain Group economist Trent Wiltshire said prices in the area had grown roughly in line with the Melbourne average.

“It looks like the sky rail hasn’t negatively impacted property prices in the area overall,” Mr Wiltshire said.

“In Murrumbeena, Domain Group data shows a rise of almost 5 per cent for houses in the past year while in Hughesdale, house prices rose by 12 per cent.

Mr Wiltshire said that although prices were generally up, homes that were right next to the sky rail would be likely to have seen “some price falls”.

Director of Gary Peer and Associates Carnegie, Leor Samuel, is helping the McIntoshes sell their townhouse. He said people were seeking houses closer to the rail lines because it was a faster way to get work.

“This type of work needed to be done in order to free up congestion and people are seeing the positives,” he said.

“I think people close to shopping centres and strips (like those in Murrumbeena) have an expectation of great public transport.

“The talk is how much better it is to date — it’s actually a positive — it’s better than what it was.”

*The figures of houses purchased and earmarked for purchase have been updated following new information from the Level Crossings Removal Authority.