2021 Sees Property Buyers Pivoting to Suburbia
In Melbourne, there’s an exciting new property market trend emerging: 2021 is seeing an undeniable pivot towards the suburbs, as consumer preferences are changing. There’s a distinct shift away from inner city apartments and units, with more buyers entering the detached housing space. Welcome the suburbia’s time in the sun!
What’s Driving the Shift to the Suburbs?
Inevitably, the events of last year re-shaped the lives of many Australians. It’s made us re-evaluate our priorities, think about our lifestyle and working habits and ultimately, changed the way we use our homes.
Extended lockdowns have forced Melbournians to be resourceful, and many are now enjoying the advantages of their newfound work-from-home arrangements. The need to be close to their city offices has evaporated – now that they’re working from home, they no longer need or want that proximity to the inner city.
With only the occasional visit to their office space to worry about, many city dwellers would rather escape the hustle and bustle of the metropolis, favouring the slower pace and extra elbow room offered in the suburbs. These areas still offer all the conveniences needed for contemporary living, including vital transport links to the CBD.
For the younger generation, the concept of multi-generational living is gaining momentum. Some young people are leaving the private rental sector and returning to the family nest to save money. And the domino effect is obvious: families need bigger houses with more living space, which simply aren’t available or affordable in the inner cities. With parent’s plans to downsize delayed, these buyers are focussing on more affordable family housing options in the fringe areas.
Public health concerns are another significant fuel to this shift in consumer preferences. Prior to the pandemic, population density in the Australian capital cities rose significantly, with many folks opting for apartment living in the CBDs. More recently, we’ve learned to value our personal space and the once unfashionable outer suburbs are becoming popular as buyers prefer properties which offer privacy, security and more breathing room.
What are Buyers Actually Looking For?
Outdoor entertaining areas, home offices and bigger backyards are on buyer’s bucket lists. These changes reflect the way that Melbournians have adapted to the changes forced on us: over the past 12 months we’ve spent more time than ever before within our own four walls, and the need for extra space has become important. Families with younger children are seeing more value in properties with larger living spaces and outdoor play areas. And with dining out restricted, many of us have re-discovered the simple joy of entertaining family and friends in our own homes.
It is predicted that during 2021, detached houses will continue to out-perform inner city apartments and units. As Australia enters the work-from-home era, space for a home office has become essential. Remote learning for students during 2020 also added another dimension to how families use our homes. All in all, many people have decided that it’s time to make the break and head for the suburbs.
Affordability
With interest rates extremely low and government stimulus packages at record highs, larger properties have become a realistic option for those who simply couldn’t have afforded them pre-pandemic. In addition to this, with travel restricted and folks encouraged to stay at home, many people have been able to save faster, and they’re now ready to invest in their own home.
Activity in the first home buyer’s sector is also significant, with current government grants being a major stimulus.
In short, the future for Melbourne’s property market in 2021 is a bright one! With no immediate change to interest rates forecasted, buyers will continue to line up for suburban properties and prices will continue to increase. This fever of activity is what inspires sellers to list properties, and the market is forecasted to remain hot throughout this year and beyond.
What to learn more about this trend? Reach out to your local Love & Co team – we love to chat about all things property and the North!