Change in demography to affect domestic buyers
The shift in demography is impacting the Australian property market like never before and it is worth studying the macroeconomic patterns pertaining to population, wealth of the nation, and age before making any sort of real estate decision. An article on the ‘Before It’s News’ website sheds light on few recent real estate trends.
Overseas and domestic investors behave differently
The domestic buyers will differ in their preferences from the overseas buying community and the former would not settle for anything less than schools, healthcare and shopping amenities near their dwelling areas. As an aside, the domestic investors and owner-occupiers will look for homes that are pretty close to large tracts of green public spaces and powerful transport system.
Property buying trends
Buyers are known not to choose a property on its individual merit. Now, more than ever before, the associated factors related to a property will come into play. Already, a remarkable trend in favour of café lifestyle is speedily emerging and the need for social hotspots near your home will only grow on from here.
Smaller lots and compact residential apartments may not find too much favour in coming times. One must hasten to add that this point is contest-worthy. Accordingly, we will take it up a little later.
Lesser mortgage defaults expected
House prices are not likely to move too much over the next year but the good news is that far lesser numbers of mortgage defaults are expected. Also, new homes are showing a robust trend for the second consecutive month. You can read the full article here.
I personally think that the walkable neighbourhoods/suburbs, just as the article suggests, may become a prime selection factor. Homes have to be quite near to the consumer destinations. Period! In this regard, we can take into account a large number of senior citizens coming back to the inner-city fold, departing from their much-loved suburbia, because of the lack of healthcare and convenience in those regions.
Issues of land dilution
I think that small lots and compact-sized homes may still do well, at least in areas which have an undersupply of development-ready land. About 22% of our population lives singly and such homes can cater to them beautifully. However, land dilution pertaining to smaller lots may make them a relatively less viable investment unless adequate measures are taken.
Is your home in walkable distance to the shopping areas and coffeehouses? Would you like it to be?