Property investors need to be aware how the COVID-19 pandemic changed the preferences of Australian homebuyers.
The latest research from NAB found around one in 10 Australians have moved because of the pandemic and are not planning to return.
Around one in five Australians said having a study or work area or living in a regional area is crucial amid the current conditions.
NAB executive for homeownership Andy Kerr said the findings of the study reflect how the flexible working trend provides opportunities for Australians to live wherever they like.
“Without the daily commute, people are looking at the suburbs that haven’t been available in the past as a viable option to actually own a piece of land and build a house,” Mr Kerr said.
“Australians also clearly value lifestyle choices, having that work-life balance and being closer to family.”
Top reasons for moving
Interestingly, around two in five Australians who moved were driven by the lifestyle of their target market.
Roughly a third of those who moved said they are considering their families’ well-being.
Around the same share of owners moved for employment purposes.
“Queensland and South Australia have largely avoided lockdowns and restrictions and offer the lifestyle benefits unique to both states,” Mr Kerr said.
Meanwhile, New South Wales continues to attract local and interstate buyers who are looking for work opportunities.
On the other hand, around 20% of buyers from Victoria wanted to move to regional areas or in other state to avoid lockdowns.
“Many moved to the regions with areas like Geelong, the Surf Coast and Mornington Peninsula proving popular,” Mr Kerr said.
What homebuyers are looking for
In South Australia, around 51% of buyers would like to buy a house instead of apartments.
This was the highest proportion of buyers preferring houses over apartments.
Overall, only two in five buyers are looking to buy a detached home.
The study also found that more than 50% of Australian buyers would like to live near the local café and shopping centre.
“Public transport is also a big factor in both NSW and Victoria and our data tells us that suburbs near train and tram lines in both states offer great value to purchase a home or apartment,” Mr Kerr said.
“Apartment living was popular in both NSW and the ACT with plenty of opportunities to find a bargain in both states.”
“Those living in Sydney can find more affordable options in apartments given the rise in house prices in 2021.”
Photo by Roberto Nickson on Unsplash