While living through 2020 and 2021 of the covid-19 pandemic, we saw an increase in the housing markets in regional Australia. Social distance, lockdowns, and work from home options all contributed to people’s decisions to flee their cities and take up residence in regional Australia.
This was in part because of the fact that you could get more for what you pay for in regional Australia, compared to what you would get if you stayed in the cities. And the luxury of having a multi bedroom house with a backyard was a lot more appealing than being cooped up in an apartment in a city during a lockdown. Really it is no surprise so many Australians who had the means to move regionally did so.
The Trend Is Changing
Recently this trend has been changing. With most of the old covid-19 restrictions a thing of the past, more and more Australians are returning back to the office, and cities are once again offering all of the spectacles they did in the past. The hospitality and entertainment industries are especially picking back up again.
All of these are contributing factors as to why we are seeing a flip in the demand. Now Australian capital cities – in particular those along the east coast – are becoming an increasingly popular choice for home buyers.
One of the ways to best understand this growing trend is to see each city as having three ‘rings’ surrounding it. The three rings are inner, middle, and outer. The rings reflect on the inner, middle, and outer suburbs of a city, respectively.
Recent research that was conducted by PEXA and Urbis reveals insightful information about this trend flip. The research says that “for those seeking homes to purchase, the outer rings of Sydney, Melbourne and Brisbane are the ‘go to’ markets, offering higher turnover at lower price points.”
Evidence from the research also sheds light on how this is affecting the rental market as well. The research says, “for those seeking rental accommodation, the inner rings have been doing more of the heavy lifting, although there has been a notable shift to more rented property in middle rings over time,” and that “The volume of rental listings overall is trending down across all three cities.”
Head of research at PEXA Mike Gill says they noticed that the “new housing supply was not evenly distributed across regions in our major cities.”
“Looking deeper into the middle suburb segment, new housing has been relatively supply-constrained, with demand trending to outstrip supply over an extended period. This trend of the ‘missing middle’ is likely to continue, unless new housing supply is unlocked in order to meet demand from suburban buyers and renters,” he said.
As we head into a buyers market we are interested to see if inflation and interest rates will have any impact on this current trend.
Your Guide For Navigating The World Of Home Loans
With a background in banking, finance, business development and project management, there’s no better advocate to have on your team than Nikki Berzin. As a fully qualified mortgage broker and director of Cherry Lending & Finance, Nikki is passionate about all things finance, and empowering her clients with the tools to hit their property goals is what she does best.
If you’re looking to get into your first home, purchase an investment property or even want to look at your options for refinancing, the first step is starting the conversation. Get in touch with Nikki today, or call her directly on 0427 374 155 to bring your mortgage dreams to life.
Disclaimer: Cherry Lending and Finance content provides general information only. The views and opinions expressed in this article are those of the author and do not necessarily reflect or represent the opinions of any other entity whatsoever with which I have been, am now or will be affiliated. Nor do they reflect the official policy or position of any agency, organisation, employer or company.
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