Lockdowns and restrictions have sadly been the new norm in this crazy year, 2020.
Eating out and going to events has been difficult with the lockdowns. Travelling is also impossible with domestic and international borders closing their doors.
Many of the ways in which we used to socialise, unwind and reward ourselves have been halted.
Data search from Realestate.com.au reveals that a greater number of Australians are contemplating investing their excess cash in real estate. Lower borrowing costs and the restrictions on people’s ability to move and spend their money are likely key drivers of this trend.
Cameron Kusher, REA Economic Research Executive Manger, said they experienced a rise in overall search volumes and price-filtered searches, revealing six key trends in new real estate buyer behaviour.
A rise in demand for lower-cost properties
Searches for properties with prices of $500,000 or less increased from 32.9% (September 2019) to 33.7% (September of 2020).
Increase in searches for properties worth upwards of $1m
Searches for properties costing more than $1 million increased from 21.2% (September 2019) to 23.1% (September of 2020).
Capital city properties worth over $1m see greater interest compared to regional areas
Capital cities saw 21.2% of price filtered searches for properties priced over $1 million. This is 10.6% higher than the 10.6% searches regional areas got last September 2020.
Regional properties priced over $1m see a positive shift in demand
Comparing to the previous year, capital city searches for properties worth over $1 million increased only by 0.4%. Regional area searches, on the other hand, increased by 1.7% for the same valued properties.
Regional Victoria sees greater demand for $1m properties compared to Melbourne
From 21.4% in 2019, Melbourne search share for properties in excess of $1 million fell to 20% this year. In comparison, Victoria enjoyed a 1% increase (from 6.1% to 7.1%) in search shares for the same valued properties.
Leap in demand for NSW properties in excess of $1m
Sydney properties searches valued over $1 million increased from 38.2% to 40.7%. Regional New South Wales enjoys an even greater increase in searches from 11.3% to 14% this year.
This data tells us that the demand for regional housing is increasing due to Australians wanting a shift in their lifestyle. With work from home arrangements being more prevalent now, people are moving away from capital cities and moving into more spacious regional areas. It will be interesting to see how regional housing markets continue to evolve in 2021.
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