House prices & population shift to regions

Posted 5/8/2021 by Alasdair Spinner
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Housing trends

 

In very affluent societies like the UK and Australia, Covid has  changed the relationships we have with cities, our non-medical workplaces and our homes. 

 

Pundits are predicting office based work will be a hybrid of WFH and workplace. The pandemic has also made Aussie city dwellers reconsider their relationships with the cities they’ve been traditionally drawn to. A high percentage of the country’s population live in its largest cities. Home buyers in Sydney, Melbourne, Perth over the last 25 years have been happy to secure mortgages 6 times their annual incomes to participate in what has been an incredible housing boom. Recession proof resource driven economies attracted people from the regions like moths to a lamp during this time.

 

BUT recently released Australian stats from the Australian Bureau of Statistics may suggest a profound change is afoot. 2020 saw a net loss of 43k people from Australia’s greater capital cities. Whilst not a big number it is double the previous year and is the largest net move to the regions since 2001.

 

Affordability is a big driver. 

 

July 2021 figures show Sydney average house prices were $1.4m but in the regions it is $612k - a difference of 57%.

 

Melbourne - $1m but regional Victoria $497k - difference of 51% less. 

 

Other state capitals and regions tell the same story.

 

Affordability is important but it isn’t the only reason. People aren't leaving the regional cities as mush as before. Improved infrastructure, amenities, and education have developed more sophisticated economies to retain people.

 

Ultimately, Australians are driven by lifestyle. If there is an interesting and stimulating lifestyle on offer with the employment opportunities and housing to accommodate it then this trend will only intensify. 

 

Some regional centres include (in no order): Bendigo, Dubbo, Armadale, Tamworth, Bathurst, Ballarat, Townsville, Coffs Harbour, Port Macquarie etc.

 

References: 

Australian Bureau of Statistics https://www.abs.gov.au/release-calendar/latest-releases 










 

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