Over the next 15 years our population will increase to 30 million , 1 in 5 will be over 65, and our passion for renovating will increase.. So what influences will this have on the property market?
According to the CBA, specific long term trends are emerging. As an investor you need to understand these trends.
1. Population Growth
An increasing population requires smart new construction that keeps pace with population growth. 89% of us live in metroploitan areas, driving up demand & price in these areas. Regional areas are often more affordable by comparison ( or can be a trap for the unwary).
2. Mult unit dwellings.
The trend to smaller, energy efficient homes, is growing. Apartments, townhouses and semi attached dwellings are a positive impact on your budget & the environment.
The rise of the 1 person household – this is the fastest growing group. We are marrying later, living longer & divorce is more common. This trend is smaller apartments and houses that suit lone residents. Our ageing population requires different housing needs. Factors such as easy access to quality health care , public transport and safety, will influence demand and price .
4. A keenness to renovate.
This will see an increase in the price of unrenovated dwellings in high demand areas. Houses wil need to cater for a digitally focussed workforce as more companies introduce remote & flexible work arrangements.
As investing is a long term strategy, all these trends need to be carefully considered prior to purchasing.