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Investment Tips

6 Property Trends in 2021

| Colin Lee |

๐–๐ก๐š๐ญ ๐ฅ๐ข๐ž๐ฌ ๐š๐ก๐ž๐š๐ ๐Ÿ๐จ๐ซ ๐จ๐ฎ๐ซ ๐ซ๐ž๐š๐ฅ ๐ž๐ฌ๐ญ๐š๐ญ๐ž ๐ฆ๐š๐ซ๐ค๐ž๐ญ๐ฌ? ๐Ÿค“๐Ÿค“๐Ÿง
1. ๐‘ท๐’“๐’๐’‘๐’†๐’“๐’•๐’š ๐’…๐’†๐’Ž๐’‚๐’๐’… ๐’‡๐’“๐’๐’Ž ๐’‰๐’๐’Ž๐’† ๐’ƒ๐’–๐’š๐’†๐’“๐’” ๐’Š๐’” ๐’†๐’™๐’‘๐’†๐’„๐’•๐’†๐’… ๐’•๐’ ๐’“๐’†๐’Ž๐’‚๐’Š๐’ ๐’‰๐’Š๐’ˆ๐’‰.

As property values rise and the media reports more positively on our housing markets, FOMO will drive more buyers to enter the market before it prices them out.

Home prices are currently surging across Australia, auction clearance rates remain high, and the media keeps reminding us that we are in the midst of a property boom.

As a result, emotions are running high right now, with FOMO (fear of missing out) being a common theme in Australia’s real estate markets.

2. ๐‘ญ๐’Š๐’“๐’”๐’•-๐’•๐’Š๐’Ž๐’† ๐’ƒ๐’–๐’š๐’†๐’“๐’” ๐’˜๐’Š๐’๐’ ๐’ƒ๐’† ๐’”๐’’๐’–๐’†๐’†๐’›๐’†๐’… ๐’๐’–๐’• ๐’ƒ๐’š ๐’Š๐’๐’—๐’†๐’”๐’•๐’๐’“๐’”.

While there were many first-time buyers (FHBs) in the market in the first half of the year, buoyed by the many incentives available to them, FHB demand is fading as property investors re-enter the market and property values rise.

3. ๐‘ป๐’‰๐’† ๐’—๐’‚๐’๐’–๐’† ๐’๐’‡ ๐’“๐’†๐’‚๐’ ๐’†๐’”๐’•๐’‚๐’•๐’† ๐’˜๐’Š๐’๐’ ๐’„๐’๐’๐’•๐’Š๐’๐’–๐’† ๐’•๐’ ๐’“๐’Š๐’”๐’†

While many factors influence property values, consumer confidence, low interest rates, economic growth, and a favorable supply and demand ratio are the main drivers of property price growth.

However, Australia’s low mortgage rates continue to underpin the country’s very strong growth in property prices.

4. ๐‘ท๐’†๐’๐’‘๐’๐’† ๐’˜๐’Š๐’๐’ ๐’‘๐’‚๐’š ๐’‚ ๐’‘๐’“๐’†๐’Ž๐’Š๐’–๐’Ž ๐’•๐’ ๐’๐’Š๐’—๐’† ๐’Š๐’ ๐’‚ ๐’…๐’†๐’”๐’Š๐’“๐’‚๐’ƒ๐’๐’† ๐’๐’†๐’Š๐’ˆ๐’‰๐’ƒ๐’๐’“๐’‰๐’๐’๐’….

People will pay a premium in our new โ€œCovid Normalโ€ world to be able to work, live, and play within a 20-minute drive, bike ride, or walk from their home.

They will look for shopping, business services, education, community facilities, recreational and sporting resources, and some jobs within a 20-minute drive.

Residents in these areas have come to value the ability to be out and about on the street socializing, supporting local businesses, volunteering at local schools, and enjoying local parks.

5. ๐‘ด๐’๐’“๐’† ๐’†๐’™๐’‘๐’†๐’๐’”๐’Š๐’—๐’† ๐’‘๐’“๐’๐’‘๐’†๐’“๐’•๐’Š๐’†๐’” ๐’˜๐’Š๐’๐’ ๐’๐’–๐’•๐’‘๐’†๐’“๐’‡๐’๐’“๐’Ž

The current property cycle was initially characterised by all segments of the market rising โ€“ other than inner-city high-rise apartments.

But now the high end of the market is leading the growth in property values

6. ๐‘ป๐’‰๐’Š๐’” ๐’Š๐’” ๐’‚๐’ ๐’–๐’‘๐’ˆ๐’“๐’‚๐’…๐’†๐’“-๐’…๐’๐’Ž๐’Š๐’๐’‚๐’•๐’†๐’… ๐’„๐’š๐’„๐’๐’†.

The current property and economic environment, as well as the scars left on many of us by a year of Covid-related lockdowns, have led to an increase in the number of Aussies looking to upgrade their lifestyle.

Many tenants are no longer content to live in small, dingy apartments, and with an abundance of rental units available in many areas, they are taking advantage of the opportunity to upgrade their living situation.

Other tenants who have saved a deposit are taking advantage of many of the available incentives and becoming first-time home buyers.

With record low interest rates and booming real estate markets, many existing homeowners are upgrading to larger homes in better neighborhoods.

While a small number of homeowners are upgrading their lifestyle by moving out of the big city to regional Australia, more Australians are looking to improve their lifestyle by moving to a better neighborhood.

Many Baby Boomers are looking to upgrade their accommodation by moving out of their old, tired family home into large family-friendly apartments or townhouses.

But theyโ€™re not looking for a sea change or tree change, theyโ€™re keen to live in โ€œ20-minuteโ€ neighbourhoods close to their family and friends.

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