A Remarkable Recovery in The Australian Housing Market
CoreLogic has released a report on the profile of the current buyers in 2020.This report will educate you on why the Australian housing market is on its recovery as opposed to the negative report from the mainstream and other sources.
- New buyers are looking at the quality of the property, location before they buy it as a principal place of residence rather than renting it out to someone.
- The demand for medium density dwellings in inner -urban areas is on higher demand as evidenced by 171,760 new dwelling approvals by Regional local councils across Australia. These areas include ACT, Brisbane, Sunshine Coast and Gold Coast, parts of Western Sydney and areas on the fringe of the Melbourne metropolitans, for example, Urban centres of Victoria, New South West Queensland.
- The data shows us that there were more approvals for detached houses 60.7% followed by high-density units (four to more storey building like the Grove, averaging 25.2% while approvals for housing type averaged 14.1%.
- In this report, high density housing option was favoured by young families seeking a more affordable housing close to the city centres. Also, older Australians are downsizing in their current areas of residence to move to medium density areas in order to reduce housing cost in retirement. They prefer moving to arears where there is established transport and social infrastructure such as hospitals and recreation facilities to enjoy their retirement lifestyle.
- The other factor that will drive the recovery of housing market this year is the continued increase in population in metropolitan regions. This will increase the demand for houses and multifamily units.
- The ABS data suggests that dwelling prices are expected to continue rising in 2020, there will be a surge of investors buying more housing units, forcing cheaper housing options to rise.
- It is believed that the millennials will try to buy their first homes in unaffordable markets by taking advantage of the new innovative mortgage functions that allow mums and dads to fund their children’s housing, joint venture purchases between friends is becoming an important strategy in owning houses. In a similar cohort study, the millennials in the ages 25-34 age group will be a transition from renting to purchasing their own homes to fulfil the “Australian dream.”
- In this recovery period, the investor cohort is expected to rise in the year as a result of rising rental demands from those who cannot afford the above strategy. In addition, the low mortgage rates that the bank governor has slapped on the lending institutions, will attract more and more investors into the housing market.
If you are on the fence, this is the time to enter the housing market, by taking advantage of the low interest rates. Come out of your comfort zone and take a giant step.
A certain man who loved his job because he was well paid, and he never thought of saving money. Anyway, one day he received a redundancy letter and got laid off. Soon or later he was homeless. Why? Because he lacked financial education!
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