Amid the property boom, investors may be wondering whether they are better off waiting it out, or biting the bullet and purchasing now?
Although the past year has seen slower population growth and a weaker labour market, the Australian housing market has progressed significantly better than expected. Government support and low-interest rates have boosted the property market, while the impacts of COVID have affected the overall property demand and requirements, due to lifestyle and work-related changes.
New research conducted by major bank NAB surveyed 330 property professionals nationwide to rate the extent COVID has changed the importance of a range of key factors for home buyers, including:
- The respective appeal of a house instead of an apartment
- Purchasing in a metro area vs regional
- Size of property or land
- Amount of buyers prepared to borrow
- Importance of a dedicated study or work area
- Good local shopping, restaurants & other amenities
- Quality of public transport
Unsurprisingly, the survey found 9 in 10 deem a study or work area as more important now to homebuyers than it was pre-pandemic. With many employees and businesses now following in a “hybrid” working environment, homebuyers are prioritising a suitable space to work remotely in their own home.
Presumably reflecting out-performance of detached house prices relative to units and apartments, 63% of all experts deemed it more important to buy a house rather than an apartment.
Other factors holding more value included:
- Access to good local shopping, restaurants, and amenities (75%)
- Bigger houses (65%)
- Buying a house over an apartment (63%)
- Access to good local public transport (51%)
The need to be in a metro area saw the greatest decline, with over half of those surveyed stating this is now less important than it was pre-COVID. Due to Victorians enduring longer lockdowns, it’s no surprise they are seen as the most willing to move away from Metro areas.
Has your perception changed of what is important as a home buyer since COVID? It might be time to re-evaluate your current situation. Feel free to get in touch with one of our brokers today on 02 8377 3933. The team at Azura Financial will ensure you get the best advice to make the right choice for your personal situation.