Reading trends in the property game can be a great strategy for property investors to adopt to ensure their portfolio is successful and grows in value.
Understanding Australia’s lifestyle and demographic trends will provide you with insight for your property portfolio that isn’t going to change overnight, or even in the medium term.
If you can read the housing trends and predict where they are heading in the future you have a major advantage when it comes to choosing your investments.
Let’s have a quick look at some interesting demographics trends according to the Australian Census, as well as the implications for these changes.
Aging population: Our baby boomers are becoming empty nesters and as a result, their lifestyles are changing. With many opting to downsize, apartments boast the security and low maintenance lifestyle many seek.
Changing population: According to the most recent Census, the average number of people living in each household is decreasing, while the proportion of lone-person households, couple only and single parent plus dependent children households are on the increase. This indicates less demand for large homes with backyards.
Growing population: With Australia’s population fast approaching 24 million peoples, the demand for property is also on the rise. Medium and high density living is not only easier to supply, but in Melbourne the building approvals for high density housing is outnumbering detached houses.
First home buyers: With housing affordability, in our capital cities in particular, among the most expensive in the world, the property market is becoming less accessible for first time home buyers. Many more first-time home buyers are willing to compromise their housing preferences just to get into the market, and are even becoming renting investors.
Changing preferences: Due to an increase of people wanting to live closer to the city, apartment living in Australia is surging and is predicted to be a lasting trend in the real estate market. Not only can this be a more affordable option, it also offers convenience of location and the benefit of a low maintenance lifestyle.
*Pictured: Apartment complex at 388 Murray Road, Preston