The early months were a time of great uncertainty not only in Australia but all around the world. Times of instability, crisis, and the eventual restrictions on mobility and travel to Australia were – and to a large extent remain – detrimental to the economy as a whole.
Although the dust is seemingly starting to settle in the wake of the global pandemic, the real estate sector is seeing an impressive rebound across the country with homeowners and investors eyeing up property and hoping to get a great return on their investments.
Dual occupancy homes began to be popularised, especially in metropolitan areas such as Brisbane, Melbourne, and Sydney, well before the onset of the pandemic, and although the housing market took a relative dip during 2020, 2021 and onward seem to show plenty of promise.
Fear of Missing Out (FOMO)
A fairly well known term amongst investors is the fear of missing out (FOMO). No doubt, anyone that missed Australia’s previous booms may certainly have felt a fear of missing out on relatively affordable property after having seen massive increases in property values leading up to 2020.
Similarly, Australia is currently undergoing what has been called a ‘once in a generation property boom’ in 2021. Is it too late to board that rocket to the moon? Naturally, the market tends to reward patience and playing the long game rather than get-rich-quick schemes, so investing earlier would most likely have been better. Nevertheless, we feel that the time is just right to buy that ticket to the moon and to invest in dual occupancy property.
Factors Affecting Housing Price Increases in Australia
What’s driving this incredible growth? The rest of the world is undergoing various stages of government-mandated lockdowns, the easing of restrictions, and in some countries travel has pretty much resumed. In Germany, the UK, and the US, for example, property prices are once again booming due to a range of factors of which Australia shares many of these similarities:
- Mortgage rates continue to remain fairly low
- The Australian government’s response to the transmission of Covid-19*
- Private business has begun to reopen, and optimism is returning gradually
- Supply and demand: the demand is astronomically high whilst supply remains limited and scarce
- First time home buyers are once again able to consider the purchase of real estate
*While perhaps controversial, the rate of infections and deaths remain remarkably low as of June 2021.
Is Real Estate in a Bubble?
Well, maybe. Real estate prices in Australia have been amongst the highest in the world, especially in large cities, for quite some time now. Marginal property price increases aren’t necessarily a sign of a market bubble, but it’s anyone’s guess as to whether or not there actually is a real estate bubble, and if so, what the fair market price is for a home in Sydney or Melbourne.
What matters is that the real estate market, and dual occupancy homes are a major component of this, has shown great resilience during the past year and the rebounding effect looks very promising.
Why not consider building your dream home this year? Dual occupancy is a safe, steady investment that can yield passive income and weather the storm quite well as has been shown.
Design and build your dual occupancy home with Trevor Homes.