Whether you’re planning to get on the property ladder as a first-time homebuyer or you already own property, you may be wondering what the value of your investment will be in the coming decade.
There’s no way of telling how much your property will be worth in 2030, much less in a few years’ time unless you’ve got a crystal ball. What can be inferred, however, is the likely value of real estate in Australia using current forecasts and projections, as well as the changing demographics in Australia.
Changing Lifestyles, Changing Needs
A big shift is taking place in the types of homes that Australians want. Whereas in the post-war 20th century, homebuyers wanted large, spacious homes in suburban areas with ample garden space and two-car garages and a short commute to the nearby CBD, modern day homebuyers tend to have very different lifestyles and working habits.
Moreover, families tended to start earlier on in life for the previous generations, rising from an average mother’s age of 25 in 1970 up to 31 in 2019. Fertility rates are dropping and many couples are now becoming “DINKs” (Dual Income, No Kids), so the need for large open areas has also declined.
Instead, many young homebuyers are looking for small, condensed properties such as inner-city apartments, tiny homes, and other small properties. Less space means less space to clean, which is another important feature for households with everyone working full-time.
On the other end of the spectrum, some homebuyers are looking for bigger properties than those of yesterdecade. Whereas in the 1950s, the average Australian home was about 100 square metres with the typical three bedroom arrangement, modern three bedroom homes are averaging around 240 square metres. This also feels a lot bigger due to the average household having far fewer children today.
Low Expense, Low Upkeep Homes
Most of us have busy lifestyles these days, so convenient housing is a must for many homebuyers. Commute times have gotten longer and suburbia has only grown in recent decades, so homebuyers are looking to maximise their comfort at home with home.
This also extends to upkeep and maintenance. One of the big benefits of renting rather than buying is that a tenant shouldn’t need to care about the expenses for things like redoing plumbing, electricity, upgrading, etc. This all falls on the property owner. As a property owner yourself, you may wish to consider a home that is easier (and cheaper) to maintain.
The energy crisis has also spurred the development of homes that maximise natural daylight and passive building principles, including solar PV panels, energy-efficient water heaters, and so on.
Regional Centre Growth
Sydney, Melbourne, and Brisbane may have been somewhat affordable for the average Australian a few decades ago, but it’s become somewhat of a pipe dream for many young first-time homebuyers these days.
Consequently, there has been an exodus of renters moving out in recent years to regional centres across the country. Not only is the cost of living far lower in regional centres, but government initiatives are underway to stimulate economic growth in these areas, such as immigration incentives for skilled labourers in regional centres across Australia.
At Trevor Homes, we proudly offer expert building services across Melbourne, including builders in Albion, where quality craftsmanship meets innovation. Our team also specializes as reliable builders in Altona, delivering outstanding results tailored to your needs. For premium solutions, our trusted builders in Ascot Vale and experienced builders in Aspendale ensure every project is completed to perfection.
Trevor Homes
Design and build your dream dual occupancy home with Trevor Homes.
