Whereas during the pandemic, priorities changed for many people who became more inclined to living away from cities and closer to sea and tree, the tides are turning in 2022 as buyers once again look to the suburbs after emerging from lockdowns, according to a National Australia Bank survey.
During the pandemic last year, CoVid-related work flexibility became a driving factor for the big change in perceptions around buying property in rural areas. Now that the pandemic has entered a new phase, however, with dynamics becoming relatively more “normalised” and workers returning to the office at least a few days each week, there is a greater need to be back within CBD proximity.
Over the last 2 years, choices around CBD proximity, additional space and price have fluctuated.
“What we are now seeing is little green shoots of people returning to inner-city suburbs, looking for the balance of lifestyle and value as cities like Melbourne and Sydney have opened up. This has been aided by more subdued price growth in these areas,” says Andy Kerr, NAB’s executive of home ownership.
Mr. Kerr adds that the gradually growing lure of inner suburbs in cities like Melbourne and Sydney are being driven by young first home buyers seeking nightlife.
Outer suburbs still hold ample appeal in NSW where the view persists that lockdowns would last for a bit longer. Being the areas that have endured the longest stay-at-home restrictions, having a work or study area was a priority for Victoria and NSW.
Outer suburbs with good public transport have remained strong throughout the pandemic and offer better value in general, giving the right balance of a bit more space and easy access to the CBD.
The speed at which properties are currently changing hands has given rise to a need for banks to process loan applications more swiftly. Whereas 12 months ago, NAB was taking an average of 5 days for processing, 80 percent now get a decision on the same day.
Overall, Australian real estate and commercial business properties are gaining traction for a full rebound into 2022. Thus, it’s looking to be a very promising year indeed for property investors.
If you’re planning to buy, sell or invest in real estate, this year would be a great time to do so. Not sure where to start? Or perhaps you have some experience in real estate investment but would like to expand your knowledge. We can help you.
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