Lower property prices, less congestion, cleaner air, and now a global pandemic; there’s no shortage of reasons why some Aussies are deserting big cities and heading for the hills.
Australians are already skipping town
Over the past few years, there’s been a significant upswing of Australians moving to nonurban areas, be it the beach-centric lifestyle offered by coastal villages, the slower pace of country Australia, or the midsize hustle and bustle of regional centres. According to research released this year by the Regional Australia Institute, a whopping 1.2 million people moved to or around regional Australia between 2011 and 2016. Sydney and Melbourne even lost more residents to outer regions than they acquired, with the NSW capital experiencing a net loss of 64,756 residents to regional Australia and the Victorian capital a net loss of 21,609.
Escaping to the country during COVID-19
It’s probably safe to say that this trend didn’t slow down between 2016 and now, particularly during the pandemic. While data isn’t yet available to give us concrete insight into regional migration patterns throughout COVID-19, there’s anecdotal evidence telling us that more and more people are craving a sea or treechange amid this global catastrophe: there are countless news articles and reports of Aussies flocking to regional areas around the country, and we’ve received numerous enquiries from expats looking to do the same.
The move makes perfect sense. As the pandemic peaked in May last year, around half of Australians were mostly working from home. Despite the fact that several cities have started allowing workers to go back to the office, more employers are offering flexible working conditions and some have even shut their offices entirely in favour of employees working remotely. Now, people are no longer confined to living within commuting distance of their place of work and can choose to operate from practically anywhere. Many of our overseas purchasers, for example, are able to continue their global careers but do so from a remote beach house or a serene rural estate.
Regional areas also tend to have fewer inhabitants and are less densely populated than major cities – a potential advantage when trying to avoid contracting the virus. Add to that the general affordability, close-knit community and all-round quality of life, and there’s a very fine argument for hightailing it out of the city.
What it means for the property market
Hundreds of thousands of Aussies have returned to the country since March and thousands more are arriving each week, which is having a direct impact on the local property market: vacancy rates are low across all capital cities except Melbourne and property prices are expected to escalate as a result of increased demand. Looking at regional centres specifically, a CoreLogic report found despite these areas experiencing a downturn in house prices at the start of the pandemic, they were able to bounce back quicker and remain relatively stable compared to capital cities. In fact, the Illawarra just south of Sydney and Ballarat in Victoria’s Central Highlands were up 2 percent compared to last year. While there’s not yet any specific data on the impact of returning expats on regional property markets, we can’t help but think the influx of Australians looking for a new home and the overall shift towards regional living means there’s at least some correlation.
It’s still too early and there are too many factors to take into consideration – a future large-scale economic downturn, potential changes to work-from-home policies, and the return of pre-COVID buying and selling conditions – to indicate whether the boost to the regional property market is here to stay. As we continue to navigate our way through the pandemic, we’ll be eagerly awaiting the long-term outcome.
If you’re thinking about moving back to Australia and looking to purchase outside the major cities, we offer unparalleled knowledge of regional property markets around Australia and an end-to-end service spanning planning, purchasing, construction and management. Contact us today.
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