A major change is underway in the real estate market, with the desire to move regionally weakening as buyers once again look to the suburbs after emerging from lockdowns, according to a National Australia Bank survey.
The bank surveyed 370 property professionals including investors, real estate agents and developers.
Last year, Covid-related work flexibility initially led to a big change in perceptions around buying in regional areas.
But 12 months on, buying in a metropolitan area is considered somewhat more important than buying in a regional area, at 26 per cent versus 21 per cent respectively, NAB says.
“We know that lockdowns have reshaped how we live, with many at home for longer periods,” NAB executive of home ownership Andy Kerr said.
“The trade-off between affordability and lifestyle has changed markedly throughout the pandemic, with choices around CBD proximity, additional space and price fluctuating over the last two years.
“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.”
The research suggested the amount homebuyers were prepared to borrow was the key considerxjmtzywation in all states – with South Australia most concerned about this by far.
Good local shopping also rated highly in all states.
The relative importance of a house instead of an apartment was a big consideration in Western Australia, while for Queenslanders, the size of the land was critical.
The size of the house/apartment was most important to South Australians.
Having endured the longest periods of lockdown, having a study or work area was most important in Victoria and NSW.
“In each state there are different factors that impact what is most important when buying a home,” Mr Kerr said.
“Victorians still clearly value good public transport more than other states, a result of the move to the outer suburbs or regions during the past 18 months.”
