Each week we appear to listen to of a brand new growth or pattern to return about on account of the COVID-19 pandemic – and the newest change is ready to impression the housing marketplace for the foreseeable future.
You see, after years of home sizes shrinking, and of Aussies favouring low-maintenance houses with petite yards smaller footprints, new houses are getting larger once more.
It comes about as a part of a normal “rethink” of dwelling preparations, in line with CommSec chief economist Craig James, who says that lately, homebuilders had been overseeing progressively smaller homes on common.
Throughout 2018-19, the CommSec Home Size Trends Report confirms that the typical home constructed was the smallest in virtually 20 years.
That pattern seems to be flipping, nevertheless, with the 2020 CommSec report confirming that the typical measurement of a newly constructed home in Australia in 2019-20 is 235.8m2 – up 2.9 per cent on the earlier 12 months.
Newly constructed flats additionally elevated in measurement, with the typical new condo hitting a decade-high of 136.8 sq. metres, up 6 per cent year-on-year.
“Earlier than final 12 months, Aussie residence patrons had been constructing progressively smaller homes on common. Aussies had embraced flats in addition to smaller homes on smaller lot sizes. The truth is, the dimensions of the typical home constructed final 12 months (2018/19) was the smallest in 17 years,” James says.
“So whereas Aussies constructed larger houses over the previous 12 months, the massive query is whether or not the decade-long downtrend in residence measurement has ended? COVID-19 might play an enormous position in answering that query.”
The CommSec Dwelling Traits report reveals that even earlier than COVID-19, Australian homebuilders have been indicating their choice for barely larger houses, James says.
Nevertheless, government-imposed lockdowns in response to the COVID-19 pandemic “have prompted extra Aussies to re-assess their housing wants”.
“With extra time spent at residence for each leisure and work, some Aussies are searching for larger houses. Others are coming to the idea that the structure of their residence wants altering,” he says.
Which state is main the pack?
Fascinating, the state-by-state breakdown of residence constructing traits reveals some fascinating traits related to totally different markets.
Whereas NSW leads the pack by way of the share change, it’s the ACT the place houses are the most important – and within the Northern Territory, issues are shifting in the exact opposite of the nationwide pattern:
|Homes in-built 2019/20
Common ground space
|State or territory||Sq. metres||Yr on Yr change|
|New South Wales||235.0||6%|
|Australian Capital Territory||256.3||2.2%|
|Supply: Australian Bureau of Statistics; CommSec|
Australians are constructing the most important homes on the earth, forward of even the US, the report discovered.
So what does all of this imply for you as a property investor?
As all the time, it’s essential to concentrate on shifting trends and insights associated to actual property. For a few years there’s been a noticeable shift away from massive houses on massive, high-maintenance quarter-acre blogs, with folks (in interior cities specifically) preferring low-maintenance dwelling.
After the pandemic compelled many people inside for weeks or months on finish, with working from residence change into a “new regular”, it’s prompting everybody to reassess their existence and their houses.
However will this be an enduring change? It might be too quickly to inform.
Over the following 12 months or in order we settle into our post-COVID-19 – or extra precisely, “living with COVID-19” – world, it’ll change into clearer whether or not demand for larger houses is a pattern that’s right here to remain.
“Extra Aussies might embrace working from residence in an even bigger method, opting to maneuver away from flats in, or close to the CBD, in choice for a bigger residence in a regional or suburban ‘way of life’ space,” James provides.
“There have all the time been shifting traits within the sizes and types of houses over the previous decade and COVID-19 is throwing one other factor into the combo.”
Now could be the time to take motion and set your self for the alternatives that can current themselves because the market strikes on
If you happen to’re questioning what’s forward for property you aren’t alone.
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