How did you get to work today?
If you’re like the majority of Australian you drove yourself to work, and if not, you went on public transport.
It is said that as cities get bigger, particularly over 5 million people (Sydney already has over 5.5 million people and Melbourne ‘s population has topped the 5 million mark) it becomes harder to get around them, meaning they tend to become less “liveable.”
Just look at all the big overseas cities and you’ll find that properties with a high “walk score” increase in value more.
Walking distance to transport, shops and the café lifestyle is one the strongest trends attracting buyers and tenants.
Similarly, as our cities grow, proximity to public transport is going to become more and more important in determining property price growth.
The following chart complied from the latest census data by the demographers at id.com.au shows that on census day 2016, 61.5% of people drove themselves to work in their own car.
What it doesn’t show is how much longer that commute is today than it was a decade ago, particularly in Melbourne and Sydney.
This is partly because of increased traffic congestion, but also because much of our population growth has been in the new outer suburbs, while most of the higher paying jobs are still in the economic hubs close to the centre of our cities.
As you can see from the following graph from id.com.au more and more of us are using a car to drive to work
And as our roads became congested more and more of us will have resorted to using public transport, particularly trains.
The latest census data revealed that the number of people using the train to get to work increased by 22% from 6.3% to 7.2% over the last 4 years.
- Also read:Here’s how to avoid these 12 common reasons property investors fail to build a Multi Million Dollar Property Portfolio
- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Sydney property market forecast for 2024
- Also read:Boom to bust: What makes property prices rise and fall
- Also read:This week’s Australian Property Market Update – Latest Data, State by State November 28th, 2023
Not surprisingly Melbourne and Sydney combined made up 97% of this increase in train use.
Sydney added 61% (84,000) of the total Australian increase in train users train and today 16.2% of Sydneysiders take a train to work.
In Melbourne 11.5% of all trips to work were by train.
The census also showed that in the last 10 years, Melbourne had close to a 70% increase in train users and about 50% more tram users.
Interestingly the percentage of people using Public Transport barely changed over the last decade in other capital cities. This will probably change over time as these cities become more populous.
As our cities grow and the commute to work by car becomes more arduous, people will pay a premium to live closer to the CBD — trading space (big back yards) for place (living in convenient locations).
They will prefer to trade their backyards for balconies and courtyards rather than spending hours travelling to and from work.
At the same time others will pay a premium to be close to (but not too close to) public transport, particularly in our 2 big capital cities — Melbourne and Sydney.
Let my team and I help you because at this stage correct property selection is even more important than ever, as only selected sectors of the market are likely to outperform.
Why not get the independent team of property strategists and buyers' agents at Metropole to help level the playing field for you?
We help our clients grow, protect and pass on their wealth through a range of services including:
- Strategic property advice. - Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! Click here to learn more
- Buyer's agency - As Australia's most trusted buyers’ agents we've been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective - that's something money just can't buy. We'll help you find your next home or an investment grade property. Click here to learn how we can help you.
- Wealth Advisory - We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.