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Have you considered that recent events could cause a complete reset for our property markets?
For many around the country, this period has been a time of reflection.
A time to reset goals and refocus on what is important, a chance to re-assess our priorities.
We are at the start of another property cycle, so it is important to understand what factors will drive people’s property choices moving forward.
The way people desire to live is changing and as an investor, you must understand this if you are looking to obtain above-average returns.
Here are my thoughts:
I have explained previously how I see the rules of property changing.
In short, the way we are choosing to live is changing.
Nowadays, priorities are shifting.
People are trading big backyards in outer areas for smaller courtyards or balconies as they search for a more convenient lifestyle.
While the trend for many retirees and baby boomers is to stay put.
Rather than the sea change or tree change that was predicted, they are favouring downsizing in their existing neighbourhood.
They want to be close to family, friends, their doctor and perhaps their favourite cafes and restaurant.
One thing I know many of our Melbourne friends have been missing is their “third place”
If our first place is home and our second place is work or the office, it has been the ability to go to a third place that was taken away.
It may be a favourite café, a gym or a place of worship and even local shops and pubs.
They have missed that feeling and connection to others, having an outlet to take a break from family or colleagues for a short period to reset.
A gym or exercise centre has been substituted for a favourite walking or cycling path with green space and fresh air.
So, all these features combined, will be a major requirement and will create huge demand moving forward.
These are all features of the 20-minute neighbourhood, that will be built around convenience.
The 20 Minute Neighbourhood
The State Government of Victoria has released a guide to the “20 Minute Neighbourhood” recently.
Their research suggests that an ideal neighbourhood would mean most facilities will be a 20 walk, cycle or drive away.
So, convenience and options will be the key.
While new neighbourhoods may adapt, they will not have as many choices or options that we see in our inner and middle ring suburbs.
Sure, they may build a Coles or a Woolworths, but they most likely will not have a Coles and a Woolworths and an Aldi or even an IGA.
They may also get a new bus stop or train line, but they will not have access to both a bus and a train and potentially a tram, ferry, or bike option to get around.
A coffee shop or restaurant or two will also be a must, but the choice of 10 or 15 different options will have considerably higher appeal.
Gastro breweries, boutique shops, art galleries and entertainment precincts will be the icing on the cake.
All at your doorstep – or at least no more than 20 minutes away
As the first place (accommodation type) gets smaller, demand for options and a third place will rise and people will be prepared to pay a premium to live in a great neighbourhood.
With no new land available, this type of precinct will be in very short supply.
The way people want to live will change in the new decade, so to must the way you look at property if you’re looking for properties and locations that will outperform the average with regards to capital growth and rental growth.
You will need to understand how people are choosing to live and what is important to them.
Substituting bigger houses for smaller accommodation will see a rise in demand for a great “third place”.
Convenience and being spoilt for choice will be highly sought after.
The more restaurants, cafes, transport options, exercise facilities and shopping facilities the better.
It will see demand soar in our inner and middle ring suburbs, but supply will remain very tight.
While you have the inside work on the locations, now you must find the right types of properties for this demographic.
Or you could always hire a professional to assist you.
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on
If you’re wondering what’s ahead for property you are not alone.
You can trust the team at Metropole to provide you with direction, guidance, and results.
In “interesting” times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.
If you’re looking at buying your next home or investment property here’s 4 ways we can help you:
- 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! This will give you direction, results and more certainty. Click here to learn more
- Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3.5 Billion 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.
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