Key takeaways
A lot of predictions have been made about our property market.
With its highs and lows, many are wondering whether it will ever bounce back.
Social commentator Bernard Salt believes that property owners and investors should feel optimistic about the future of property in Australia.
Australia's economy is among the wealthiest in the world.
Resumption of immigration plays an important role
Millenials and retiring baby boomers will shape our housing markets
A lot of predictions have been made about our property market.
With its highs and lows, many are wondering whether it will ever bounce back.
Well, social commentator Bernard Salt recently said at the AltX platform event that property owners and investors should feel optimistic about the future of property in Australia.
And here are the reasons why.
Australia's economy is among the wealthiest in the world
According to Salt, when comparing the nation's economy to the rest of the world, it is amongst the wealthiest per capita.
And our money is being spent on property.
He further explained:
"It should be no surprise that Australians are obsessed with property, because we’ve been doing it effectively for 80 years since the last war.
We’ve had a hiatus over the last two years, but the numbers are roaring back.”
Resumption of immigration plays an important role
The resumption of immigration to pre-pandemic levels will inject a high level of demand into the property market over the next five years, in both owner-occupier and investment sectors.
Salt commented:
"The already tight rental market is likely to be bolstered by an anticipated influx of students, especially from China.
With newly arrived migrants often looking to showcase their success and wealth by buying a home.
We will see an increased demand in the owner-occupier market."
Millenials and retiring baby boomers
While immigration is one of the main factors to power the rental and owner-occupier markets in the near future, it’s not the only one.
Middle-aged millennials and retiring baby boomers are also likely to encourage growth in lifestyle properties outside the major cities.
Salt said:
"In the 1950s, the average lifespan was 69 years, and the average retirement age was 65.
So, you’d expect to have four years in retirement before you dropped dead.
Now the average life expectancy is 84, which is almost 20 years in retirement.
Our lifecycle has been reinvented to introduce a lifestyle stage.
And with a lifestyle stage, comes a demand for lifestyle property."
It is expected that in the next 10 years, we will also see millennials hitting a new life stage as they reach their forties and start to have families.
Of course, this would likely prompt a move out of cities in search of a backyard and larger home to suit their changing needs.
Salt further said:
"The minimalist inner-city apartment will no longer cut it.
We’re about to see five and a half million people pass from the single apartment stage into needing a lifestyle house.
This lifestyle house is likely to include a “zoom room,” as millennials embrace the post-pandemic shift to working from home."
