Housing market landscapes in metropolitan? Post pandemics

Hi folks

Just want to throw some thoughts here. As we are all coping and fighting this global pandemics, some interesting observations regarding the market in metropolitans mainly in Sydney...

1. As work from home May have already become new norm, people are actually able to live further from CBD or other major employment hubs. I believe it’s a win-win. This will encourage developments in outer suburbs and price is more affordable while having the benefits of new infrastructure.
2. The first observation is only on houses. Apartment will be a different story... in my opinion is not that attractive for young families. If the renter demands dampened, given immigration and overseas student won’t be all back to the previous level, it leads to decline in price. Building itself always depreciates...
3. This may also plateau the price in some expensive suburbs which are still lacking good infrastructure but just because it’s closer to work. Of course, people will still buy into good school zones, being close to their relatives etc. However, the demand will be less if they can build a brand new house and not as concerned about commuting as before.

what are your thoughts?

 

For young people, work from home is less attractive. Even those with small children prefer an office environment. And the suburbs lack the bars etc that make the city so attractive in the first place.

 

There's an article in The Guardian about how things might play out.

'The reversal of gentrification': how Covid-19 could remake Australia's cities

The pandemic has brought in a long overdue shift to home working. Companies have resisted it for years, and it'll probably be hard to return to the previous status quo when this all blows over.

That said, the article highlights a few other factors: government might try to keep the CBD booming for economic or political reasons; the nature of offices could shift, the example being Atlassian's new HQ has more leisure facilities than is traditional; and the development pipeline will take several years to turn around.

 

Capital cities won't go away but my totally uneducated guess is that bigger homes on bigger land might be a bit more favored now, that is within 45 mins of the city. Lifestyle homes life acerages or regional seaside property. In Queensland some examples might be Brookfield, Pullenvale, Samford, Sunshine Coast and southern Gold Coast.

Not saying these will boom, but I think they'll do a lot better than they would have if you take away COVID.

The key thing is I think people will consider lifestyle a lot more.

This is why I'm personally relocating from Sydney to SE Queensland (IT industry, young family).

 

After 6+ months working from home....they'll need more and bigger office space in Victoria