Will this devastate regional towns?

Discussion in 'Property Market Economics' started by MTR, 6th Jul, 2020.

Join Australia's most dynamic and respected property investment community
Tags:
  1. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,859
    Location:
    My World
  2. Cousinit

    Cousinit Well-Known Member

    Joined:
    6th Aug, 2017
    Posts:
    1,035
    Location:
    Victoria
    Regional towns in Victoria are pretty resilient as a whole. Places like Geelong, Ballarat, Bendigo, Warrnambool and lots of other places that are smaller centres have pretty good prospects in the longer term IMO.
     
    sqe, Lions4Eva, cberg86 and 1 other person like this.
  3. cberg86

    cberg86 Active Member

    Joined:
    4th Mar, 2019
    Posts:
    35
    Location:
    Townsville
    I think the border communities will have a tough go of it over the coming 12 months.

    My thoughts are if you can work remotely(and a lot of office jobs have been shown they don’t need an expensive office to work) then I’d think this might open up people’s minds to the possibility of working and living elsewhere other than a big capital city - this could swing things towards regionals a little bit.

    Hard to tell at the moment, know more in 12 months time as always.
     
    MTR and albanga like this.
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,357
    Location:
    Perth
    I don't think it will be devastating at all. It will be a hassle, yes, but life will go on.

    People at border towns have had to deal with their uniqueness for many years. They will be given exemptions for work, healthcare and essential services to go over the border as they need.

    For the other regional towns I don't see any difference besides tourism which isn't really a unique problem and has been ongoing. They may well actually see an increase in buying/selling activity as people consider treechanges to get out of the rat race (virus centres) and have the ability to work remotely.
     
    kierank, MTR, BuyersAgent and 5 others like this.
  5. Cousinit

    Cousinit Well-Known Member

    Joined:
    6th Aug, 2017
    Posts:
    1,035
    Location:
    Victoria
    Also, agriculture is very strong at the moment. Many sectors have made a bucket load of money this year. For example, cropping, beef , dairy and others have had record prices and an ok season as well.

    Vacancy rates are very low in most places at least south of the divide.
     
    sqe, Westie and charttv like this.
  6. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,701
    Location:
    Melbourne
    If you want to take any positive out of CV19 it’s just how much we don’t need proximity to the CBD. Life is not great at the moment but I think the post covid world is actually going to look a lot better than how we entered it.

    A huge part of that is giving back people’s time from the wasted daily commute and grind of CBD working. I know I’ve been a broken record on this topic (even well before CV19) but most people (myself included) spend a minimum 10 hours a week on the daily commute. Don’t get me wrong offices will still exist and I even want to go back to one at some capacity but I truly believe majority of city workers should be given the opportunity to work from home 60% of the time.

    So taking it back to the topic at hand. If you don’t need the CBD anymore OR should I say need it over 50% less than that massively opens up the attractiveness of regional.

    You get a better lifestyle, less grind, cheaper properties and in the new disease world, a smaller, safer community.

    I think regionals are in for a boost!
     
    sqe, datto, MTR and 10 others like this.
  7. euro73

    euro73 Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,129
    Location:
    The beautiful Hills District, Sydney Australia
    Tree change was already happening. COVID will accelerate it because it has forced businesses and employees to accept that working from home is in fact practical for many.... but only certain regionals will attract new residents. They need to be within a few hours drive of family, friends, kids, grandkids etc.... and they need to have a hospital, decent choice of schools , cafe's etc...
     
    Todd, kierank, MTR and 2 others like this.
  8. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    10,282
    Location:
    Sydney? Gold Coast?
    kierank, spludgey and MTR like this.
  9. BuyersAgent

    BuyersAgent Well-Known Member Business Member

    Joined:
    20th Jun, 2015
    Posts:
    1,401
    Location:
    Oz
    I was on the phone to a friend / small business owner yesterday who is based on the VIC side (Albury Wodonga region but out of town) and she has family members who live on 1 side, work on the other side, various NSW based friends whose cars are registered in VIC etc etc. She was mildly stressed about the paperwork and logistics, mainly that her son doesn't get "booked" for going to work across the border.

    However, assuming this will 'devastate' regional towns is ridiculous. Of course they will adapt, survive, do what they need to do to manage. What else would they do? Country folk in particular don't lie down or give up when things get hard. They get on with it and find a way.

    On a broader trend level I would suggest the trend to leave cities and tree change/sea change has accelerated this year for sure, it will most likely speed up and slow down each yr but continue over the next decade as use of technology continues to speed up/improve. For me the next big game-changer would be autonomous transport.

    My level of phone enquiry that starts with "I have been thinking of leaving Sydney for a few yrs but I think now is the time to pull the trigger..." has increased for sure in the last 3 months. That is no coincidence.
     
    sqe, TAJ, lost nomad and 5 others like this.
  10. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,348
    Location:
    Australia
    When one thinks like a coffin, everything looks like a nail?
     
    datto, Pier1, Ouga and 5 others like this.
  11. Westie

    Westie Well-Known Member

    Joined:
    19th Jun, 2017
    Posts:
    1,138
    Location:
    Melbourne
    Love your one-liners mate! I'm going to use this from now :)

    This rings true for a number of people on here.
     
    Last edited: 7th Jul, 2020
    datto likes this.
  12. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,859
    Location:
    My World
    So if we see a tree change, what regional areas do you expect to boom???

    I am still sitting on fence here until I see what happens with jobs. However, I can see the attraction here
     
  13. Cousinit

    Cousinit Well-Known Member

    Joined:
    6th Aug, 2017
    Posts:
    1,035
    Location:
    Victoria
    Regional cities with multiple growth drivers, infrastructure going in and not too many hours from a capital city.

    I know the Geelong and Ballarat areas pretty well as well as the rest of Western Victoria. Geelong as a whole has done very well over the last couple of years along with most of the towns within an hours drive. The whole Bellarine peninsular has now become quite pricey.
    I think it's proximity to Melbourne without the traffic and the crowds is rather attractive and I imagine it will continue to be.

    There has been a lot of growth around Ballarat and more likely IMO.
    Probably Bendigo too as well as lots of other smaller places. Is see opportunities all the time.
     
  14. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,421
    Location:
    Qld
    Easy to say if not living in the relatively small area most affected!

    Try waiting in a queue for over an hour, more at times - three hours last Friday when permit paperwork changed without notice!
    People missing appointments.
    A very pregnant woman who had to park in Tweed Heads and WALK across the border to her doctor in Coolangatta as the queue of cars to cross the border stretched for kilometres
    Having to allow at least an hour for a school run that should take 10 minutes...

    I don’t envy the people in Albury/Wodonga who have to cross the border daily.
     
  15. wilso8948

    wilso8948 Well-Known Member

    Joined:
    23rd Jan, 2018
    Posts:
    570
    Location:
    NSW/QLD
    So you've gone from saying "is this the death of regionals?" to "What regionals will boom?"..
     
    Ouga, Nicho, kierank and 1 other person like this.
  16. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,255
    Location:
    Sydney or NSW or Australia
    That's the old normal around here. 3km to next suburb but peak hour traffic is the killer.
     
  17. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,859
    Location:
    My World
    i am asking those who think it will boom and where? I have no idea whether it will or not, but I remain cautious in current environment

    i am also quoting a news article, so don’t take it personal.

    whats your view
     
  18. wilso8948

    wilso8948 Well-Known Member

    Joined:
    23rd Jan, 2018
    Posts:
    570
    Location:
    NSW/QLD
    Not taking anything personal.

     
    Ouga and kierank like this.
  19. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,348
    Location:
    Australia
    Looks like the article itself walked back on the coffin comment. The word cant be found. The ABC has an article saying it will be the final nail in the coffin of 'some businesses'.
     
    Last edited: 7th Jul, 2020
  20. Melbourne_guy

    Melbourne_guy Well-Known Member

    Joined:
    4th Aug, 2019
    Posts:
    499
    Location:
    Melbourne
    There is a potential upside and local cafes and small businesses could flourish...traffic that used to just ride on past will now have to stop and where better than the local cafe and overnight stopovers. Really though, it is too soon to determine the effects; ask again in a year.

    I'm pretty sure these rural places will survive because as a city dweller looking in, the rural places show tremendous resilience year in, year out. Why would this not be just another hurdle they'll overcome? Coronavirus loves high-density populated areas, where better than the country towns to live right now.