The country’s booming industry has become a hive for property buyers
The Australian property market has continued to thrive despite the challenging economic conditions brought on by the pandemic, according to a recent report by ABC Australia. The trend is particularly evident in major cities such as Sydney and Melbourne, where the number of million-dollar homes has increased by over 20 percent in the last year alone. Low-interest rates and a shortage of supply are contributing to rising prices, making it challenging for first-time buyers to enter the market.
The ever increasing demand for luxurious living has led to the construction of spectacular high-end properties that cater to buyers’ desires. People are willing to pay premium prices for homes that offer outdoor spaces with magnificent views. The amenities and location of these properties make them attractive to buyers who are looking to be near the city, but still prefer a sense of seclusion and nature.
In addition to million-dollar homes, the demand for short-stay accommodation has jumped by over 50 percent in the last year, as the cost of traditional long-term rentals continues to soar, according to realestate.com.au. Property owners are taking advantage of the trend by renting out their properties on Airbnb and other platforms. The rise of short-term rentals is reshaping the property landscape, providing affordable alternatives to hotels.
Richard Newling Ward, the director at design studio Bayleyward and a member of the PropertyGuru Asia Property Awards (Australia) judging panel, agreed, stating that short-stay accommodations have had a huge impact on the local property market.
“We are designing and scoping out almost exclusively Build to Rent (BTR) products for our bigger clients. From student accommodation, co-living, and longer lease models, this has been driven by multiple factors and demonstrates the market’s maturity. Investment returns have diminished, and the strata model is inefficient.
The community-driven BTR product speaks to a new generation of renters who value quality build and design devised to go the distance; better facilities, staff support, shared amenities, and shared utilities; work/collaborative spaces separate from their primary dwelling; as well as ease of use and flexibility of tenure.”
Foreign buyers and renters are also flocking to the Australian property market in droves, according to the recent PropTrack Overseas Search Report on realestate.com.au. The low Australian dollar, combined with the country’s stable political environment and high standard of living, make it an attractive destination for foreign investors. Data also uncovered that these foreign buyers are interested in luxury apartments with views, high-end amenities, and a sense of exclusivity.
The lifestyle exodus from major cities to regional areas has resulted in a surge of interest in Queensland’s top 10 regions, revealed realestate.com.au in a separate report. With more people looking for spacious homes with outdoor areas and easy access to nature, these regions are expected to benefit from the lifestyle trend in the coming years. This shift has led to the growth of the Australian property market and has reshaped the property landscape, while the top 10 regions are expected to attract people looking to escape the hustle and bustle of city life.
As the property market in Australia continues to thrive, it is not just the buyers that are taking note but also the investors. The growth of the property market provides investment opportunities for those looking to grow their portfolio. It is not just the high-end market that is seeing growth, but the rental market as well. The market provides opportunities for buyers, renters, and investors looking to make their mark on the Australian property market.
Among the developers that are looking to benefit from this are major Australian winners at the PropertyGuru Asia Property Awards Grand Final 2022, namely Spacious Group (Best Boutique Developer - Asia), SPG Land (Best Smart Building Development – Asia and Best Integrated Work From Home Development – Asia) for Paradiso Place, as well as Mayrin Group (Best Housing/Landed Architectural Design (Asia) for The Archwood Residences.
Witnessed any award-worthy residential, commercial, or industrial projects in Australia? Nominate them for the 6th annual PropertyGuru Asia Property Awards (Australia) on or before 4 August 2023.
Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].
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