Morgan Property Agents
0407371648
image

Part 3 - What's in store for 2020?

Wayne Morgan Posted on 28 Jan 2020

 

THE YEAR OF THE EVERYDAY AUSTRALIAN

It was a tale of two markets last year, pre and post-election. Leading up to the federal election, in May 2019, confidence had been dented by the banking royal commission and debate around proposed changes to negative gearing and capital gains tax concessions. These two factors, combined with tighter bank lending practices, saw buyers pull back from the market and property values decline. But what happened next surprised us...

Scroll down to read part 3 of our 3 part series for what's in store for 2020?

TREND # 3

THE REGIONAL RUSH

Despite recent price declines, median prices across Sydney and Melbourne remail elevate compared to other capital cities and regional centres. With prices in our two largest cities continuing to rise, 2020 will see the migration to regional areas accelerate once again.

 

 

More and more first time buyers, young

families and retirees will rule out

purchasing in a capital city. Instead, they

seize the opportunity to move into

regional markets as they can provide a

similar lifestyle to their preferred capital

city, but at a more affordable price. 

 

Looking beyond the city limits, therefore,

becomes a serious option for buyers

wanting to get more for their money. They

want to find a location where they can

enjoy the same lifestyle, without the

mortgage pressure that comes with

buying in a capital city. By making a move to a

regional area, these households will

allow themselves to purchase a home

without sacrificing their standard of living

comfortably. 

 

Someone living in Cronulla (Sydney) for

example, where the median house price

reaches nearly $1,905,000, could look into

buying in the Wollongong area, where the

median house price is almost three times

cheaper at $678,000.

 

The same way, whether work would be a

barrier or not, a move to the Gold Coast or

the Sunshine Coast could also make

sense. These regions offer the same

beachside lifestyle, but with a median

house price of respectively $627,500 and

$600,000.

 

Of course, changes in the way we live

contributed to an acceleration of the

regional rush, starting with the increased

flexibility and digitalisation of the

workplace. With more companies offering

flexible work arrangements such as part-

time opportunities, flexible hours or the

option to work from home, one of the

main barriers to moving out of the city

has now faded away. 


 

 

"By making a move

to a regional area,

these households

will allow themselves

to purchase a home

without sacrificing

their standard of

living comfortably".

Additionally, commutes will significantly

improve in the coming years. With its

2019/20 Federal Budget allocating $100

billion to infrastructure over 10 years, the

Australian Government showed its

intention to better connect major capital

cities with surrounding regional centres.

Spending will focus on several fast rail

projects, road safety initiatives, and

highway upgrades - the biggest

beneficiary being regional Australia. 

 

Geelong, for example, will benefit from the

upgrade of Avalon Airport, as well as the

$2 billion super-fast rail line to Melbourne.

Similar developments will significantly

improve commute times between

Brisbane and the Gold Coast (32 minutes,

instead of 74 today), Brisbane and the

Sunshine Coast, Sydney and Wollongong

or Sydney and Newcastle. Even if these

projects will take a few years to come to

life, they already contribute to making

regional areas even more attractive.

 

Thinking of making the move to a regional area?

The first step to finding out what you can buy is to see how much your home is worth and whether the best option is to sell, or rent it out. We can help you with this by providing both a sale and rental appraisal on your property in today's market. Simply click the 'Get your home's value' button below, fill in your details and we'll send a value report to help you decide where to move to next.

Contact Us
Copyright © 2019 - 2024 Morgan Property Agents, All Rights Reserved.

Privacy Policy | Powered by Eagle Software

Morgan Property Agents