“Really strong demand for property in outer suburbs and regional areas”: REA Group Economist Economist shares growing trend

And she’s not the only one noticing the trend: what other experts think

REA Group Economist Anne Flaherty spoke to Sky News on 24 April 2021. She explained “one of the biggest trends we’ve seen over the last year is an increase in demand for space. So buyers are looking for bigger houses on bigger blocks in more scenic locations.”

She shared that there’s been “really strong demand for properties in outer suburban and regional areas.”

These properties are selling at “record speed” — 3 or 4 times the speed they would have sold a year ago.

Even with restrictions easing, people are spending more time at home than in the past. They need more space, which explains the more purchases in 3BR homes — and less interest in 1 and 2 bedders.

Flaherty revealed that “the areas that are selling the fastest tend to be areas that are more scenic, so coastal or hinterland regions that are still relatively close enough to the city that it’s possible to commute in where there are good amenities.”

One particular group, retirees, are flocking to scenic areas, particularly Queensland. For instance, Sunshine Coast in Queensland.

It’s not just Flaherty that has noticed these migration trends — and it’s not just retirees that are moving. Co-Founder and Director at The Demographics Group, Simon Kuestenmacher spoke to Ross and Russel at 3AW about millennials:

“This millennial cohort that is finally reaching the family formation stage of the lifecycle, they are leaving Melbourne to Victoria, they’re also leaving from the inner suburbs to move to the outer suburbs, simply because they all of a sudden need affordable homes. This trend will definitely last,” he told Ross and Russel. (Read: Maxx exodus: Melburnians flee to the regions as Victoria records biggest population loss in 25 years)

Will this trend last?

There are some who expect this migration to be short-lived, and believe it was forced by the pandemic. They think people will return back to the city. However, reputable real estate analyst, Terry Ryder shares:

“It’s not about the pandemic, it’s about lifestyle, affordability and technology. And it’s not going away any time soon. So, across Australia, property markets are booming in sea change and hill change towns, as well as the smaller capital cities.” (Read: The Sydney and Melbourne exodus isn’t a flash in the pan)

What does this mean for you?

The trend presents 2 opportunities:

To provide homes to fellow Aussie families seeking a lifestyle change.
To get ahead for your own family with a solid, long-term property investment.

“The areas that are selling the fastest tend to be areas that are more scenic, so coastal or hinterland regions that are still relatively close enough to the city that it’s possible to commute in where there are good amenities.”