Australians on the move as housing affordability worsens
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Australians on the move as housing affordability worsens

Analysts say more people may leave capital cities for the regions in 2024 as the housing crisis deepens

By Bronwyn Allen
Fri, Dec 1, 2023 9:49amGrey Clock 3 min

Frustrated aspiring home buyers and renters fed up with high runaway prices in certain markets may resort to moving interstate in 2024, according to analysts. In the latest Housing Affordability Report released by ANZ and CoreLogic, analysts say housing affordability has worsened due to rising migration and interest rates on top of longer-term factors such as governments not building enough social and affordable housing to keep up with demand.

There is no quick and easy supply response to rising rents and home values,” according to the report. As a result, 2024 may see more internal migration of prospective first home buyers and renters to markets with relatively low price points.” ANZ and CoreLogic point to data tracking historical net internal migration trends against the current median value of dwellings. Internal migration was higher across areas with relatively low median values at that time,” the data shows.

During the pandemic, internal migration patterns changed as more people left Sydney and Melbourne, in particular, and relocated to the regions. Being able to work from home enabled many families to move to lower-cost markets and attain a better lifestyle. Queensland – especially the Gold Coast and Sunshine Coast, along with regional NSW and Victoria — were key beneficiaries of this trend. In 2022, NSW lost 31,560 residents and Victoria lost 9,955 due to net internal migration, while Queensland gained 34,545 residents, according to the Australian Bureau of Statistics (ABS).

The ANZ/CoreLogic report also predicts that more Australians will choose to share a property to save money in today’s cost-of-living crisis. Multi-generational living among families is a rising trend among home owners, and in the rental market, there is surging demand for share houses to make the rent more affordable for individuals. This represents a reversal of pandemic trends, say the analysts.

In addition to changing location preferences, there could also be some preference shifts around the number of people sharing a household in 2024. The pandemic period saw a notable drop in average household size from 2.55 people per household to 2.49 as of 2023. This may have reflected greater demand for space as more time was spent at home, a temporary rise in available rentals at the very start of the pandemic, and high levels of fiscal stimulus supporting incomes. However, this trend could reverse as more people take up share housing to alleviate housing costs.

The interest rate hiking cycle is likely coming to an end, which will ease pressure on mortgage serviceability, but the analysts note that a steady or falling cash rate typically results in upward pressure on prices. Additionally, the current drop-off in new dwelling approvals may hinder housing supply growth for some time. Ultimately, improved housing affordability in the long term is likely to depend on deliberate initiatives to increase housing supply, rather than relying on a temporary downswing in prices or cyclical reduction in interest rates.

The report also finds that regional markets are not as affordable as they used to be following the pandemic boom. As of October, regional home values are 44 percent higher than at the start of COVID compared to capital city prices being 26 percent higher.

The report also notes a widening price gap between Sydney and Melbourne, with Melbourne the only capital city where affordability for buyers has improved over the past five years.

More modest dwelling value increases in Melbourne, which has led to Melbourne being more affordable relative to Sydney over time, comes down to more supply of dwellings over the past 15 years,” the report states. “ABS building activity data shows there were around 850,000 dwelling completions across Victoria in the 15 years to June 2023, which is 21% higher than in NSW over the same period.”



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11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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It’s a slam dunk as a covetable $2m KDR site complete with basketball court hits the market in the Hills District

The ball is in the buyer’s court with this knockdown/rebuild opportunity

By KANEBRIDGE NEWS
Tue, Apr 18, 2023 2 min

Glenhaven in Sydney’s Hills District is one of those areas that locals tend to keep to themselves. Leafy with large blocks on offer, the suburb takes its name from its valley location, with the northern end originally known as the Glen and the southern end called the Haven. 

En route from Parramatta to the Hunter, Glenhaven has become an ideal place for growing families in search of a little more space, or even room to house several generations under one roof.

The challenge is finding properties that tick all the right boxes.

As demand for trades and supply chain issues continue to ease, now could be the right time for a knockdown/rebuild project for would-be buyers looking to create their dream home.

Fairmont Homes specialises in knockdown/rebuild projects in Sydney. General manager at Fairmont Homes, Daniel Logue, said there are key features to look for when choosing a knockdown/rebuild site.

“The key items we look for are the site falling to the street, not to the rear, to help with stormwater drainage as well as access to the site,” he said. “Neighbouring property front setbacks are also important. In some older areas, the older houses are set closer to the street, meaning your new home will have to be set to suit.

“Value for money and the return on the end sale price of the home is another issue.”

If possible, he said designing a home that meets the criteria of the Complying Development legislation will speed up approvals considerably.

While suitable knockdown/rebuild sites can be hard to find in Glenhaven, there are still hidden opportunities if you know where to look.

One block at 158 Gilbert Road, Glenhaven is ideally suited for rejuvenation. With almost 850sqm to play with, it slopes down to the street and sits between neighbouring properties that have already been stylishly updated.

 

 

An existing basketball court at the rear could provide the perfect teen backdrop to a family home, or it could make way for a larger house with landscaped gardens and pool. Alternatively, it could be the perfect position for a cabana or granny flat to serve as in-law accommodation or a source of secondary income.

With recent sales of completed homes in nearby streets reaching well above $5 million, it’s a great opportunity to make a slam dunk of a buy into one of Sydney’s best kept secrets.

Address: 158 Gilbert Road, Glenhaven
Price guide: $1.8 million
Inspection: By appointment only

 

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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