Report Published: March 2018
The once highly predictable residential market has undergone significant changes, particularly over the last 20 years. Residential demand has become increasingly fragmented and the previous “one size fits all” policy adopted by stakeholders in the residential market has become outdated.
BIS Oxford Economics Emerging Trends in Residential Market Demand uses Census data from 1991 through to the latest 2016 Census results to quantify the demographic trends that are taking place among the different purchaser segments of the residential market, and the consequent impact they are having on the demand for different types of dwellings.
Questions answered by this report include:
- Which age groups will experience the greatest rate of household growth?
- Are younger households continuing to delay having children?
- Are households renting for longer? Are households increasingly opting for townhouses or apartments when they eventually buy or do they purchase houses?
- Do children remain in the family home for longer? Are 50+year old households still paying off their mortgage at a later age as a result?
- Are Retirees increasingly downsizing to smaller dwellings?
- How do the above trends differ across the cities?
Key demographic trends are provided across four main age cohorts:
- 20–34 year olds — Millennials
- 35–49 year olds — Generation X
- 50–64 year olds — Baby Boomers
- 65+ year olds — Retirees
Further breakdowns are often provided within these groups by five year age cohort. Separate data is included for Sydney, Melbourne, Brisbane, Perth and Adelaide.
The report combines the demographic and market trends over the past twenty-five years, presenting the implications for the residential market, and quantifying the expected future demand for different dwelling types across the capital cities. The information will highlight the segments of the market offering the greatest growth potential over the next decade and is an essential resource for forward-looking businesses to be on top of the upcoming residential market trends.
Built to get investors, inadequate for homeowners. The BIS Oxford Economics released a report on emerging trends in property https://lnkd.in/gxgS_iR and this paragraph says it all. For many years, I’ve talked about my worries with new apartments and this is one of the key reasons why. You see, young families over the coming years that cannot afford to get a house or townhouse in the inner rings, do not want to move out west and will not see the cheaply built new apartments designed to get investors as a viable option. To live in an apartment they will expect a much higher quality product to raise a family in and actually look at older apartments if they do. This means that the current explosion of high rise, will most likely only be suited to lower income families due to affordability and young uni students/singles/couples who want a cheap place to live. The problem here is investors will only buy if it provides a high yield, meaning prices stay low. Also low incomes can not borrow much from the bank to push prices up. This cycle will get worse. The more that are built, the less liveability and less families will want to live there. Property is about people, so understanding what people want is key to understanding what a good investment is hashtag#inadequate
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