Pre-Covid, there were an estimated million or so Australians living overseas. That would have covered an array of lives, and incomes, from highly paid executives to budget travellers, as well as partners and children. It’s estimated that up to March this year, about 500,000 had returned home to Australia, with many looking for homes. Of course, they’re from all over Australia, but it seems fair to assume that 100,000 or so were NSW based.
Given the Covid climate, certainly a number would’ve headed back to non-city locations (like the Northern beaches) or rural areas. Others would’ve rented, or moved back home…But that leaves an estimated 500,000 still to come. This group of overseas Australians will have experienced the full force of Covid – and will be looking to get home safe and sound, as soon as borders open, travel becomes easier, and flights more predictable.
There is sure to be ongoing demand – even if Australian house prices are deemed over the top…some will be looking to resettle on the Northern Beaches in time for Christmas!
So the question is, will this impact on our market? I believe it will – as ‘home’ has never looked so good! It’s not the only factor to explain the rise in house prices, but it certainly should be taken into consideration as one of the major (and unforeseen) factors. Meanwhile, local vendors remain happy, in many cases selling for in excess of already ambitious prices.
The RBA has just – on Tuesday – confirmed that rates won’t rise for 3 years, and that they won’t be tightening lending criteria. The latter might be of concern – unfettered future lending will surely create a bubble? The conversation appears to be that the RBA wants low rates to help stimulate the economy, and is looking to Government to address rising house prices through tax and planning. Either way, the size of mortgages are soaring and it’s starting to create real concern over how society looks in the future; And locally, how many younger folk will ever be able to afford to stay here!
At least, though, rates locked in – can offer some protection for the future. In the end though, it’s always about supply and demand. We’re here to help you manage the market any way we can – so please don’t hesitate to call.
Here’s a take on it all by Rob Stokes, local resident and NSW Planning Minister:
Interesting article on basements too. It’s been a big thing in the UK for some years now, where inner-city space was at a premium and strict planning restrictions limited upward and sideways expansion. A quick tour of our Peninsula will reveal a number of multi-story homes being built, these will show a growing trend, even here, for massive basement developments. This has become increasingly fashionable in big cities all over the world, including Sydney…and now, the Northern Beaches too:
Locally, a little bit of excitement, for those of you who think Avalon might be getting too high profile…well, it’s still sleepy enough for one of Australia’s most wanted to slip under the radar for 3 decades..? Apparently, he was driven to hand himself in after finding it hard to find a place to call home…he’s not alone!