Moving cities or buying with mates: How the pandemic changed the property market

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on November 22, 2021 Fact Checked
Moving cities or buying with mates: How the pandemic changed the property market

New research has revealed that one in ten moved cities amid the pandemic, and a quarter of Aussies have considered buying with a ‘non-traditional’ partner.

A survey conducted by NAB of more than 2,000 Aussies, shows almost one in 10 moved because of COVID and are not planning to return.

The data also shows the factors that have become important to Australian homebuyers since the pandemic, with lifestyle being the top influence for 42% of respondents.

NAB Executive Home Ownership, Andy Kerr, said COVID-19 fundamentally changed how Australians purchase a home.

"The pandemic has impacted the lives of millions of Australians, particularly with how and where they want to live. What we have seen as a result is flexible working providing opportunities for people to live wherever they like and still work from home," Mr Kerr said.

"Without the daily commute, people are looking at the suburbs that haven’t been available in the past as a viable option to actually own a piece of land and build a house.

"Australians also clearly value lifestyle choices, having that work-life balance and being closer to family. Many of us want to live near a café or supermarket, be able to drop the kids off at school and have access to trains or trams."

Reasons for moving state

AUS NSW VIC QLD SA WA
For lifestyle 42% 44% 41% 47% 48% 31%
For family wellbeing 31% 31% 31% 19% 32% 42%
For employment 29% 30% 27% 32% 13% 25%
To be closer to family/friends 26% 28% 17% 26% 40% 37%
To avoid COVID restrictions 15% 16% 15% 13% 23% 17%
To avoid lockdowns 15% 13% 20% 14% 18% 10%
Moving my existing business 8% 7% 7% 10% 14% 8%
To start a new business 7% 12% 4% 4% 5% 6%
Other 9% 10% 7% 10% 4% 8%

Source: NAB

NAB MOVE.JPG

Source: NAB

"Australians have embraced flexible working during the past 18 months of the pandemic where you don’t need to be in a city office five days a week," Mr Kerr said.

"Queensland and South Australia have largely avoided lockdowns and restrictions and offer the lifestyle benefits unique to both states. Recent data has also shown us there is great value in buying property in both states where it might be cheaper than renting."

Buying property with mates

New research from CommBank has revealed that a quarter of Australians have considered buying property with a 'non-traditional' partner including parents, siblings or friends.

Two thirds of the 1,000 respondents indicated that affordability is the driving factor behind this consideration.

Commonwealth Bank’s Executive General Manager of Home Buying, Dr Michael Baumann, said while rising house prices build equity and help create wealth for incumbent owners, they also pose affordability challenges to first homebuyers looking to enter the market.

“Property Share is a little known feature among customers but with growing challenges around housing affordability, it may be appealing to customers who are looking for new ways to be able to afford a property given the current market conditions," Mr Baumann said.

CBA's research also highlighted the influence of FOMO (fear of missing out) on the market. 

While price is the biggest barrier to entry for potential property buyers, it is also the biggest incentive – more than 60% said they are worried about being priced out of the market, and 35% said they have a Fear of Missing Out (FOMO).

"Property Share is another way we are helping customers who are struggling to save for a deposit by enabling them to split the cost of buying a house with friends or family while keeping their finances, ownership and repayments separate," Mr Baumann said.

Also read: Should you buy a house with a friend or family member?


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Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

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VariableMore details
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VariableMore details
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Rates correct as of November 27, 2021. View disclaimer.



Image by Marcin Simonides via Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

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Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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