Post-pandemic priorities of Aussie home owners revealed
Preference for working-from-home spaces has increased, with Aussies more likely to buy a home that boasts a designated office area.
COVID-19 has changed home-buyer preferences, with Aussies showing growing interest towards larger, detached dwellings, with less focus on proximity to the city.
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According to a fresh research paper from ANZ and statistics from HIA Economics, of the 44 per cent of builders who noticed a change in home-buying preferences, over 45 per cent said the change was instigated by an increasing interest in home offices or study nooks.
The big four bank explained that the changing preferences are likely a result of the increase in home-based working following the pandemic lockdown conditions, as well as a heightened appreciation for more space at home.
In fact, in the year to January, total approvals outside capital cities were up 41 per cent compared with capital cities, where growth stood at 11 per cent.
Overall, ANZ is expecting growth in housing construction of close to 12 per cent in 2021, before activity brought forward by government incentives dries up.
While a decline in activity is expected in 2022, it is predicted to be “modest” given the ongoing low interest rates, as well as remaining government support.
As for the remaining structural trends coming out of the pandemic, of the 44 per cent of builders noting a buyer shift, just under 30 per cent said buyers now prefer additional living spaces, while 22 per cent said a stronger preference for suburban living was witnessed. Surprisingly, less than 5 per cent noted a preference for regional living.
As for overall market growth, ANZ tipped that a combination of strong demand and cheap credit will continue to drive the housing market in 2021, with major cities set to grow by as much as 17 per cent.
“Buyers are taking advantage of historically low interest rates, particularly fixed rates, as well as various government support programs,” ANZ’s senior economist, Felicity Emmett, said.
“First home buyers are also benefiting from government support in the form of first home owner grants and reduced stamp duty,” Ms Emmett noted.
However, this strong growth is predicted to slow post June.
“The first half of 2021 is likely to be stronger than the second half. By June, we expect prices to be rising at a more moderate pace given the end of government programs like JobKeeper and HomeBuilder, and a lift in fixed mortgage rates,” she concluded.