Confidence had returned to the Australian residential market heading into 2020 spurred on by rising wealth, low interest rates and a limited number of new properties being built. These drivers are encouraging market recovery following the COVID-19 pandemic, subsequent lockdowns, as well as state and international border closures.
Lockdown has certainly allowed buyers to reflect on what they want in the future. At this time, Knight Frank Research surveyed our global clients to understand how the pandemic was having an impact on residential buyers’ attitudes.
A quarter are more likely to relocate over the next 12 months as a result of the pandemic with 40% buying a property in the same location. One third will be to a different country – Australia was fourth most desirable – attracted to the quality of life, stable currency and world class education. A quarter will be
elsewhere, but in the same country.
Upgrading the family’s residence will be the top reason for purchasing a new home in the future, followed by improved access to quality healthcare. Other reasons listed were a new holiday home in the sun, business or employment reasons and downsizing.
Almost half of the respondents said they’re more likely to buy a detached family home than they were prior to the pandemic – favouring waterfront and rural homes.
Interestingly, demand for apartments has remained largely static with 52% of respondents stating their attitude to apartment living has remained the same.
Partner & Head of Residential Research
Knight Frank Australia