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Mobility is increasing and people are
moving more frequently, McCrindle says.
Michael Yardney of Metropole Property
Strategists thinks in even a decade or
two our cities will be bigger and more
congested. More people will want to work
from home and those who can’t will live
no further than 20 minutes from their
workplace, he believes.
“Many of the new high-rise buildings
will be mixed-use combining apartments,
shops and offices. We’ll live closer to each
other, we’ll connect in digital spaces as
much as in person, and instead of battling
the traffic we’ll stick closer to home.”
Tenants will be prepared to accept less
space to live in a better location. They’ll
pay a premium to live close to the action
and trade a yard for a park.
“Rather than entertain at home, they’ll
meet friends in bars and restaurants.”
Despite the shift towards city living,
Bolleter believes suburbia will still exist in
decades to come, but it’ll become more
efficient in terms of services, facilities,
transport and connectivity to major hubs.
“It needs to. Suburbs will have to work
much harder in the future as people’s
Another big demographic shift is in the
area of overseas migration. While 40 per
cent of population growth is currently
from “natural increases”, the rest is from
overseas arrivals settling on our shores,
he says. That’s expected to remain strong
and grow in coming decades.
When new arrivals settle in Australia,
they tend to gravitate towards middle and
outer suburbs in capital cities, close to
shopping amenities, sought-after services
and transport links.
“They also look for connections to their
community. They favour built up hubs
and tend to be driven by affordability, so
they’ll rent initially,” McCrindle says.
Given the boom in migration and the
living habits of this demographic, he
tips they’ll soon become one of the most
dominant rental groups. Following closely
behind will be young Australians.
Unlike their parents and grandparents,
young Australians are putting off buying
a home in favour of the flexibility that
renting offers. Affordability constraints
also play a part, he says.
“Their motivation to rent is driven by
lifestyle. They want to be in the city areas
close to education or work options. They
like the transport and being near facilities.
“New arrivals to Australia are different.
They rent because that’s what they can
afford, but they certainly aspire to own
property as soon as they can.”
¿ MEDIAN PRICES IN 10 YEARS
The fundamental driver of housing market
movement is the supply and demand
balance, there’s no doubt, however there
are other factors at play.
Andrew Wilson is a senior economist
with Australian Property Monitors and
says price growth follows increases in
incomes over the medium to long-term.
“Analysis consistently reveals that the
proportion of average disposable income
required to finance the average home
loan has remained relatively stable for
decades,” Wilson explains.
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FUTURE OF HOUSING \\ FEATURE
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