What's on your Wishlist?

2020 has brought many changes and challenges, but in the property market I’ve noticed a distinct shift in buyer preferences over the past few years that has markedly shifted up a gear in recent months.

Shifts in housing trends usually happen gradually. Take the garage, for example. What began as a space for the family car in the back corner of the yard then moved alongside the home with a carport annex. Over time, the carport became a garage and then moved under the roofline, now having internal access to the home. This change took decades.

The impact of the sudden and rapid change in how we live and work in 2020 has hit fast-forward on some trends that were beginning to emerge in recent years. 

Buyers, generally speaking, are becoming less concerned with location in relation to the CBD (or Civic, for those who know the Canberra lingo) and are placing greater emphasis on the suburb itself, its facilities and ability to provide a wholistic lifestyle. This shift towards lifestyle locations is a trend that has been emerging over recent years and with the change in our work patterns I’ve noticed it really come to the fore in 2020.

As work decentralises and our shopping habits too move online, buyers are far less concerned with the daily commute as it may now only be a couple of days a week or every other week of being present in the office. A growing number of buyers are considering semi-rural properties on the outskirts of Canberra – properties on smaller acreages with a 30-minute or less travel time to Canberra are increasingly popular. Not only rural homes, but suburbs that offer that elusive combination of walking distance to highly regarded schools, thriving suburban shops with a well-stocked supermarket, quality locally roasted caffeine and a watering hole for catching up with friends. Bonus points for desirable services within 1km too; nature trails for exercise, fitness studios and salons all up the ante, too.

I’ve noticed that the combination of what’s within the community, rather than where it is in relation to the external factors are what an increasing number of buyers are willing to pay a premium for.

Now don’t get me wrong, because distance is still a consideration. It’s all relative though; if you’re travelling into the commercial hubs far less often these days, then being 30 minutes away rather than 10 from work isn’t such a big deal anymore. We’re still pretty spoiled for peak hour when it comes to Canberra as a whole. And with work decentralising to the ‘burbs for many Canberrans, are there going to be fewer cars on the roads in any case, further decreasing peak travel times? Plus, opening up to different suburbs allows buyers to get far greater value for money when looking at what their budget can secure.

A home that can provide a comfortable working environment within its boundaries together with a location that invites getting out into the world for a stroll to the shops to connect over a coffee, or some exercise to break up the day is what many of my clients who work from home part- or full-time have been seeking.

While natural light has always been high on buyers’ wishlists, it’s now front and centre. If the home is where you’ll spend the majority of your time then a poor orientation or outlook just isn’t going to cut it. Sunlight, modern heating and cooling systems, double-glazing, solar plus storage and an inviting outdoor area are things I’m seeing on many buyer briefs. Good indoor-outdoor flow, a sunny spot outside with space with a veggie patch, room for some suburban chooks and quality neighbours in a safe community are elements that buyers are willing to stretch the budget for. 

Savvy buyers are looking to add an insulated, fully decked-out backyard studio to flexibly accommodate changing needs. What may be a home office for now could transform to a guest suite for the young adult trying to save for their foot on the property ladder in years to come. Or the older parent who still wants their independence while being close at hand. It makes sense, both financially and emotionally, for many buyers and they’re after average-to-larger suburban blocks for these reasons.

Home this year, and perhaps for the future (I don’t want to use that phrase ‘new normal’ but now I’ve gone and done it anyway - forgive me), needs to serve many masters. What used to be our place of relaxation after a long day is now also required to transform into an ergonomic workplace – a little laptop on the dining room table isn’t going to cut it. The phrase “home office” is one I’ve written about before and it’s certainly a search phrase on the rise across property platforms from what I’ve heard. Home is no longer just a place of after-hours refuge; it requires fast internet connectivity for smooth video conferencing while someone else in the home is also streaming their own content simultaneously. Multiple living spaces are a minimum for those with more than one person working from home. Working from home bring a different set of challenges and for it to work over the longer term, work needs its own space if we’re to manage this shift from work to rest and play without harming our ability to switch off. We know it’s not good to work from bed, we know it’s not great to work while hunched on the sofa. But unless there’s a viable alternative it’s what happens in reality! 

These conflicting usage purposes have pushed many families to the point of moving home – however many families who are residing in these larger family homes haven’t been moving out! Baby boomers leaving the family home have given some reprieve to the supply issue however with quality aged care facilities light on, many older Canberrans have been staying on in the familiar family home. This bottleneck of supply and demand has created price pressure and the upsizer market segment has carried, I believe, the bulk of the price growth in Canberra over the past 9 months. Professionals in their prime earning years who are secure in their jobs, short on time and after a solution have been willing to pay more. Often significantly more, as we’ve seen from almost 20 suburb records broken across Canberra in 2020. But that’s another article for another day.

So how does all of this factor into your next purchase? Maybe not at all, but if you’re looking to buy with the end in mind or invest somewhere that may outperform the market then perhaps take a moment to pause and reflect on this demographic shift. It could change the emphasis you place on different characteristics, too.