The Federal Government has earmarked budget promises encouraging more first home buyer initiatives – music to our ears as FHBs are our most active buyers. Stay tuned for the announcements.

There is so much talk regarding interest rates and what impact that may have on the property market. Not to brush over interest rate increases and their impact (spoiler alert, there will be an impact), but rates aren’t the only thing that stimulates our market. There are a host of key economic indicators that are going to impact our market for the medium and long term – and projections are sound.

In the medium term as our borders open, one of the most significant impacts on our market is net immigration. Australia is seen as a very safe bet for overseas investors and people looking to migrate. In fact, according to the IMF, Australia is the 13th largest economy in the world, eclipsing Spain and falling just short of Brazil and Russia (in USD bn’s). According to the Australian federal budget for 2021, they predict a net decrease in immigration - however, the forecast for 2022 and 2023 and beyond is a significant uplift in foreigners returning to Australia.

Overseas buyers flock to highly populated and dense cities such as Melbourne, Sydney and Brisbane. We all know that Melbourne is the hub for universities, lifestyle and major events I'm incredibly optimistic about the Melbourne property market and what impact immigration will have on our property economy in the next 3 to 10 years. Also, Melbourne, Docklands & Southbank is within reach as more and more people have been priced out of the volcano-hot market that is Sydney.

In our experience, the most active local generation buying apartments are Millennials (closely followed by Gen X’).

Let me break it down -   

Millennials:

- Our current buyer

- Born 1983 – 2001

- Aged 21-39

- Represent 26% of the Australian Population

- In the next 5+ years typically head towards the family stage of life and the ‘full-on family home’.

According to The Demographics Group – we’re transitioning to a time where the next buyer is going to be Generation Z! Get ready for that, these are people that were born from the year 2001 onwards it sounds amazing to consider that someone born after the year 2000 is going to be buying their first property but the first Generation Z’s are already 21 years old!

Strap in – the city is getting younger (or maybe I’m getting older!).