Last week we looked at how the great Australian dream of owning a home has become vastly redefined. This week we continue to explore why these new trends are coming about… from changing lifestyle demands to a shift in mindset, and much more!

Why the change? When you think about it, this strong shift to this new “vertical community” – where people are opting for apartments over large suburban blocks - makes complete sense!

Let us explore some of the most viable reasons for this new shift…

1.     Less is more

Today we live in a time-poor society that is being driven by the beauty of minimalism. Many people these days are working much harder than ever before and no longer have the time to spend on the upkeep of a big yard or the maintenance of a large suburban home for that matter.

For many, it really is a simple case of “less is more”.

2.     House prices on the up

Housing prices are also a big contributing factor. Recently on Channel Nine’s, Weekend Today, social researcher, MarkMcCrindle, says the profile of the current “average” Australian looks somewhat like this:

Looking at this, you can see the challenge is that the average house is about 10 times the average annual earnings. Whereas, rewind four decades ago and house prices were only about five times the average annual income –clearly house prices are growing faster than wages.

3.     A shift in mindset

In a recent article by the Huffington Post, McCrindle also talks about how Australians were also getting more comfortable with the idea of living in a unit; describing this shift in mindset as a “massive attitudinal change”.

"(An apartment) used to be for people who couldn't maybe afford that traditional Aussie dream, the detached house, or older people downsizing or young people renting but that's not the case now," he said.

"They're choosing it for lifestyle reasons... the unit developments now largely are taking place where there are built environments around cafe culture and close to art, restaurants and walkable communities."

He said another attraction in many new developments was that residents "don't need to rely on a car and there's good access to public transport".

 He said the shift was also being seen among families with children, who were taking advantage of unit developments designed to cater to kids. McCrindle even mentions the fact that some high-profile developers today are now even putting child care centres into their developments to help attract families to living in the CBD space.

So with population growth, a love for minimalism, higher property prices and an increased desire for inner-city lifestyle… it is no wonder we are seeing a surge in families trading traditional suburban life for high density lifestyle, or the “vertical community” as McCrindle puts it.

Furthermore, recent BIS Shrapnel research shows that a record 19,450 apartment dwellings were commenced in Sydney in 2015/15; this number over double the reported figure of 8,300 in 2010/11. It is a similar story in Brisbane, where apartment developments have also surged.

With more Australians opting to live in apartments closer to the café culture and with rent numbers on the up from a quarter to a third of Australians – as we saw last week. The question is why? What are the benefit to renting over committing to a mortgage?

Why are more people opting to rent?

One of the main factors we are seeing derived from these current trends is this notion that Australians want to travel more freely and move house more often – renting a property allows them to do that.

McCrindle says that renting allows Australians to live in an area that they perhaps could not afford to buy in.

“It’s just this ability to lock up and leave that place and travel and spend their money, not on a big mortgage but on other lifestyle pursuits.”

Does that mean that people have given up on the Australian dream of owning a quarter-acre block… opting for convenience and freedom over space and long-term commitment?

Truth be told, about 30 per cent of Australians are renters, which is actually a higher percentage than those who have actually paid off their mortgage. But in actual fact, with these new trends we are starting to also see a new breed of investor.

Introducing the rent-vestor

A lot of people are getting good affordability out of renting… they are called rent-vestors. These are people who are renting but have perhaps bought a house on the outskirts of town.

While it may not be suitable for them to live there but they still get the asset-appreciation on that property and, meanwhile, they live where they want to live so enjoy the lifestyle benefits in the process.

As you can see it is evident that this new growing trend of enjoying the urban lifestyle and the freedom to come and go as you please, seems to be the way our property market is shifting. This is great for CBD apartments and the investors that buy them.

When it comes to your next property purchase, this new wave of living is certainly food for thought. Maybe it is time to trade up that quarter block and buy an apartment in the heart of Brisbane? Live there or rent it out… either way, it is clearly a win-win!

To take advantage of this new trending city lifestyle, contact HSBP on 0419 782 133 - the experts in Brisbane’s CBD property market!

For more information on Mark McCrindle or to visit his website, go to  http://mccrindle.com.au. 

Owning a family home with the big quarter-acre block has always been considered the great Australian dream. However, with an increasing number ofpeople now opting to rent, could it be that Aussies are starting to forge a new dream? - Themortgage-freekind that focuses on lifestyle, rather than putting every spare hard-earned dollar into a home loan.

Weekend Today recently interviewed social researcher Mark McCrindle on how this very notion of the great old Australian dream is being redefined thanks to a major shift in housing trends, such as downsizing and a desire to live right in the heart of the CBD amongst the urban sprawl of trendy cafés and the hottest restaurants.

In keeping with the recent television report, let us take a look at three of the most major new trends that are swiftly being adopted right across Australia - 

1. The new vertical community 

According to McCrindle about three in four Australians live in a detached home - so that has traditionally been the Aussie dream. Then you have about 14 per cent who live in apartments and 10 per cent in townhouses. 

However, he says that we are starting to see a strong shift in these numbers; with a quarter of Australians now living in medium to high density housing. 

“At the moment if you look at new housing approvals, it's one in three, so it has gone up. So we are starting to get more densified; with an increase in vertical communities compared to the more traditional horizontal ones, and that’s where we are headed in the future,” says McCrindle. 

2. Downsizing is the next big thing

In the Today report, McCrindle also talks about this idea that people want to downsize. He says that this next generation starting homes don’t need a big garage to store their stuff. They don’t need two cars. They are happy to ride share and get by on one car and be closer to public transport.” 

He refers to this as the ‘walkable community’.

“Partly because of the cost of a big four-bedroom home in the suburbs, people are wanting to downsize to something a little smaller and that’s why we are starting to see the growth of units and apartments right across Australia.”

3. Inner suburban lifestyle

The great Aussie dream used to be about the family home, the picket fence and the quarter-acre block but things have changed. McCrindle says Aussies are choosing a cosmopolitan lifestyle instead of the alternative of living further out in the suburbs. Nowadays families want the balcony with a view, the local café that is just a stone’s throw away and the convenience of public transport. 

In terms of real estate, there are three big winners from these growing trends – CBDs, apartments and investors!With an increase in the so-called ‘vertical community’ and a positive push for downsizing – surely the obvious choice for this new generation of buyers are CBD apartments? 

Next week we will delve into topic this a little deeper and focus on the ‘who’, ‘what’ and ‘why’ of these latest property trends which seem to be turning the real estate market on its head and changing the way we view the good old Australian dream.

If you want access to one of the best urban-city lifestyle that Australia has to offer, you simply cannot go past purchasing property within the Brisbane CBD. For experts in the local Brisbane market, contact the professional team at HSBP on 0419 782 133.

For more information on Mark McCrindle or to visit his website, go to  http://mccrindle.com.au.

Recent data from realestate.com.au shows that Queenslanders on the hunt for an apartment are not looking for a private library (3%) or even a private cinema (1%) when purchasing.

They are however, very interested in their own parking space with a whopping 77% reporting this as a desirable feature. Predictably, balconies (66%) ducted heating and cooling (50%) and high-speed Internet & TV (49%) are also qualities that ranked high on the priority list.  

These findings are an interesting snapshot of the mindset of buyers in the market for a unit. This consumer research shows that Queenslander’s are not lured by mod cons; the preference is to acquire a self-contained space with room for entertaining. Outdoor entertainment spaces are desirable attribute for 42% of respondents, with 26% reporting landscaped gardens & BBQ’s are a ‘must have’ with swimming pools coming in at a close third of 23%.  

Some of the suburbs that recorded the highest number of searches in Brisbane were Newstead, Kangaroo Point and the ever performing - Brisbane CBD. There is no surprise there, as inner–city abodes consistently attract more interest due to their premium locations.

NOTE

Top 10 Suburbs

1.  West End
2.  South Brisbane
3.  Broadbeach
4.  Newstead
5.  Southport
6.  Kangaroo Point
7.  Brisbane City
8.  Surfers Paradise
9.  Toowong
10.  Biggara Waters

Apartments priced in the competitive market of $450,000-$500,000 were highly sought after, with this price point attracting more than 540,000 views. Coming in second place were those in the $550,000-$600,000 bracket with 440,000 views, with the third spot being apartments within the $400,000-$450,000 price range with a total of 430,000 views.

Of course, number of bedrooms and bathrooms also featured prominently in the findings with two bedroom and two bathroom apartments attracting the highest percentage of searches. Queenslander’s have a keener interest in two bathroom apartments with 71% of searches reflecting this. The national average sits at 42% with only New South Wales sitting slightly above the average at 45%. 

In short, if you are looking for an apartment in Queensland for investment purposes, ditch the media room and virtual golf range in favour of a car park, alfresco dining area and two bathrooms. These types of properties are more attractive to lease and sell.

[Source:http://www.couriermail.com.au/questnews/consumer-research-shows-buyers-looking-for-a-unit-want-parking-space/news-story/a22a9955dbafca2851014b5c4da06c5b]

BUILDING OUR FUTURE (PART ONE OF A SIX-PART SERIES)

A couple of weeks ago we wrote about some of Brisbane’s exciting new infrastructure projects. Well, this week marks the first of an ongoing series called ‘Building Our Future’ whereby we will be taking a closer look at each of these six major projects – focusing on what they are, their benefits for our local economy and, most importantly, what they mean for the world of local Brisbane real estate.

This week we begin by taking an in-depth look at the M1 Upgrade...

What is the M1 Upgrade?

The Pacific Motorway (M1) Upgrade is the rebuilding of the 16km corridor stretch along the Pacific Motorway from the Gateway to Logan Motorway, including Rochedale South, Springwood, Daisy Hill, Shailer Park, Tanah Merah and Loganholme areas - a big win for Brisbane roads!

Why the upgrade?

At present, the M1 is currently pushed to capacity for long periods with more than 147,000 vehicles travelling on the M1 each day, including more than 12,000 heavy vehicles. Current congestion causes frustration for motorists caught in long commutes as well as businesses whom are suffering from lost productivity. The Pacific Motorway (M1) Upgrade, Gateway to Logan Motorway is expected to increase traffic flow and improve safety on the Pacific Motorway.

The benefits to Brisbane

By upgrading interchanges to improve access on and off the motorway, building bus priority measures, transit lanes and the next stages of the V1 veloway bikeway the vital M1 upgrade will ultimately help increase traffic flow and improve safety. This will altogether help alleviate pressure and stress to motorists and businesses by altogether being a far more efficient motorway.

Minister for Main Roads Mark Bailey, Gold Coast Mayor Tom Tate, Logan Mayor Luke Smith, RACQ, Executive General Manager Advocacy Paul Turner and Chamber of Commerce and Industry Queensland, Director Nick Behrens delegation have said that they feel this is a critical upgrade for Brisbane.

“These are vitally important upgrades as the M1 is the highest trafficked road in Queensland,” the delegation said.

The good news for investors

One of the biggest things people look for in a home – tenant or owner – is proximity to local amenities, access to transport and (of course) reliable motorways.

Brisbane CBD investors could not be happier with news of the Pacific Motorway Upgrade being on the cards. After all, this new and improved motorway is only a massive positive for anyone living in the CBD.

The upgrade signals exciting times ahead for CBD commuters (whether via bus, car or bike) who may soon be able to enjoy a faster, safer and simply better experience - on and off the motorway.  

Additionally, will local businesses no longer suffering from lost productivity (thanks to the upgrade), they are expected to flourish and altogether create a stronger and more confident local economy – and that is good news for everyone! With a stronger economy comes a confident property market; we anticipate that buyers will suddenly come out of the woodwork and drive real estate prices up, up and up.

This is music to the ears of anyone with a CBD investment (or two) up their sleeve.

When it comes to Brisbane property, the team at HSBP really know their stuff. We have built our company around providing clients with some of the most lucrative CBD properties that Brisbane has to offer. We do this by knowing our environment and having our finger on the pulse.

If you are looking for property agents that do not settle for second best, then contact the professional team at HSBP on 0419 782 133.

 Earlier this week we saw the Reserve Bank of Australia’s (RBA) minutes from its latest Board meeting, which decided to cut the official interest rate to 1.5 per cent. Now, ordinarily a rate cut may indicate that an economy is in trouble… yes? However, that does not seem to be the case with the recent August cut. From very low inflation and a too-high dollar (something which once upon a time was seen as a good thing!) to another possible rate cut on the horizon – here we explore all the positives that are anticipated following the recent minutes.   

Unlike many other media articles reports which tend to focus on the negative, we thought we would take a leaf out of Peter Switzer’s book (well his recent Switzer article to be exact) and instead focus on the positives to come from the recent RBA minutes, shining a light on why we should be proud of our economy and where it is headed.

 We will start with economic growth.

 Recently the RBA said, “While GDP growth had been stronger than expected in the March quarter, reflecting unanticipated strength in resource export volumes, it was expected to have been more modest in the June quarter. Economic growth was expected to pick up to be above estimates of potential by mid-2017.”

 According to Switzer this means we can expect solid growth for the remainder of the year, and beyond.

 “In simple terms, the Bank expects us to grow in the 2.5 – 3 per cent band until mid-2017 and then we should kick higher, which is great news for job creation if they’re right,” writes Switzer.

 Peter also writes that, “The RBA thinks inflation won’t spike any time soon and the Board was annoyed at the damn dollar staying high, as it was complicating the ‘adjustment process’ following the end of the mining boom.”

Perhaps this is a hint that we can expect another rate cut in the not so distant future? Seems that many industry experts feel that will be the case. We agree.

But the real positive story to come from the recent RBA minutes is not about low inflation or a too-high dollar for that matter. Instead, it is the fact that the Bank does not seem spooked at all about current house prices.

 Here is CommSec’s Craig James’ view on the matter: “Importantly, the Central Bank has removed concerns of excessive house price growth from its wall of worry – essentially one less hurdle to even lower interest rates in the future,” he concluded. “And with the Aussie dollar drifting higher, it is very likely that policymakers will contemplate another rate cut in coming months. CommSec has a further rate cut priced in for November.”

 So there you have it. In summary, it seems the economy is growing well and is expected to only flourish even more over the coming months. Plus, we cannot forget the other rate cut which seems fairly probable in the near future – just ask almost anyone. And, when it comes to rising house prices, as Switzer puts it, “We shouldn’t be worried about rising house prices because the country’s second most important policy body isn’t! (Meaning the RBA).

 Seems there is more good happening with our economy than much of the media would like us to believe. If like us and industry expert Peter Switzer, you feel that the economy could well be on the way up, now may be the perfect time to explore new investment opportunities.

For more information or to schedule an appointment, contact HS Brisbane Property on 0419 782 133.