GET READY FOR ANOTHER BOOM
Australia is on the cusp of a national real estate boom – the first since the start of this century. In many parts of the nation, the strong up-cycle is already happening.
We haven’t had a genuine boom since the one from 2001-2004, when all the major markets experienced big price rises. The one that drove Sydney and Melbourne prices higher from 2013 to 2017 was not a nationwide event, as few other locations shared that price uplift.
But right now forces are building which will generate growth in most major cities and towns in 2021 and beyond. They will be boosted by new events that will energise economies, including infrastructure spending and increased activity in the resources sector.
We currently have a remarkably strong situation – everywhere, in fact, except the two biggest cities, which are so often the exception rather than the rule.
Data from CoreLogic and other credible sources suggests that most markets had price growth in 2020. Many of our capital cities and regional areas recorded some growth in most months since February, when the pandemic struck.
The trend I call the “exodus to affordable lifestyle” has been under way for some years, energised by the ability of people to work remotely. Pandemic lockdowns turned a steady drift to the regions and the smaller cities into a stampede.
The regional areas in particular have been pumping strongly, with ultra-low vacancies, rising rents and buyers outnumbering sellers. People at the coalface, including buyers agents, valuers
