Serious buyers in major capital cities across Australia are turning their backs on the inner city and looking for homes in the outer suburbs this spring, according to new research.
Domain‘s new Buyer Demand Indicator, which tracks weekly demand for houses and units across Australia, focuses on behavioural searches to identify those who are more likely to purchase a home.
Those “likely to buy” are classified by the actions they take on Domain, like shortlisting a home, sending an inquiry, completing a property inspection and frequently viewing photos and the property listing.
A higher positive percentage change indicates the buying and selling environment favours sellers, the opposite buyers.
It found that both houses and apartments in the outer suburban areas of Sydney, Melbourne, Brisbane and Perth were in the highest demand in those cities for the month up to September 6.
“The current health crisis has changed the way we use our homes, and for some, altered our purchasing decisions and property wish lists,” said Domain senior research Analyst Dr Nicola Powell.
Demand from serious buyers, or those acting with “high intent”, have increased in most capital cities around Australia as pent-up demand from the coronavirus-related lockdown dissipates through property markets.
The indicator showed that since the pandemic began, demand has increased everywhere but Melbourne and Hobart, with serious buyers showing the biggest increase in activity in Darwin.
The Northern Territory capital recorded a massive 72 per cent increase in buyer demand growth, which Dr Powell said could be the start of renewed interest in the city’s long-suffering housing market.
Melbourne’s low demand for property, falling 24.8 per cent since the start of the pandemic, was due in part to the lack of physical inspections as part of the stage four lockdown, Dr Powell said.
However, regional Victoria outperformed the city by 45.8 per cent.
So what is happening in Queensland?
Brisbane and Queensland
Demand for Brisbane houses grew 18 per cent since the crisis began. Units didn’t do as well, but were still up 5.6 per cent.
Regional Queensland was again better on both measures, up 27.9 per cent and 16 per cent for houses and units respectively.
Dr Powell said lifestyle areas like the Sunshine and Gold coasts were performing well, and closer to Brisbane the Moreton Bay region on the city’s northern fringe had good growth in interest too.
“Those are the areas which are affordable and attractive to first-home buyers,” she said. “When you have government incentives as well, perhaps it’s helping drive demand towards these areas where you can get a block of land.”
You can read the full report from Domain.com.au here