The coronavirus pandemic has triggered a seismic shift in where the working Australian chooses to live. The technological wonders of the Internet have made many workers realize that their normal nine to five hour job doesn't always have to be confined to a conventional office building.
"What used to be thought of as idyllic is increasingly becoming reality for most people," says Simon Pressley, research director at market intelligence and buying agency firm Propertyology. “Instead of where you live is determined by where you work, there is a change with the people who now live in a place that you are working on. they really like it while bringing their work with them. ”
Pressley describes the work from home phenomenon (WFH) as a "structural change" which will have a profound impact on the Australian real estate market in the years to come.
What makes a great location for remote working?
Recent Propertyology analysis has tilted Bryon Bay in New South Wale as "arguably the best pre-COVID Australian prototype for working from home".
According to the study, 13.4% of Byron Bay's workforce designated "home" as their primary business address in the 2016 census. This number is three times the national average of 4, 7%.
Additionally, almost half (48%) of the city's workforce has occupation types that fall under the categories of professionals, managers, or office assistants – many of whom may choose to do their work remotely if it suits them.
"Few would question the idyllic lifestyle of the seaside town in northern New South Wales," says Pressley, who is also a fellow of the Real Estate Institute of Australia (REIA). "What's not to love with great weather all year round, beautiful beaches and the plethora of great cafes and restaurants?"
Pressley says Bryon Bay's location is also an advantage.
"Whenever the residents of Byron need to go to the big smoke, Brisbane (two hours) and Gold Coast (one hour) are easily accessible by car on the highway, while the Nearby Ballina-Byron Airport offers daily flights to other major cities, "he says." It is no coincidence that the total passenger volume has increased over the years, so that the airport has significantly improved its ranking, from 40th largest Australian carrier in 1993 to 1994 to 17th in 2019 to 2020. "
According to data from Propertyology, the city has a mature population, with a large proportion of 40 to 69 years old and a smaller proportion of families with children at 38.1%, which is well in below the national average of 44.7%.
Byron Bay also has a high number of owners with above average incomes. While real estate in the city is "insanely expensive," 36% of households have fully paid off their mortgage, above the national average of 31%, Pressley says.
The median house price in Bryon Bay is $ 995,000, according to June Propertyology figures.
What are the places that should be the next home work hot spots?
Pressley admits that living in Byron Bay is not for everyone, as he understands that only a few can afford to buy a property in a city where the median house price is the highest in the country.
"But a nice gift created by the societal breaker known as COVID-19 will be the evolution of a group of 'alternative Byron Bays' across Australia," he says. “When you consider where these places will emerge, you first wonder about the various (subjective) lifestyle factors that help people feel relaxed; the things around which the vacation is planned – surfing, hiking, village life, a walk along the beach, views of hills and vineyards, food cultures and mountain biking. "
According to the 2016 census, the coastal towns of Surf Coast (12.8%) and Bass Coast (8%) in Victoria, Kiama (11.4) are among the localities in the country with the highest proportion of people living in the country. 39; employers working from home. %) and Ballina (8.3%) in New South Wales, Noosa (10.8%) in Queensland, Esperance (8.8%) in Western Australia and Victor Harbor (6.9%) in Australia -Southern.
Locations that boast of wineries and gourmet cultures include Adelaide Hills (13.8%), WA & # 39; s Margaret River (8.7%), and Victoria & # 39; s Macedon Ranges (11.1 %) and Mornington Peninsula (8%).
Meanwhile, Golden Plains (16.9%) and Warragul (9.2%) in Victoria, Scenic Rim (12.3%) and Maleny (11.9%) in Queensland, and Armidale in NSW (6.8%) are emerging places with various inner wonders.
How will remote working affect the future of the Australian real estate market?
“From a real estate market point of view, it doesn't matter whether you personally can the WFH or not,” Pressley says. 'What is relevant is that when Australians complete the next census survey on August 10, 2021, the percentage of the national workforce permanently working from home will likely be much higher than the 4.7% of August 2016. "
“Imagine if the total WFH membership in Australia increased to just 10%. This would mean that in a country with 10.5 million households, 1.3 million people will earn their income with "home" as their place of work, "he says.
Pressley says he sees a "shift in demand for housing from crowded and expensive capital cities to more relaxed areas of regional Australia".
He adds that part of the appeal of these lifestyle places is that these areas do not have a high density population, which means an influx of population of 100-200 people per year through internal migration can exert "reasonable pressure" on housing demand.
"Until now, the main driver of those who wanted to live in the city center was that they worked there," Pressley says. “Given the transition to the WFH, the loss of skill level 4 and 5 jobs, and the desire to close open spaces, it is clearly evident that the demand for downtown apartments will decrease. . "
Recent data from Propertyology shows that the population of Australia's eight capitals has fallen by 53,000 due to net internal migration in the three years ending June 2019.
"I won't be at all surprised if this exceeds 100,000 people in the next three years," Pressley says.
