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More than a third of Australians will remain working from home next year despite a return to workplaces now being encouraged — so, what will this mean for real estate?
New research from LJ Hooker has revealed that only 64 per cent of Australia’s workers will be returning to the office next year, which is set to have massive ramifications for the types of properties Australians want to buy.
The real estate network conducted a survey that showed prior to COVID-19, 79 per cent of people worked at their place of work while 21 per cent worked from home.
Over the course of 2020, that number shifted dramatically due to the pandemic, with 38 per cent of people currently working from home.
That number is expected to remain at 36 per cent of Australians working from home as we move into the new year.
According to LJ Hooker’s head of research, Mathew Tiller, the shift in working and living arrangements “has changed the way we now use our homes”.
It’s set to have major ramifications for real estate as many people rethink where they live and work, how they live and the functionality of their homes, he considered.
“Our research shows that many Australians now consider their homes to be their workplace as well as their living quarters, and those with children have turned their homes into learning spaces,” Mr Tiller said.
“So, what we’re seeing, and will continue to see next year, is an increase in demand for properties with suitable workspaces.”
LJ Hooker acknowledged that many Australians have experienced one or more lockdowns over the course of 2020, which meant many have reported wanting more space in their home.
It expects a push in favour for houses over apartments next year as a result.
Mr Tiller said: “In 2021, we expect to see a slight shift away from apartments and first home buyer activity to peak, especially thanks to the current government incentives and stimulus packages. We also expect a rise in the number of renovations as people add more space to their current structures.”
So, what else might change?
Mr Tiller flagged granny flats as ready for a boom, “as this appears to be the perfect solution to creating workspace, while creating a somewhat boundary between work and personal life”.
“This will have a knock-on effect for the construction industry, and the sector will need to consider the layouts of new apartments and houses to cater for the shift in demand,” he noted.
Regional relocations will also stay popular, with a rise in regional living expected to coincide with a rise in nearby commercial property transactions as individuals decide to start their own businesses.
It’s a phenomenon that’s been seen first-hand by LJ Hooker Taree managing director Amanda Tate, who has observed “an increase in the number of people moving to the area, but interestingly, the rise in residential sales is in conjunction with our commercial leasing activity”.
She said that some of those that were made redundant due to COVID have decided to move out of the city and start their own business, either using their home as their head office or buying or leasing affordable commercial space in the centre of town.
“Many of these start-up businesses are filling a niche market that our area is lacking, but obviously needing as they are proving very successful almost immediately,” Ms Tate said.
She explained that buyers are wanting to get more for their money and are either returning or relocating to regional suburbs like Taree because they want a similar lifestyle, in a bigger property, but without the financial pressures of buying and living in a capital city.
According to Mr Tiller, it’s a trend that’s not endemic to Taree: “This trend has been felt across the board, with towns like Noosa on the Sunshine Coast, Bangalow near Byron Bay or Wollongong and Thirroul in the Illawarra region experiencing a significant boom since the start of COVID.”
He said LJ Hooker offices operating in NSW’s Central Coast region have reported that approximately 90 per cent of enquiries now come from Sydneysiders, while it only used to be 50 per cent before COVID.
“Local governments in regional areas have also been quick to pick on this emerging trend, and are actively offering support and, in some cases, financial incentives for businesses to set up within their local regions,” the researcher concluded.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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