Now that the economic distress brought about by the COVID-19 pandemic is fading, the property market in Australia has become a seller’s market.
Buyers are currently looking for larger accommodations after their experience with the lockdown and a rise in remote working prospects.
The demand outweighing the supply has caused an increase in property prices, especially in the city areas.
New figures from Housing Industry Association (HIA) show property affordability levels have now hit December 2019 levels, which is very poor.
Sydney, without a doubt, is currently the least affordable market and Darwin the most.
Recent reports on property affordability suggest that more Australians left capital cities in the first three quarters of 2020 than any other time since 2001.
Until last month, regional markets were still rising (up at 2.1%), which shows that the trend is not one that can potentially lead to a migration crisis, but it may continue in the long run.
However, contradicting these revelations, the CEO of Mirvan and trained urban geographer—Susan Lloyd-Hurwitz has come out with a statement of her own.
She firmly believes that the recent outmigration is only a small cohort of people and not a trend. And that, the current event is not a ‘demise’ of cities.
What is a borrower to do amidst a situation where even experts and reports have a clash in perspective?
If the property affordability is too expensive for borrowers and they choose to work remotely, the best option would be moving to affordable regional areas.
But, if they prefer the city and cannot work remotely, a home loan is always an excellent option. It will help one share the burden of purchasing properties at a lump-sum, and one can make timely repayments in fractions of the total price.
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