The Australian Bureau of Statistics (ABS) has released a report on intergenerational changes in behaviour relating to the choices in our population and the way we are living.
The ABS is expecting that by 2055, the male life expectancy will rise to 95.1 and females to 96.6. With the rise in overall population in Australia to a projected figure of 40 million by the year 2055, we are seeing many changes to the way people live.
In my role as a buyers advocate and property mentor, I see the swing towards lower maintenance living and communal Owners Corporation arrangements, with amenities and transport being of paramount importance. At least 12 of our clients in the program last year purchased their ‘down-size’ home as part of their investment strategy, all selecting apartment living.
Their rational was simple, buy or downsize home now and then in ten years time move in.
With households expected to increase to 4.3 million by the year 2040, which is only 25 years away, we are already seeing the changes now. Interestingly, many of the figures indicated that people were seeking single dwellings and the preference to live alone. This is predominant in our ageing population, but I am seeing it also in younger couples. In my day, everybody shared until we could afford our own homes. Today people don’t chose to share, often carrying a bigger burden of rental or mortgage debt, which is an understood sacrifice.
The supply of single dwellings with ground floor areas is so scarce. I really think town-planning needs to re-consider many of the developments coming through and make ground floor apartments with out door areas an absolutely must. I often see balconies installed, when the ground is only one metre below. What a waste!
The pressure on these single dwellings with outdoor areas is evident in the pricing. Today, older apartments and villas with these configurations are seeking a premium price.
As you know, I have been preaching the donut for 6.5 years now. The evidence is staggering, when you consider that the donut increased 13.2 percent last year, with the outer zones at only 8.9 percent. With the lack of state and federal government focusing on infrastructure in these outer lying areas, I can only see the donut increasing in value. Our investments will benefit from this.
Lynne Wilton, March 2015