Newspaper article The Northern Star (Lismore, Australia)

Demographics of Property; Every Suburb Has a Profile - Choose One That Suits You

Newspaper article The Northern Star (Lismore, Australia)

Demographics of Property; Every Suburb Has a Profile - Choose One That Suits You

Article excerpt

OUR lifestyle affects how we buy property and new research shows there are significant changes to come over the next 20 years.

A new report from the Australian Bureau of Statistics shows there will be a spike in the number of couples-only and single-person households and that will obviously translate to a spike in demand for smaller homes such as apartments, semis and townhouses.

The most common household type - mum, dad and a couple of kids - will remain dominant, making up about seven in 10 households in Australia by 2036.

But our aging population will contribute to a rapid rise in couples-only and single-person households - with the number of couples-only households further strengthened by more young couples choosing to remain DINKS (double income, no kids).

So what does this mean for property? Well, you can pretty much rely on good quality apartments near the city as well as beachside metropolitan suburbs doing well over the next couple of decades. These are the areas where young executive couples and empty-nesters looking for a better lifestyle are choosing to buy.

While the seachange trend is a long-held Australian tradition, we are definitely seeing a significant proportion of empty-nesters buying in suburbs close to the CBD, where they can be close to entertainment options as well as the grandkids.

So the odds are empty-nesters and DINKS will be competing for the same properties more and more and since both demographic groups are usually pretty cashed up, this bodes well for apartment price growth in desirable locations.

For a long time, apartment prices have tended to appreciate at a slower rate than houses but this might change over the next 20 years as demand for smaller homes takes more hold. It depends a lot on supply but I wouldn't be surprised if apartments begin to deliver very similar capital growth to houses at some stage in the medium term future. …

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