24 Mar Happy Birthday to the anniversary of Melbourne lockdown. What did it do?
Exactly one year after Melbourne first went into lockdown we are now almost back to pre-covid life with very little mask wearing, people back in the office and crowds at the footy. But what things have become ingrained in post-covid life, and what will be the lasting impact on the economy and the apartment market?
Today Charter Keck Cramer (CKC) released the “State of the Market” paper for H2 2020 for Apartments in Melbourne, Brisbane and Sydney. It’s an interesting read.
CKC support the same view I have outlined previously so I wont repeat it all here but they have put a bit more science around it. They also say the growth in owner-occupier activity is due to not only record low interest rates but an unexpected increase in the household balance sheet after the extended lockdowns giving many people a higher deposit to buy a home. While some of this increased demand has supported apartment sales, the conventional home market has seen most of the benefit. CKC suggest this is due to the change in housing preferences created by the pandemic.
Developers and designers of new apartments will need to give the crystal ball a good polish to understand what apartment occupiers will want over the next 5 years with trends like work from home for some part of the work force likely to be a permanent. Services like high speed internet and common or community facilities may also become more popular for the same reason. There is a good chance many existing apartments will be getting a make over.
CKC also agree that the return of international travel and population growth remain key drivers for the recovery of the apartment capital and rental markets. So with the vaccine rolling out lets hope that happens ASAP.
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