Global real estate trends and how Australia is affected

 

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The world and us

 

Global real estate trends and how Australia is affected is a new reality. COVID-19 changed real estate considerably and also affected economic conditions, government policies and technology all profoundly impacting people – particularly young buyers. COVID-19 accelerated acceptance of working from home, spotlighted how immigration affects housing and heralded the inflation we are struggling to control.

 

What’s happening everywhere?

 

The Covid impact. During Covid Australia witnessed the pull factors that drive people to cities where not relevant and since Covid has not been affected. Issues people considered problematic in the regions like unemployment, lower wages, poorer living conditions, fewer health and education services and fewer facilities disappeared. Instead, people were attracted to a less stressful life that was not dissimilar to their city lives and less expensive.

 

Inflation. Rising inflation has led to higher construction costs, increasing home prices and rental rates. As the cost of living rises, households have experienced reduced purchasing power, making it more challenging to afford homeownership or meet mortgage payments. Central banks globally have responded to inflation by tightening monetary policy, which attempts to dampen housing demand through higher interest rates and stricter lending standards, however, this seems to have had less impact than regulatory changes.

 

Policy and regulation. Government policies and regulations significantly impact the real estate market, including taxation, zoning laws, and land-use policies. In Australia, factors such as changes in interest rates, immigration policies, and housing affordability measures implemented by the government can influence property prices and market dynamics. Unfortunately, Victoria has led the way for some regulation that appears reactionary rather than visionary.

 

Technology. The real estate industry increasingly relies on technologies like virtual reality, artificial intelligence and blockchain to streamline processes, improve customer experiences, and enhance property management. Australia has equally embraced technologies and post Covid people are much more confident buying and selling remotely leveraging digital platforms for property listings, virtual tours, and online transactions.

 

Sustainability. There’s a growing emphasis on sustainability and environmentally friendly building practices in the real estate sector worldwide. Australia has seen an increase in green building certifications and sustainable development projects, reflecting a broader global trend towards eco-friendly real estate practices.

 

Investment opportunities. Real estate continues to be an attractive investment asset class globally, offering the potential for capital appreciation, rental income, and portfolio diversification. Australia’s stable economy and transparent property market make it an appealing destination for domestic and international investors seeking opportunities in residential, commercial, and industrial properties. Equally, Australians are more interested in overseas investing and retirement options.

 

Overall, Australia’s real estate market is influenced by both global trends and domestic factors. While it has experienced periods of robust growth and high property prices, challenges such as housing affordability, supply constraints, and economic uncertainty can also impact the market dynamics. The future of housing is very concerning for young people. what happens in the world affects us and many are worried about what housing will look like in the not so distant future.