People are trading the big smoke for country living

Previously, people didn’t think that there is any appetite for properties outside the big smoke but COVID-19 was able to prove them wrong – regional markets are really thriving. People are aiming for better and bigger homes which are still affordable. 

On-going lockdowns are accelerating the buying and investing activity going on in regional towns. According to the Regional Movers Index, the number of people who made a move to regional areas in the March 2021 quarter is 7% more than in the March 2020 quarter, highest since early 2018. Meanwhile regional people have been staying in place, accounting for an increase in net migration into regional areas.

Why are Australians relocating?

In a dramatic move that would have been unimaginable before the pandemic, urbanites are trading city life to seek out new horizons. 

Firstly, many people are considering buying a property in regional areas. The regional markets are doing extremely well because of its affordability. Selling a city property and then purchasing a regional property at a lower price allows them to pay down their mortgage much more quickly. On top of that, people now pay more attention to their homes and the size of their homes as well. So that plays into the market conditions that we’ve seen in the last few months. By comparison to metro areas, your money does go a lot further. You’ve got better value-for-money homes, much more space, better views and better locations. 

Secondly, people are spurred by the growing gap between stagnant wages and rising living costs. Remote workers can now take advantage of a higher quality of life with more disposable income than in the city. After all, we want to stay where we get the most value out of our money. 

Thirdly, people are also buying the feeling of a slower, more outdoorsy lifestyle. Even if you’re inside working and you look out the window and see a good view of the bush, that can make you more focused, sharpen your concentration and help you relieve stress. 

Seeing rural as the new urban

One benefit we are seeing also is there are younger people moving in instead of just pensioners retiring to nature. The idea is that young workers will benefit, and towns too. This influx of energy, diversity, talent and purchasing power makes regional areas more attractive to investors and home buyers alike.

According to the PIPA Annual Investor Sentiment 2020 survey, more investors said they are considering regional and coastal markets. 22% of investors surveyed agree that regional markets are the most appealing, compared to 15% in 2019. Regional markets are set to benefit from plenty of new residents. Investors are eyeing these top locations: regional NSW (21%), regional Qld (18%), Brisbane (16%) and regional Vic (14%). 

So do I buy regional or do I buy city?