Downtown buyers and demand for townhouses will drive the real estate market in 2022

Reverse sea changers and people moving back to downtown and townhouses could drive the real estate market in 2022 according to a leading buyers agent.

Reece Coleman, head of advice for Australian buying agency Maker Advisory, said many people who had left cities in the past two years were starting to return, boosting property demand.

“After long periods of working from home, many employers are now asking employees to return to the office part-time,” Coleman said.

“As such, we are seeing a growing trend of sea and tree changers who previously moved from the city to work remotely now competing for apartments in the city, driving up prices and rents.”

With house prices soaring over the past year, Coleman is starting to see people looking for more affordable options such as townhouses.

“Having been excluded from the price of independent homes, many young professionals are instead turning to condominium properties such as townhouses, villas and apartments,” he said.

“We are currently seeing a lot of interest in such properties, thanks to their attractive prices, good living comfort and low maintenance requirements compared to traditional houses.”

Mr Coleman said the return of international students and skilled migrants will also benefit the city’s markets.

“As arrivals increase, this will fuel growing demand for rental properties, which will kick-start the recovery of inner-city rental markets previously hampered by border closures and lockdowns,” he said.

Among the positive news for buyers who have struggled with tight supply, the recent surge in listings should benefit those looking to buy property in 2022.

“With more inventory now coming to market and increased inventory levels expected during the fall sale period, this levels the playing field for buyers, gives them more choice and makes it harder to sell. of less desirable properties that might have gone before,” Mr. Coleman said.

One of the trends likely to continue will be labor shortages and rising material costs, which will continue to make life difficult for builders and renovators.

“Residential construction costs rose 3.8% in the first quarter of 2022, more than four times the consumer price index increase of 0.8% over the same period,” said Mr Coleman.

“Due to rising material costs and labor shortages, renovation and new home construction rates are expected to slow – we are already seeing tradespeople continually revise quotes upwards during renovations.”

Looking ahead, Mr Coleman predicts the coastal suburbs and Brisbane should have a solid year.

“The New South Wales Government recently announced increased investment in the Illawarra, Newcastle and Central Coast areas, and we expect this will lead to increased investor interest in the ‘suburbs’. dormant “of these areas, especially those close to beaches and amenities,” he said.

“Across the border, with Brisbane having secured the 2032 Olympics, we expect increased investor activity in the Sunshine State capital over the next few years, putting its property market firmly on par with those of Sydney and Melbourne.”