Property values, and working from home
This month there seems to have been an increasing interest in the ramifications of the COVID-19 work from home paradigm shift, and how it relates to property values. Domain noted it in a look at why first home buyers might be increasingly drawn to the fringes of a city. Apart from the fact of COVID-19 normalising working from home to some extent and so at least temporarily removing the need to be tied to the city so much, other reasons included having the opportunity to feel a more distinctive sense of community that being in a new and developing area can have, and the relative affordability compared to more established areas closer to the city.
The article includes discussion with Stockland’s general manager of community sales Stephanie Mackenzie, and writes:
“The pandemic has been a catalyst for people to take stock of their current home, lifestyle and environment and reflect on what they need now and in the future, says Mackenzie.”
Tim Lawless also noted the phenomenon in this month’s monthly Core Logic Housing Update. With a slowing -0.4 % decline in property values month to month nationally, -0.5% in Sydney, and -1.2% in Melbourne, other cities were basically flat or moving into slight positive value growth. Combined regional values were flat (0.0%) and combined cities were -0.5%
Lawless says, “… the normalisation of remote working through the pandemic could make proximity to the major cities less of a factor in home purchasing decisions.”