Oct 21, 2020
How will the next five years unfold?
That’s the question everyone is asking, isn’t it?
What’s going to happen to my life, my health, my job or my business?
And for many people listening to this podcast, they’re wondering what’s going to happen to our property markets and the value of my home and my investment properties.
Of course, nobody knows for sure, the world seems to be in a state of chaos.
While some of the parts of the world are experiencing a second wave of coronavirus, other poor parts of the world are experiencing extreme first wave. Add to this the state of flux of Australia’s trade relationships, the world’s geopolitical problems, and we are living in interesting times – aren’t we?
But amongst this chaos in tune, there are some things that can be said about the next five years, some emerging trends, behaviours and opportunities that will flow from the various undulation is in our Australian demographic landscape and that’s what I’d like to talk about today with Simon Kuestenmacher.
One of the themes of our regular discussions tends to be how demographics drive our markets – not just the property markets but business as well.
Let’s start with the elephant in the room – clearly, we are going to have less immigration in the short-term.
We shouldn’t forget that almost half of Australia’s population growth comes from natural increase, and an even bigger driver of demand are emerging trends, behaviours and opportunities flow from the various undulations in the demographic landscape.
A breakdown of the different demographic groups:
Which of these groups are going to change significantly and place an increasing demand on our resources?
Because of their sheer size and stage in the life cycle, no generation will shape Australia more during the 2020s than millennials.
How are millennials going to reshape suburbia?
Who will move into the inner-city apartments left behind by the millennials?
Conclusion:
Life will go on post Covid-19 and Australians will transition from one stage of the life cycle to another.
Many will move from the bush to the city, some will move from the city centre to the city edge, pre-retirees will move between states, some may even be motivated to pursue the space and the serenity of low-density living in what they consider to be a contagion-free community.
And that is surely the beauty and the opportunity of the lifestyle options on offer to those of us lucky enough to live in Australia.
Links and Resources:
Michael Yardney
Simon
Kuestenmacher - Director of Research at The Demographics Group
In these challenging time why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors.
Shownotes plus more here: The Shape of Things to Come with Simon Kuestenmacher
Some of our favourite quotes from the show:
“I can see this is going to revitalize our local shopping centres that were starting to die off for the big centres that became entertainment venues as well.” – Michael Yardney
“I can’t see the government having any alternative but to push migration.” – Michael Yardney
“Most wealthy people are self-made. They’ve actually achieved it.” – Michael Yardney
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