AS Generation Ys grow up and become a bigger force in the residential property market during the next decade they will be one of the main groups that influence how our housing and suburbs work
By the time 2020 rolls around Baby Boomers will no longer be the dominant force in the Brisbane property market, according to property consultants Urbis.
Urbis director of economics and market research Jon Rivera said it would be those currently aged 18-32 who would make up half of Brisbane’s population by then and would put the most demand on the housing market.
“In less than seven years, one of Australia’s largest population groups will be moving out of the family home and into independent living as 60 per cent of the generation Y demographic will be aged between 25 and 36 years of age,’’ he said.
“Housing demand from this group may be one of Brisbane’s biggest ever.’’
He said the shift toward the sort of housing generation Y were interested in had already started. They looked for affordability, lifestyle and accessibility, which meant many bought units.
“I think we have really been in the middle of it (the change) since probably the catalyst point was the GFC.’’
A lift in overseas migration had helped to swell the ranks of gen Y as a large majority of migrants were aged between 20 and 35.
“When we look at projections that we have been modelling, about 60 per cent of gen Y (in 2020) will be above the age of 24. Close to 30 to 35 per cent will be above the age of 30.’’
Mr Rivera said the type of property those people were looking at was focused on lifestyle.
“Generation Y is the most mobile and globally connected generation that property has ever seen and will be seeking dwellings and products of their time.
“Due to housing affordability in the areas where they really want to live, in the early years generation Y will opt to purchase an apartment or townhouse in Brisbane’s middle ring suburbs or rent an apartment in the inner city.
“They are a product of their time; they want low maintenance, walkability and trying to balance that all within the cost of living.’’
As a result Mr Rivera said houses were not going to be the preferred option for many as it was too expensive. Apartments were an easy entry point, low maintenance and in the location they were after.
As the opportunities to develop housing close to the city were becoming scarcer, Mr Rivera said it would show its true value in the future.
“We will see more infill (development) in the middle ring,’’ he said. “I think Brisbane is really well placed for this change, because we have got some good fundamentals.
He refers to the future demand as having a “Westfield effect’’.
“If you look at Brisbane a lot of growth areas are around Westfield shopping centres. Carindale, Mt Gravatt, Chermside, Indooroopilly. They will be good hubs.’’
Mr Rivera said those suburbs with strong transport links and services would benefit from demand.
“Brisbane will grow not just from the centre but from the outside (suburbs) in.’’
Despite the emergence of gen Y as a property buying force, Mr Rivera said Baby Boomers would still have a role to play.
Many would downsize to three-bedroom apartments in the inner city in mixed-aged environments and in locations with shops, restaurants and entertainment, or move to coastal lifestyle locations.
“Already, the December 2012 and March 2013 quarters have registered a bounce back in the number of sales for owner-occupied, three-bedroom apartments.’’
Mr Rivera said in the next three decades the different housing demands of different generation types would change Brisbane’s inner and middle ring suburbs.
“Projects such as Nundah Village, Showground Hill, Boggo Road Urban Village and East Village are examples of these urban precincts which will be behind Brisbane’s transformation.’’
Original article published at www.news.com.au by Michelle Hele The Courier Mail 17/6/2013