The demand for high-end homes is at an all-time high
Shopping sprees, dinner and drinks, weekend getaways… these are just some of the delights we once took for granted that we are only just getting back now. We must have saved a lot of money during the extended lockdowns, right?
Being stuck indoors for the better part of a year has inspired many of us to renovate, redecorate or simply move the furniture around within our homes for a fresher feel. And for others, it has motivated the desire to move into a larger, grander home.
Once a more niche part of the market, property experts and builders have noticed a significant increase in people wanting to buy or invest in a high-end home.
Why the demand for bigger homes?
In 2021, alongside border closures we saw homeowners enjoying historically low interest rates. Many spent this money on home comforts, while others saved their moolah with the intent to upgrade or invest in a high-end property.
As we have discovered, working from home and home-schooling can be difficult to get used to, especially when doing so in an uncomfortable, out-dated or cramped space. So it makes sense that high-income homebuyers would want to move into a more spacious, comfortable and aesthetically pleasing home that provides flexibility when it comes to the home office set-up.
“First-world problems!” I hear you say. Perhaps. But the demand for bigger homes with a wider array of creature comforts will only continue to rise as the number of people adopting a hybrid work-style continues to increase – especially in locations affected by repeated lockdowns. The same can be said for people living in apartment blocks or families with limited backyard space.
Lockdowns driving decision-making
As we have seen in Victoria, there has been a surge in demand for the premium property listings following the extended and harsh lockdowns. And because we can’t be certain about whether future lockdowns will take place in Sydney or across Australia, homeowners aren’t taking any chances and are choosing to upgrade now while the interest rates are low.
Homebuilders have noted a higher demand for floorplans featuring more storage and office space, as well as larger outdoor living areas. There has even been a surge in floorplans featuring multiple living areas, and requests for luxury aesthetics and top quality finishes – and it makes total sense.
What are homebuyers looking for in an upgrade?
70% of people surveyed by realestate.com.au for the 2021 New Home Buyer Research Report claimed they had made changes to their properties during the COVID-19 lockdowns with the aim of creating a more liveable space to accommodate the extra time spent at home.
Respondents identified that the most important features of concern in their homes during lockdown were space, natural light and of course, comfort.
84% of people looking for a newly built home said that a healthy lifestyle that promotes good physical and mental health is highly important, and close to 60% of respondents placed outdoor space as their number one priority when looking to upgrade their current home.
On the other hand, 80% of buyers looking for a brand-new property want more indoor space – especially if it means an extra bedroom or study, and 76% want more natural light and airflow. And in a post-COVID world, who can blame them?
realestate.com.au recorded a huge increase in searches for ‘super luxury’ builds during the lockdowns, with greater views and levels of enquiry, suggesting homebuyers are done with restricted living and ready to flourish in a lavish home they can feel comfortable in – no matter what else is going on in the world.