Although interest rates and record-low housing affordability are viewed as the biggest deciding factors for property purchases, a new report revealed home buyers are increasingly prioritising access to transport, lifestyle, and community when making their buying decisions.
Herron Todd White’s (HTW) director, Perron King, said that with interest rates now reaching a peak, potential residential buyers may return to the market with renewed confidence, seeking out property that suits their needs.
“Purchasers are increasingly taking into consideration the position of a property in relation to public transport links, particularly in the larger eastern capital cities of Melbourne, Sydney and Brisbane,” he stated.
Real estate agents have indicated proximity to a metro rail station within a five-to-15-minute walking distance is becoming a popular purchasing factor for home buyers, regardless of whether the suburb is located in the inner or outer areas of a city, according to Mr Perron.
“Rail access not only provides a link to the CBD hub from home but [also] access to other parts of a city, be they major sporting grounds or to friends and family located in other suburbs,” he explained.
For other cities, he highlighted lifestyle factors that influence a person’s buying decision and shift depending on the region they’re in.
“For example, Perth, being the sunniest capital in the country and blessed with some of the world’s best beaches, some buyers are motivated by the outdoors and being within close proximity to the coast together with desirable amenities of cafes, established schools and shops.
Suburbs that have a strong sense of community are also increasingly drawing in buyers, Mr King noted.
While Mr King noted home buyers’ budgets will continue to be tight, thanks to borrowing capacity being dented by the interest rate raising cycle that kicked off in May 2022, the latest inflation data may indicate a shift in the RBA’s monetary policy stance is on the horizon.
“The latest data has revealed that inflation has peaked and is finally beginning to soften, with the RBA signalling we may be near the peak of the rate cycle.
“Potential residential purchasers may now return to the market with renewed confidence, seeking out property, be it close to a beach, a train station with city access or indeed with their tribe in their desired suburb,” he explained.