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Young Australians going big in smaller cities
Migration patterns are certainly turning upside down Down Under. A decade ago, Australian youth emulated the global trend in flying the nest. The grass seemed far greener in Australian mainland capitals like Sydney and Melbourne, in pursuit of glamour and success. Now, the same young people are coming home and bringing their peers with them. Baxton Property Management in Hobart investigated young people’s part in the Tasmanian capital’s current property boom.
Brain drain reversing its flow
There was a time when town and city elders mourned the “brain drain” of young residents in the rural and coastal areas of Australia. Tasmania was hit particularly badly. Now many people in their early 30’s are abandoning the large mainland capitals like Sydney and moving to smaller cities like Hobart. Looking for more affordable and comfortable places to roost, they are heading for the coast or rural areas. But they are hedging their bets, choosing smaller cities rather than tiny towns.
Some are settling for good. Others are purely investing in property they feel is affordable. For some young investors, Hobart provides an affordable investment and a get-away option while they continue to work in Sydney, which is less than two hours away by air. Meanwhile Sydney is losing its residents at a fast rate. More than 23,000 residents left last year for other Australian cities or states.
Sea change becoming the trend
Are they adopting the Australian sea change concept that’s usually reserved for retirees, and searching for a different lifestyle? Or is a survivalist instinct driving them? On average, it seems to be a bit of both.
The talk around town is that they are looking for financial survival in terms of an affordability which income and dwelling costs are reasonably balanced. But they are also looking for the sea change that will take away some of the T’s & C’s they feel are attached to the better salaries earned in cities. These include commute time, and the high ratio between rentals or property prices and earnings – both of which are higher in Sydney.
More affordable than Sydney
Despite the increasing cost of both properties and rentals in Hobart, the prices remain low by comparison to bigger capitals, and particularly when compared to Sydney. And although incomes are considerably lower on the island, the price to income ratio is so much lower that moving to Hobart, or investing in property there, is still proving feasible.
In some cases, it would take more than half a century to balance out the difference in the property prices by applying the extra income earned in Sydney. And that’s far longer than the average Australian’s working life.
Hobart rises from the doldrums
Younger settlers and investors are not the only ones boosting the population and the property and rental prices. But they are forming a big part of the influx that has taken the Tasmanian capital from the doldrums right into a storm of growth.
Hobart recorded the sale of 624 properties during the first two months of this year. Its price growth saw it shooting to 34th place on the 2017 Global Residential Cities Index of price changes in global properties with a price growth of 11.3% between March 2016 and 2017. And the trend is not expected to stop for the next year or two.
Hobart Property Management company welcomes influx
Baxton Property Management with branches throughout Hobart central and the surrounding suburbs keeps its eye sharply on property investment in Hobart. This helps it to uphold its standing as one of the best property management companies to manage properties there. And it does so for the benefit of both a large number of property owners and their tenants. Learn more about Baxton Property Management in Hobart on our website.
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We hope you enjoyed this article
The information contained in this article is based on the authors opinion only and is of a general nature which is not indicative of future results or events and does not consider your personal situation or particular needs. Professional advice should always be sought relevant to your circumstances.
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