Atlas Market Insights

anything to go by, there will not be a great deal of economic disruption. I’m expecting after March we will see the rate of jobs growth slow down temporary, and unemployment may creep up for a little while, but I doubt this will be permanent. As long as we see the economic recovery continue, jobs will be created, and unemployment will trend lower. Either way, this will be a very gradual process. How have immigration rates impacted the market? Borders have closed, but there is still substantial demand from buyers internationally. One of the largest segments is expats who are looking to return home, often looking in premium areas in capital cities. It is hard to measure if expats have impacted the market, but from anecdotal evidence I believe they have. Returning expats fly under the radar in migration data, so it is difficult to see what the demand impacts are. However, real estate professionals state that this is a factor in the marketplace. This makes sense that we would see more people returning to Australia, as we have broadly done a good job at managing the virus and keeping outbreaks contained. Although there is optimism from overseas buyers, the rental market is suffering due to closed borders. 60% of Australia’s population growth comes from overseas migration, including temporary migrants such as students, and permanent migrants. All migrants tend to rent when they first arrive in Australia, which has strongly impacted inner-city apartment rental demand. What impact, if any has the pandemic had on housing preferences? There has been a shift in the market towards low density housing. In Brisbane, the distribution of house purchases and unit purchases has a decade average of roughly 71% of purchases being of houses. In January 2021, the distribution changed to 77% of activity being house purchases. A 6% jump may not seem important upon first inspection, but it increased so rapidly that it is indicative of a change in preferences for buyers. This is largely driven by first home buyers as they are often the most reactive to government stimuli. The change to the stimulus in 2020 which meant that stamp duty is now exempt for properties up to $750,000 compared to $650,000 previously now means that first home buyers can purchase above the Brisbane median property price of $720,000 without stamp duty. This opens up many more low-density options, which may have spurred the shift to houses. 9