The impact of working from home on the Australian property market

The shift to remote work has reshaped Australia’s property market, influencing where people live, what they look for in a home, and how investors approach opportunities. As flexible work remains a priority, new trends continue to emerge.

The rise of working from home (WFH) has significantly transformed Australia's property market, influencinghousing preferences, regional growth and investment strategies. According to the ABS, 36% of employed Australians regularly work from home, a substantial increase from pre-pandemic figures. This shift has led to notable changes in where and how Australians choose to live.

1. Evolving housing preferences

With more Australians working remotely, there's a heightened demand for homes that accommodate this lifestyle. Key trends include:

Dedicated workspaces: homebuyers and renters now prioritise properties with extra rooms or adaptable spaces suitable for home offices.
Outdoor areas: the desire for yard space has grown, especially among the many Australians who acquired pets during the COVID-19 lockdowns. Notably, pet ownership in Australia has reached an all-time high, with approximately 69% of households now owning a pet.
Enhanced connectivity: reliable high-speed internet has become essential, making properties in areas with robust digital infrastructure more appealing.
Smart home features like automated lighting, security, and energy-efficient upgrades add value to properties for remote workers.

‍

2. The rise of regional & outer suburban markets

The flexibility of WFH has diminished the necessity to reside near central business districts, leading to a population shift toward regional areas and satellite cities. Notable trends include:

Increased demand in satellite cities: cities such as Newcastle, Wollongong, and the Sunshine Coast have experienced significant population growth. For instance, Albion Park near Wollongong and Singleton in the Hunter region have become attractive due to their affordability and lifestyle offerings.
Infrastructure improvements, such as faster internet, co-working hubs, and transport upgrades are further supporting this trend.
Investors should look at rental yield by suburb to find dual-income properties and growth areas benefitting from WFH migration.
Property value appreciation: these regions have seen property values rise, driven by an influx of buyers seeking more space and a balanced lifestyle.

3. Implications for property investors

The WFH trend presents both opportunities and challenges for property investors:

Strategic investments: investing in properties within growing regional areas and satellite cities can yield substantial returns. However, it's crucial to conduct thorough research on local infrastructure developments, employment opportunities, and community amenities.
Adapting to tenant needs: properties that offer features catering to remote work—such as dedicated office spaces, reliable internet connectivity, and pet-friendly amenities—are likely to attract long-term tenants.
Risk management: while regional investments can be lucrative, they may also carry risks such as limited tenant pools or economic dependencies on specific industries, such as some mining areas or tourism hotspots have proven historically. Diversifying investment portfolios and staying informed about regional economic trends are essential strategies that DPN can help you with.

‍

Properties that offer features like dedicated office spaces, reliable internet connectivity, and pet-friendly amenities are likely to attract long-term tenants.

Conclusion

The shift toward working from home has undeniably reshaped the Australian property landscape. However, the future remains uncertain as there is a push from large corporates and government bodies to bring workers back to the office. Some governments are even proposing mandates for public sector employees to return full-time. While this policy direction could impact WFH trends, many workers are expected to remain remote or hybrid, ensuring continued demand for properties catering to flexible work arrangements. For investors, understanding these trends and adapting accordingly is key to capitalising on the changing market.

‍

VIEW ALL ARTICLES