The Evolution of Property Investment: Trends Shaping the Future
Sustainable developments and eco-friendly housing
Amidst growing concerns about climate change and environmental sustainability, there’s a rising demand for sustainable developments and eco-friendly housing options. This heightened awareness has propelled homeowners to seek properties that minimise their carbon footprint and promote environmentally responsible living.
From energy-efficient design features to eco-conscious building materials, developers are increasingly incorporating sustainable practices into new construction projects. Additionally, existing homeowners are retrofitting their properties with green technologies and implementing environmentally friendly practices including the use of solar power, green walls, rainwater harvesting systems, and energy-efficient appliances.
As sustainability continues gaining prominence in the real estate market, properties with eco-friendly features will likely attract greater interest and command premium prices
More Millennials
The landscape of the Australian property market is undergoing a significant transformation, driven by shifting demographics. Millennials, typically born between 1981 and 1996, represent the largest cohort in Australia and are now entering the property market as first home buyers.
Millennials are reshaping long-term real estate trends in Australia’s major cities, where skyrocketing property prices have impacted housing options. Many Millennials prefer flexibility over committing to mortgages, opting for alternative investments like the share market. This preference drives demand for ‘Build to Rent’ apartments, ‘Build to Sell’ owner-occupier apartments, and alternative housing types like townhouses and terrace houses. As Millennials influence the market, developers are adapting to cater to their preferences, ushering in a new era of real estate dynamics.
Digital transformation and PropTech
Technology continues to have an impact on real estate transactions, where virtual tours, augmented reality, and artificial intelligence revolutionise how properties are marketed, sold, and bought.
The Australian property market is experiencing a boom in PropTech, with startups and established businesses leveraging technology to enhance efficiency and transparency. By leveraging advanced technologies like AI and blockchain, PropTech provides investors with better access to data, more streamlined transactions, and enhanced market transparency. This leads to more informed decision-making, reduced costs, and increased liquidity in real estate assets.
For example, the use of smart contracts in real estate transactions is expected to save $3.5 trillion in transaction costs by 2030, while blockchain-based real estate transactions are expected to account for five percent of all global real estate transactions by 2030.