Young Australians going big in smaller cities

Migration patterns are certainly turning upside down Down Under. Young Australians are leaving the big cities for smaller ones and bringing their peers with them.

Sandy Bay, Australia - November 30, 2017 /NewsNetwork/ —

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.

Kellee Pennicott, CEO of Baxton Property Management says “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.” Pennicott said. 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 34thplace 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.

With branches throughout Hobart central and the surrounding suburbs Baxton keeps its eye sharply on property investment in Hobart. And it does so for the benefit of both a large number of property owners and their tenants. For them the grass is certainly greener in Hobart.

Contact Info:
Name: Kellee Pennicott
Email: [email protected]
Organization: Baxton Property Management Sandy Bay 7005
Address: 147 Sandy Bay Road, Tasmania 7005, Australia
Phone: +61-3-6220-1900

For more information, please visit https://pm7005.baxton.me

Source: NewsNetwork

Release ID: 271270