Almost everyone involved in property has made money in recent years.
Almost everyone involved in property has made money in recent years.
The year ahead may well deliver more of the same, however at some point the market will soften, and this needs to be considered by any investor or buyer.
The commodities boom has increased prices by placing extra pressure on labour costs and on wages. This boom will come and go, but the focus should be placed on the trends that will remain when this economic pressure subsides.
With this in mind, the demographics of an ageing population warrants serious consideration.
Upon retirement there are numerous choices to consider. Everything from a suitable location to the type of housing will come under the microscope. Understanding the choices available and the likes and dislikes of this demographic provides a valuable insight into the future directions of the property market.
So what type of property is the retiree looking for that isn’t easily replicated?
Beachfront, riverfront apartments, with high quality fit-out will be keenly sought.
Developments that combine the scarcity factor of supply with lifestyle opportunities, and also user friendly building design will prove to be a winning combination.
A location where large quantities of apartments can be built will place less pressure on prices due to the potential to increase the volumes of supply.
Lifestyle options including shops, medical facilities and transport, will be of particular value, especially if within walking distance.
And while the importance of living close to schools will diminish, accessibility to cafes, restaurants and social meeting places becomes a high priority.
Building design becomes more critical, with security and function becoming increasingly important.
A home with living areas, main bedroom and bathroom facilities on the ground floor is imperative. Grandchildren can always stay upstairs when they come over.
Safety, security and a sense of community are all very important. More leisure time and a willingness to integrate with others are also key factors when retirees choose a property.
Investment always looks forward and with an ever-changing market understanding factors affecting change arms the investor with crucial information. As always, change creates opportunity, but it will only be certain areas of the market that will move ahead.
Investing successfully in the next five years means being in the area of the market that is going forward and not just being in the market.
• Scott Watters is marketing manager at Hegney Property Group.
