Movers and Shakers ONE IN 10 AUSTRALIANS HAVE MOVED DURING THE PANDEMIC, WITH MANY LEAVING THE CAPITAL CITIES FOR GREENER PASTURES. SO WHAT DOES THAT MEAN FOR HOUSE PRICES IN 2022? A BEHAVIOURAL ECONOMIST EXPLAINS.
COVID-19 ABRUPTLY and radically changed the way Australians do business. Given the opportunity to work remotely, it seems many Australians re-evaluated their living situation and chose to leave the big smoke behind. Australian Bureau of Statistics data shows that capital cities had a net loss of 11,800 people in the March quarter — the largest quarterly net loss on record. There’s also been significant movement between the states. In the year prior to April 2021, Victoria lost 42,900 people, New South Wales reported a modest growth of 11,700 people (this was before the state’s extended lockdown) and Queensland gained 43,900 residents. At the same time, international border closures put a halt on overseas migration, slowing population growth to a near standstill. It remains to be seen whether this drift away from the capitals is permanent. As life returns to some sort of normality, employment opportunities and amenities in major cities may entice people to return. That said, we know that when people experience change for the better, it can be extremely difficult to persuade them to go back to something they perceive as less desirable. NAB research suggests that almost one in 10 Australians 22
THE LUXURY REPORT | SUMMER 2021/22
Where we live can have a real impact on our wellbeing.
have moved within their own state or territory, or to another one, because of Covid-19 and are not planning to return. This presents a real opportunity for certain regional areas to become greater hubs of economic activity and to encourage more Australians to live in them long-term. That said, there may be significant challenges in terms of land use and infrastructure planning, most notably in South East Queensland. NAB asked those who had moved, or planned to move, what prompted their decision. Four in 10 said it was for “lifestyle” reasons (this response was particularly popular with those in South Australia and Queensland). Around three in 10 cited “wellbeing” or “employment” and just over one in four wanted to be closer to family and friends. Three in 10 of those surveyed said Covid-19 played a key role in their decision. Where we live can have a real impact on our wellbeing. About seven in 10 Australians told us that they currently live in an area or region they really want to be in, with four in 10 having managed to purchase property there. Queensland and Western Australia had the greatest number of people who had purchased property in their desired location; NSW had the smallest.
ILLUSTRATION: COL MCELWAINE GRAPHICS: KIRSTEN BURGHARD
BY DEAN PEARSON, HEAD OF BEHAVIOURAL AND INDUSTRY ECONOMICS, NAB
