One-in-three buyers are more likely to purchase a second home as a result of the pandemic, with signs units are re-entering the residential spotlight, according to a global report.
The appetite for property has extended to apartments with demand increasing from 12 to 19 per cent in the past year, according to Knight Frank’s Global Buyer Survey.
This reflected an increase in demand for both larger, more spacious apartments, and small, pied-à-terre units in city centres.
This was good news for developers as apartment prices have remained relatively steady in comparison to booming house prices.
Branded residences also increased in popularity with 45 per cent of respondents in Australasia willing to pay a premium for this style of product.
Compared to other countries in the survey, global respondents were looking to move back to city centres, whereas Australians were looking for lifestyle and relocation options.
Knight Frank's head of residential Shayne Harris said the survey and the sales results in the Australian market during the past 12 to 18 months showed the continually increasing appetite of buyers for both primary and secondary homes.
“Whether buying or renting, the pandemic has caused Australians to prioritise space in their apartments and houses, with a willingness to spend big to achieve this,” Harris said
“The gap between buyer demand and appropriate property supply is widening, with construction difficulties weakening supply and rising costs creating a highly pressurised buying environment in some instances, often driven by FOMO from buyers.”
The demand for apartments, particularly in the inner-city was heavily reliant on migration, with vaccination targets finally indicating a potential end to international border closures in the near future.
Covid cases were still wreaking havoc on the market with clearance rates dropping drastically, according to SQM Research.
However, NSW, the state with the highest cases of Covid and longest running restrictions in the recent wave, had a clearance rate at 70.6 per cent on the weekend.
This compared to Melbourne at 26.7 per cent, Brisbane at 26.2 per cent and Canberra at 58.2 per cent.