COVID

EXPERT OPINION

COVID-19 has changed the world in ways that will never be undone, and just as we&rsquo;ve adapted to the &lsquo;new normal&rsquo;, we&rsquo;ve also acquired a new perspective on how we view our homes.

Up until recently, the notion of spending every hour of every day for months on end cooped up inside your home - with your entire family - would have seemed absurd, and a little terrifying. For many, our sanctuaries became stressful cesspools, as work, school, and play became compressed inside our four walls. It&rsquo;s no wonder Australians are spending a record one billion dollars a month on renovations.

COVID lockdowns have magnified the niggling inadequacies of our homes and caused shortcomings we previously overlooked to become daily bugbears. The old desk shoved in the spare room doesn&rsquo;t cut it as a functional space to work from home, the kitchen counter can&rsquo;t double as a classroom for weeks on end, and the low maintenance yard, for those of us lucky enough to have one, doesn&rsquo;t add much spice to a life that&rsquo;s become infinitely more constrained. COVID&rsquo;s forced us all to re-evaluate many aspects of our lives, and one big-ticket item is our home. Homeowners are realising the importance of having a space that&rsquo;s far more functional and comfortable to inhabit.

Research by Stockland reveals almost three quarters of Australians are rethinking their living situation, while 80% say they&rsquo;re more aware of how their home and environment affects their wellbeing, and 10% are currently planning to move to a new dwelling that better suits their needs. But what are these needs exactly?

<img alt="" height="634" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/lennox_pool_.jpg" width="1200" /> 
The swimming pool in The Lennox in Parramatta. Image supplied

Health and wellbeing

Pre COVID-19, most of us had never given aerosols the slightest thought, but no doubt anyone living in an apartment this past year has wondered at some point what airborne intruders might be wafting under the door or through the vents. Air purifiers sold out during the Black Summer bushfires, and who can forget the Sydney water crisis in the late 90s, which forced millions of residents to boil their tap water due to parasite contamination.

Lockdown has increased the intimacy we have with our homes, and our reliance on them. A simple investment like a water purification system for a building project can pay dividends. Some reports suggest 70% of buyers would be willing to spend an extra US$1,000 for air and water filtration systems alone in a property. Developers shouldn&rsquo;t underestimate the pull of such features when marketing their properties. Relatively small investments like these can have a big impact on how desirable the property is to buyers. Other ways to stand out when marketing your property include offering low VOC paint options, antimicrobial surfaces such as benchtops and handles, and even low allergy flooring.

Biophilic design is becoming a must too. It aims to integrate nature into the built environment and improve the wellbeing of occupants. Numerous studies have shown the stress and wellbeing benefits of indoor plants, and incorporating greenery and functional outside spaces into your design is another simple way to entice buyers. For those looking at the prospect of apartment living, simply having a space to take your child for a quick play without having to leave your address can be very valuable. But the space must be functional and appeal to the target demographic of your project. Communal spaces should not be a &lsquo;cut and paste&rsquo; addition, they should be designed with the buyer in mind.

With the Waterbrook Retirement Lifestyle Resort, we created a sense of serenity and calm by incorporating floor to ceiling windows and skylights to flood shared amenities with natural light and sustain a variety of plants inside the building. Knowing the residents would rely heavily on the communal spaces for their leisure time, we wanted to create a serene and pleasant environment that feels like an extension of their private residences.

Bespoke design at an affordable price

One factor hampering apartment living is the often the dull, generic, and limited design alternatives on offer. You only have to look at the lacklustre performance of some developments in areas like Zetland, Waterloo in Sydney, or Docklands in Melbourne to see that poor standards or a glut of cookie-cutter options puts buyers off. But, by adding some smart features and options you can position your property as a preferable alternative to others on the market.

Increasing fitout and design options usually increases costs and complexity of the build, but it doesn&rsquo;t have to. When designing The Lennox, we wanted to ensure buyers at every price point felt like they could make their space their home.

[smartcode_project:default project_id=5743 project_image_fid=82396]

We were able to offer six variations of the two main themes offered: sleek and classic. We did this by selecting colours and materials that worked well together in a variety of combinations, which allowed us to turn the usual two- tone option into several alternatives for buyers. We also selected a different plank width and installation pattern for a more opulent feel in the larger apartments. We offered ceramic and marble alternatives in a single tile pattern and gave options for the benchtop stone to be wrapped around the island in place of wood to create a more luxurious effect for buyers who wanted it. By implementing clever design, we were able to maximise choice for buyers, while maintaining a streamlined process for the developer and builder.

Customisable design is another string in your marketing bow. Buyers conduct about 90% of their research for a new home online, so having customisable options to show in your sales collateral is a huge plus for your project. Creating a design that&rsquo;s tailored to your project&rsquo;s demographics doesn&rsquo;t need to be difficult, you just need to select a good designer who can create a unique identity for your project that will catch the eye of the right buyers.

About Lorena

Lorena is an award-winning interior designer with more than 20 years&rsquo; experience designing for property developers, including several Fortune 500 companies, in the US, China, and Australia.&nbsp;

Some of her most recent projects here include&nbsp;The Lennox&nbsp;in Parramatta for which she won a Gold Nugget Award, and the&nbsp;Waterbrook&nbsp;Retirement Lifestyle Resort in Bowral. She also has an extensive&nbsp;portfolio&nbsp;of work for individual homeowners. Lorena&rsquo;s based in Sydney where she heads an all-female team of interior architects and designers.&nbsp;

One factor hampering apartment living is the often the dull, generic, and limited design alternatives on offer

Joel Robinson

What the ‘new normal’ means for developers as buyer expectations shift: Interior designer Lorena Gaxiola

The NSW Government has ruled that residential tenants will have greater protection during the escalating lockdown with a targeted eviction moratorium.  

Additionally residential landlords who decrease rent for impacted tenants can apply for a grant of up to $1,500 or land tax reductions depending on their circumstances.
 
Commercial and retail landlords will need to attempt mediation before recovering a security bond, or locking out or evicting a commercial or retail tenant impacted by the Public Health Order.

Commercial, retail and residential landlords liable for land tax will be eligible for a land tax concession where they reduce the rent of their tenant.

The temporary tenancy moratorium introduced in 2020 to restrict when landlords could evict tenants due to rental arrears as a result of COVID-19 ended on 26 March 2021.

From 27 March 2021, a six-month transitional period had begun.

The six-month transitional period saw COVID-19 impacted tenants who accrued rent arrears between 15 April 2020 and 26 March 2021 not being subject to the standard tenancy eviction rules for those arrears.

Tenants and landlords were being assisted by Fair Trading to negotiate repayment plans for arrears accrued during the moratorium period. Under the transition landlords were only be able to evict these tenants for these arrears if they have first attempted in good faith to negotiate a repayment plan. 

It also has to be fair and reasonable to evict.

If a landlord and tenant have agreed to a repayment plan, the tenant cannot be evicted unless they have failed to meet agreed repayments on two consecutive occasions.

COVID-19 impacted tenants are also permanently protected from being listed on tenancy databases for arrears accrued during the moratorium period.

Landlords were able to terminate any tenant under standard provisions for arrears accrued after the moratorium measures ended on 26 March 2021.

The NSW Government has announced the new support for landlords included up to $210 million in grants to eligible landlords.The land tax relief will be equal to the value of rent reductions provided by landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability.
 
Minister for Better Regulation Kevin Anderson said the short-term tenancy and landlords support package will provide renters and landlords with immediate assistance during the COVID-19 lockdown.
 
“These measures hinge on landlords and tenants working together through this challenging period and we encourage both parties to enter negotiations in good faith.
  
For more information visit: https://www.fairtrading.nsw.gov.au/

The latest eviction measures were announced by the NSW Government amid an economic support package worth billions of dollars aimed at helping businesses and people right across the state fight through the current COVID-19 lockdown.
 
The commitment will now be up to $5.1 billion, including more than $1 billion from the Commonwealth as part of a business and employee support program.
 
The business grants program announced two weeks ago has been expanded, with grants between $7,500 and $15,000 available to eligible businesses with annual wages up to $10 million. 

A new grant program has also been introduced for smaller micro businesses with turnover between $30,000 and $75,000.



Residential landlords who decrease rent for impacted tenants can apply for a grant 

jchancellor-FAypfDUnLy

Sydney apartment tenants secure eviction moratorium in lockdown measures

The Lewis Land Group are providing its staff of 650 with two days paid vaccination leave.

The aim was to encourage their whole team to get the jab as soon as possible, its chief executive, Matthew McCarron said.

&quot;We know that the only pathway out of the dangerous and disruptive cycle of lockdown is via vaccination.&nbsp;

&quot;We also believe that it&rsquo;s incumbent on all businesses &ndash; big and small &ndash; to support the acceleration and advancement of this effort.&quot;

Lewis Land have also offered sites as community vaccination hubs.

Lewis Land Group is Australia&#39;s oldest private property developer having been founded by Bernard Lewis in 1957.

[smartcode_project:default project_id=32227 project_image_fid=93945]

It has since developed more than 20,000 residential lots including land at Endeavour Hills in Melbourne and Campbelltown in Sydney.

In the 1980s it developed waterfront canal and inland island developments such as Paradise Point Keys, Huntington Harbour, Key Biscayne, Grand Canal, Biggera Waters and Runaway Islands.&nbsp;

&quot;The crown of these was The Sovereign Islands, followed by Ephraim Island,&quot; their website advises.

Its current major project is Sovereign Hills is a mixed-use master planned community in Port Macquarie, which will have 2,400 lots plus a 25,000 sqm town centre with retail, commercial and leisure space, schooling and childcare, recreational facilities, and parklands.

The display village at Sovereign Hills was newest opened last April by Minister for Housing Michael Sukkar with 14 builders and 21 homes, the largest village between Newcastle and the Gold Coast.&nbsp;

Lewis Land Group are providing all 650 staff with two days paid vaccination leave to encourage their whole team to get the jab as soon as possible

Lewis Land Group lead property industry with Covid vaccination leave initiative 

From Tuesday 13 July 2021 you must wear a fitted face mask when you are in an indoor area of common property in a Sydney residential apartment building.

It covers strata titled, community titled and company titled complex.

Residents do not need to wear a mask inside their apartment.

It comes as a block of 29 apartments in Sydney's east has seen a covid breakout within five apartments in the complex.

The common areas where you must wear a mask include: 

a shared foyer or lobby of an apartment block; the lifts, stairwells and corridors and shared laundry facilities.

Masks must be worn by anyone entering including residents and visitors, building managers, concierge staff and cleaners.

Masks must also be worn by people providing goods and services including tradespeople and contractors along with people delivering food, mail and parcels. 

From Tuesday 13 July 2021 you must wear a fitted face mask when you are in an indoor area of common property in a Sydney residential building 

Masks compulsory from July 13 on Sydney apartment common property

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Expert Observer

The standout feature of the behaviour of our politicians is the degree to which they are out of touch with their constituents and the impact of the decisions they make.

In the real estate sphere, the most startling recent example was the knee-jerk decision-making of state and territory governments in favour of pandemic-affected tenants, without any regard for the impact on the mum-and-dad households who own an investment property.

Equally, our elected representatives collectively appear oblivious to the rental shortage crisis that exists in most (not all) locations across the nation.

The situation has become dire in many parts of Australia, with queues of prospective tenants showing up at open houses and candidates offering more than the asking rent and/or offering to pay six or 12 months in advance to beat the competition.

Here’s the current situation …

According to the monthly report from SQM Research, vacancy rates in our already-tight rental markets fell in six of the capital cities and were unchanged in the other two in January.

The national average vacancy rate fell from 2.2% in December to 2% in January, but five capital cities – Perth, Adelaide, Canberra, Darwin and Hobart – all have vacancy rates below 1%, while Brisbane sits at 1.7%.

[smartcode_project:default project_id=8240]

Throughout regional Australia, many centres have vacancy rates below 1% in what represents a national rental crisis for people seeking tenancies. It’s common to find regional locations where the vacancy rate is closer to zero than to 1%.

Keep in mind the industry benchmark is that vacancy rates below 3% represent a shortage of rental properties. Below 1% is a dire situation.

The two biggest cities, where vacancies are highest, showed marked improvements in January, with Sydney falling from 3.6% in December to 3.2%, and Melbourne falling from 4.7% to 4.4%.

SQM CEO Louis Christopher says the figures provide more evidence the worse is over for landlords in the Sydney and Melbourne rental markets. 

He says: “The falls in vacancy rates for the month in those two cities, combined with the increased tightness in other cities and regions, has now brought rental vacancy rates down to below where they were prior to the outbreak of Covid19.”

Christopher says the data, overall, suggests that 2021 will remain largely a tenant’s market in the inner-city areas of the biggest cities “but will also very much remain a landlord’s market for regional Australia”. It would add to that the smaller capital cities – as shown earlier, six of them have ultra-tight rental markets. 
He also notes that rents for both houses and units have risen in the capital cities, on average, over the past month.

In annual terms, the national average is a 10% rise in house rents and a 4% increase in apartments rents.

The growth has been higher in regional markets than in the capital cities, with Sydney and Melbourne rents still lower on average than a year ago.

But there have been strong rises in Perth, Canberra and Darwin.

[smartcode_project:default project_id=22017]

In Perth, rents have risen 11.5% for houses and 12.3% for apartments, while in Darwin house rents have increased 27% in 12 months. In Canberra rents have risen around 6% for both houses and units.

The repercussions are spreading well beyond the immediate participants, tenants and landlords. Businesses in regional areas are struggling to find the workers they need because people interested in taking the jobs on offer can’t find anywhere to rent in those areas.

So what are our elected representatives doing about that? Essentially, nothing. They give the impression that aren’t even aware of the problem. This situation is just not part of the national discussion.

Partly mainstream media is to blame. Our major newspapers, especially the Fairfax ones, have been focusing their coverage on the few places in the nation that have high vacancies, specifically inner-city Melbourne and inner-city Sydney and creating the impression that we have an over-supply of dwellings – which is laughable.

[smartcode_project:default project_id=6201]

Federal Labor, if they had their way, would make matters worse by scrapping negative gearing, which would be a huge disincentive to investors.

What we need is the opposite – measures to encourage people to buy investment properties and make them available for rental. Rental vacancies are an outcome of the activity of investor buyers – and their absence in recent years is a chief reason we have this crisis.

HomeBuilder is helping the situation by encouraging the creation of new dwellings, but more needs to be done.

If politicians want to help tenants, they need to encourage landlords – instead of treating property investors (most of them ordinary mum-and-dad households) as a criminal class.

Terry Ryder is the founder of hotspotting.com.au

ryder@hotspotting.com.au

twitter.com/hotspotting
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According to the monthly report from SQM Research, vacancy rates in our already-tight rental markets fell in six of the capital cities and were unchanged in the other two in January.



terryryder

Mum and dad investors hit by favourable COVID-affected tenant rules: Hotspotting's Terry Ryder

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Internal migration resulted in a net loss of 11,200 people from Australia’s capital cities in the September quarter of 2020, according to Australian Bureau of Statistics <a href="https://www.abs.gov.au/statistics/people/population/regional-internal-migration-estimates-provisional/latest-release">data</a> released this month. At the same time, some regional areas experienced significant <a href="https://www.abc.net.au/news/2021-01-04/house-prices-rise-1pc-regional-beats-capital-cities/13029268#:%7E:text=Annual%20data%20by%20real%20estate,research%20director%20Tim%20Lawless%20said.">growth in house prices</a> as <a href="https://thenewdaily.com.au/finance/property/2020/12/04/regional-australia-property-boom/">demand for properties</a> increased. So this has raised the questions: are we starting to see an <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2021-02-02/abs-data-confirms-city-exodus-during-covid/13112868">exodus from our cities</a>, and is this related to the COVID-19 pandemic?

To work out what is happening there are a few important things to consider.

<h2>In Australia we move a lot</h2>

The first thing to keep in mind is that Australia has one of the <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/2071.0%7E2016%7EMain%20Features%7EPopulation%20Shift:%20Understanding%20Internal%20Migration%20in%20Australia%7E69">most internally mobile populations</a> in the world. About 40% of the population change their addresses at least once within a five-year period. However, the level of internal migration within Australia has <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/2071.0%7E2016%7EMain%20Features%7EPopulation%20Shift:%20Understanding%20Internal%20Migration%20in%20Australia%7E69">fallen since the 1990s</a>.

The greatest fall has been for long-distance moves between Australia cities and regions, which <a href="https://www.abs.gov.au/statistics/people/population/migration-australia">declined by 25%</a> between 1991 and 2016. Moves between states and territories <a href="https://www.abs.gov.au/statistics/people/population/migration-australia">fell by 16%</a> over this period. An increase or decrease in internal migration from year to year is not unusual.

<figure class="align-center zoomable"><a href="https://images.theconversation.com/files/383668/original/file-20210211-19-dvgm7d.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="chart showing net internal migration figures from September quarter 2010 to September quarter 2020" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" src="https://images.theconversation.com/files/383668/original/file-20210211-19-dvgm7d.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" srcset="https://images.theconversation.com/files/383668/original/file-20210211-19-dvgm7d.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=420&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/383668/original/file-20210211-19-dvgm7d.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=420&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/383668/original/file-20210211-19-dvgm7d.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=420&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/383668/original/file-20210211-19-dvgm7d.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=528&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/383668/original/file-20210211-19-dvgm7d.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=528&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/383668/original/file-20210211-19-dvgm7d.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=528&amp;fit=crop&amp;dpr=3 2262w"></a>

<figcaption><a class="source" href="https://www.abs.gov.au/statistics/people/population/regional-internal-migration-estimates-provisional/latest-release">Data: Australian Bureau of Statistics, Regional internal migration estimates</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></figcaption></figure><h2>Putting the numbers into context</h2>

While the recent loss of 11,200 people from Australia’s capital cities is the largest on record, it’s not a significant proportion of the population. Australia’s population has grown and so we expect to see the number of internal migrants to grow too.

The net loss of 11,200 people from capital cities is only 0.06% of the <a href="https://www.abs.gov.au/statistics/people/population/regional-population/2018-19">total population</a> – 17.2 million – living in these cities. This is comparable to recent years.

While net loss – those arriving less those departing – is interesting, it is also important to consider the actual numbers of people who are moving to or leaving capital cities. The growth in the net loss of population from capital cities in the September quarter was not the result of a city exodus. What happened in 2020 was that fewer people moved into capital cities.

Drilling down further behind the headline data, we find Brisbane, Perth and Darwin all had net population gains. Brisbane has gained residents through internal migration in <a href="https://www.abs.gov.au/statistics/people/population/regional-internal-migration-estimates-provisional/sep-2020/3412055005DS0001_202003.xls">each quarter since 2014</a>.

The greatest contributor to the recent net quarterly loss of 11,200 was Sydney, with a net loss of 7,782 people. Melbourne was close behind with a net loss of 7,445.

While this might look alarming at first, Sydney and Melbourne are the largest population centres in Australia. And Sydney has recorded a net loss of population through internal migration <a href="https://www.abs.gov.au/statistics/people/population/regional-internal-migration-estimates-provisional/sep-2020/3412055005DS0001_202003.xls">every quarter for the past two decades</a>. Melbourne recorded net losses until 2012 and then since 2017.

Sydney and Melbourne’s overall population continued to grow over this period due to international migration. Population churn is part of the rhythm of these global cities.

The <a href="https://www.abs.gov.au/statistics/people/population/regional-internal-migration-estimates-provisional/sep-2020/3412055005DS0001_202003.xls">data</a> also reveal that, on average, regional Australia has been gaining population for many years – decades actually. Moving to regional Australia is not new.

The past year’s COVID-19 restrictions closed Australia’s borders to the previously <a href="https://www.abs.gov.au/statistics/people/population/migration-australia/latest-release#net-overseas-migration">large numbers of international migrants</a>. Without these international migrants moving to capital cities, the long-term trend of people relocating to urban areas around major cities has become more apparent.

<h2>Have the capital cities lost their appeal?</h2>

Just considering the September 2020 quarter, <a href="https://www.abs.gov.au/statistics/people/population/regional-internal-migration-estimates-provisional/latest-release">nearly 42,000 people</a> moved to capital cities. This is comparable to the March and June quarters of 2020.

This inflow is noteworthy. At a time when many capital cities had mobility restrictions related to COVID-19 in place, people were still moving to these cities. Australia’s capital cities <a href="https://www.abs.gov.au/articles/300000-more-people-living-capital-cities">have not lost their appeal</a>.

<figure class="align-center zoomable"><a href="https://images.theconversation.com/files/383690/original/file-20210211-23-ncinci.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="Table showing quarterly internal migration for greater capital cities in September 2019, June 2020 and September 2020" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" src="https://images.theconversation.com/files/383690/original/file-20210211-23-ncinci.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" srcset="https://images.theconversation.com/files/383690/original/file-20210211-23-ncinci.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=241&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/383690/original/file-20210211-23-ncinci.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=241&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/383690/original/file-20210211-23-ncinci.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=241&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/383690/original/file-20210211-23-ncinci.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=302&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/383690/original/file-20210211-23-ncinci.png?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=302&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/383690/original/file-20210211-23-ncinci.png?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=302&amp;fit=crop&amp;dpr=3 2262w"></a>

<figcaption>Click on table to enlarge. <a class="source" href="https://www.abs.gov.au/statistics/people/population/regional-internal-migration-estimates-provisional/latest-release">Data: Australian Bureau of Statistics, Regional internal migration estimates Feb. 2021</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></figcaption></figure>There is a risk in interpreting net migration from capital cities as an indicator of decreasing satisfaction with city lifestyles or a growing desire for rural lifestyles. It masks the <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BriefingBook43p/regionalpopulation">considerable variability</a> in the types of moves people are making, where they are going and why.

Outside of capital cities are a whole range of different community types. They range from expansive city areas such as the Gold Coast and Geelong through to tiny agricultural and fishing hamlets.

The <a href="https://www.abs.gov.au/statistics/people/population/regional-population/latest-release">fastest-growing areas outside capital cities</a> are those that offer sophisticated urban settings. They have diverse employment options and high-order social, education and healthcare infrastructure. So when people leave a capital city, more often than not <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Previousproducts/3218.0Feature%20Article12016-17?opendocument&amp;tabname=Summary&amp;prodno=3218.0&amp;issue=2016-17&amp;num=&amp;view=">they are moving to a large city</a>.

<h2>Will COVID-19 lead to growth in smaller centres?</h2>

Australia’s overall population growth has <a href="https://www.pmc.gov.au/sites/default/files/publications/planning-for-australia%27s-future-population.pdf">promoted the growth of capital cities and larger regional cities</a>. Some smaller communities, particularly high-amenity coastal towns, have also experienced periods of sustained population growth.

Distributing this growth further inland to smaller towns and cities is both possible and plausible.

A major barrier to population growth in smaller rural communities is the lack of diverse local employment options. For those who have made the transition to <a href="https://theconversation.com/coronavirus-could-spark-a-revolution-in-working-from-home-are-we-ready-133070">working fully or partially online</a> as a result of COVID-19 restrictions, <a href="https://theconversation.com/more-urban-sprawl-while-jobs-cluster-working-from-home-will-reshape-the-nation-144409">moving further from their workplace more permanently</a> – and perhaps to the country – could be on the cards.

<h2>So is there a pandemic-related exodus?</h2>

The COVID-19 pandemic is disrupting the way we live our lives but, no, there is not an exodus from Australia’s capital cities. For some, pandemic-related disruptions might have heightened their dissatisfaction with where they live. For others, working from home might have provided them with the opportunity to consider alternative living arrangements.

However, right now, given the data we have, it is unlikely that COVID-19 is driving a shift away from capital cities or city lifestyles.<img alt="The Conversation" height="1" src="https://counter.theconversation.com/content/154724/count.gif?distributor=republish-lightbox-basic" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" width="1">

This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/has-covid-really-caused-an-exodus-from-our-cities-in-fact-moving-to-the-regions-is-nothing-new-154724">original article</a>.

 

<h2>READ MORE:</h2>

<a href="https://www.urban.com.au/expert-insights/buying/regional-markets-see-a-significant-increase-in-value-corelogic" target="_blank">Regional markets see a significant increase in value: CoreLogic</a>

<a href="https://www.urban.com.au/expert-insights/buying/first-home-buyer-trends-will-2021-be-the-renaissance-of-the-suburbs" target="_blank">First home buyer trends: Will 2021 be the renaissance of the suburbs?</a>
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The 'exodus' from capital cities amounts to 0.06% of their populations – similar to recent years – and people are still moving to the cities. What's missing is growth driven by international migrants

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