It seems that house and land packages have skyrocketed in popularity, with 40% of buyers in Australia’s outer suburbs opting for one over an established home.
According to research by Five Squared Property Group, which analyses factors behind the boom of the outer suburbs and Australia’s perception of house and land packages, Australians were found to be more enthusiastic about the package deals than ever. Specifically:
73% of Australians agree they “would recommend a house and land package to their friends and family”
86% of respondents believe house and land packages are a viable way to own a dream home at an affordable price point
82% of respondents agree house and land packages are more appealing because of improved infrastructure in outer areas.
Case in point is Five Squared Property Group’s Katandra Rise, which saw its fourth and fifth stages, Bailey and Tucker, both sell out before construction commenced. This year the Duke and Cooper
stages both reached 90 percent sold within four weeks of release.
Mr Lewis explained, “These results are a stark contrast to say 15 years ago when house and land packages were viewed as a last resort to get into the property market," Mr lewis said.
"There was a perception that house and land packages lacked community and were isolated, but that’s changing now. As Melbourne’s outskirts continue to undergo infrastructure and amenity upgrades, the number of people living in the outer suburbs will rise.
“As our data indicated, with infrastructure catching up to development in our cities’ fringe areas and towns become more established, moving to the outer suburbs is becoming more appealing.
"With Melbourne’s population expected to be over 10 million by the 2050s and demand for housing increasing, I suspect the number of buyers opting for house and land packages will continue to intensify,” Mr Lewis said.
While the survey found affordability to be the stand-out factor for people making the move to the outer suburbs, green open space, improved roads and infrastructure, and a house and yard for children and pets were also high on the list.
Interestingly, the data also showed three out of four people who bought in the outer suburbs believe living within an existing community was key to their buying decision.
“People desire a local community that they can plug into. That’s why existing communities have been a top priority for us when purchasing sites for our projects, Katandra Rise and BLOOM – both are surrounded by established schools, sporting clubs, and supermarkets,” Mr Lewis said.
“House hunters are still looking for a home where their family and even their pets can live out the great Australian dream surrounded by the great outdoors. The only difference is that in 2016, they’re opting for affordable, yet to be built options which are connected to established communities.”
Other key findings
Australians believe green, open space is the second most important factor when it comes to living in the outer suburbs, second only to affordability. Green space is particularly significant to home buyers under 35 – a key target market for property developers in the outer suburbs as it’s this cohort who are seeking spacious family homes for children to grow up in.
4/5 people who live in the outer suburbs said a house/yard for their children was important. Those aged between 24-45 were the most eager to have a backyard for a dog – 45% said it was very important.
85% of Australians who live in the outer suburbs said improved roads and infrastructure were an important factor in their decision to move to the outer suburbs.
