THEY SAY THAT THE ONLY constant is change, and this is especially true of real estate. Architectural preferences change, new materials become available, construction methods take advantage of the latest technology, home layouts become more in tune with demographic and social changes, and many other factors begin to influence what buyers want – and how real estate professionals should market property. Steve Mallach looks at the trends that are currently shaping the homes you sell.
WHILE REAL estate trends tend to evolve a little more slowly than those affecting fashion or food. When they do though, they tend to have a significant impact on how investors view properties, which can have an impact on how you go about selling the benefits.
In 2016 five trends look set to influence real estate in Australia:
1 TOUGHER, MORE SUSTAINABLE DESIGN
2016 will see the trend towards the use of more environmentally friendly and renewable materials become even more pronounced. Australians are becoming more aware of the looming scarcity of resources in a world that is being exposed to the runaway effects of climate change. The push for sustainable building practices, the popularity of products made from renewable resources and the use of natural, ecologically friendly material will continue to remake the real estate landscape.
Sustainability is also set to influence the generation of power. Solar and wind power will start to become the norm rather than the exception, so expect to see the retrofitting of existing homes with solar and other technologies becoming standard for new builds.
At the same time, the unique flora and fauna of Australia will be celebrated in tones and colours, as well as the use of natural materials for interior design and finishes.
New homes will be better able to withstand natural disasters caused by climate change. The devastating effects of bushfires are motivating many architects to design residential homes that are engineered to be fire resistant and, more importantly, ecologically friendly. Expect to see more designs based on this ‘first do no harm’ philosophy.
Examples of an architectural approach which focuses on sustainability are already cropping up across Australia. The eco-friendly passive Bush House by Archterra Architects is nestled in the Australian outback near Margaret River in Western Australia. This home blends environmental sustainability with contemporary luxury. The property also showcases how natural materials are increasingly being used in interior design. The Bush House features the use of wood – including recycled Jarrah wood planks used on the outdoor decking and the interior, and Australian Hoop Pine to line the ceilings.
Australians can look forward to a trend that sees more natural and sustainable materials being used in properties in urban areas. You may find that the trend towards sustainable design will allow sellers to charge a premium for their properties and that buyer demand for authentic Australian designs and interiors will continue to grow. The move towards solar and other alternative electricity-generation systems will be seen as adding value to homes by reducing costs.
The trends towards building tougher homes that are better able to bear the brunt of natural disasters also have far reaching consequences for home insurance. The less likely the property is to succumb to bush fires or storms the lower the insurance premiums – another great selling point. For this reason agents can expect savvy buyers to ask about construction methods and materials.
2 AFFORDABILITY
With property prices skyrocketing, buyers are demanding homes that boast the best quality materials despite many having a limited budget. This has led to the development of materials with a luxury look and feel but costing far less. A good example is the use of natural stone. This option is expensive and adds significantly to construction costs – but alternatives such as stone veneers are becoming increasingly popular. Real estate professionals should expect to see affordable quality become the norm, rather than the exception.
Why this is important: The availability of these new materials and finishes is especially important when the agent is faced with buyers in search of a ‘fixer-upper’. Valuations increase dramatically when the client is made aware of relatively inexpensive renovation options. These products are becoming increasingly widely available, as well increasingly durable – ideal for Australian conditions. The modular nature of the components can also save the client significant amounts of money in terms of labour costs, which is another great selling point.
3 WATER-SAVING MEASURES AND APPLIANCES
Between late 1996 and mid-2010 Perth, Adelaide, Melbourne, Hobart, Canberra, Sydney and Brisbane were all affected by the so-called ‘Millennium Drought’. With the effects of El Niño and climate change becoming more pronounced it seems likely that the country will continue to experience periodic dry conditions, making water conservation an ever-present worry for those purchasing landed property.
Faced with stiff fines, property owners in many major cities have been encouraged to install systems such as low-flow showerheads and dual flush toilets, as well as facing limitations on irrigation. Highly efficient metered watering systems are becoming increasingly popular with homeowners. For many, the Australian outdoor lifestyle has come under threat, with some cities experiencing periodic restrictions on the use of water to fill pools. In response to these conditions rainwater tanks are becoming popular options for those building or buying a new home.
Why this is important: Property professionals are going to find that water-wise homes will be increasingly attractive to buyers and renters. Additions such as water tanks mitigate the effects of water restrictions and add to the quality of life of homeowners, as well as allowing them to avoid fines. Property professionals will want to note that the trend towards smaller swimming pools may accelerate, while those homes that can avoid the penalties and restrictions that apply to filling pools over 10,000 litres in capacity may have the edge over properties that have larger, deeper and older pools.
At the same time properties which have below-ground, metered irrigation systems and a garden filled with native, drought-resistant plants will prove more attractive to buyers of homes with larger gardens.
4 GREATER CHOICE OF MATERIALS AT BETTER PRICES
New manufacturing methods, such as 3D printing, are about to revolutionise the availability of prefabricated materials. Although not yet widely used for the manufacture of prefabricated material, 3D printing – which has been called the ‘Third Industrial Revolution’ – is set to provide homeowners with viable, value-for-money alternatives to custom materials and expensive building techniques.
This isn’t science fiction – 2016 will see an entire printed house manufactured from nylon being built in Amsterdam. 3D printing in the construction industry is set to eliminate wasted materials and reduce transport costs as designs can be printed locally.
This technology may not have reached maturity – but the trend seems to be gathering momentum.
New manufacturing techniques are also making sustainable materials such as glass even more attractive to homeowners by providing greater choice when it comes to colours, textures and sizes. These techniques make it possible to produce patterned glass and etched surfaces, and even allow for LED lights to be built into glass panels.
Why this is important: Expect these types of technologies to reach Australian shores within the short to medium term. 3D printing will allow homeowners to produce unique, highly personalised homes, including interior decorating highlights at a fraction of the cost of today’s products. Homes that feature special one-off finishes to kitchen counters and bathroom fittings may provide sellers with just the right differentiating factor needed to separate the functional or run of the mill from the highly desirable.
5 RECLAIMED WOODEN FLOORING
For most homeowners there’s no substitute for authenticity. It’s all very well extolling the virtues of a modern material that is durable and light on the pocket, but many still crave the real thing. The demand for authentic wooden flooring is only one example of this trend – but with a difference – a growing trend towards recycling timber flooring which has been sourced from existing houses, schools, churches and warehouses.
For many buyers this flooring is a way to bring a piece of history into their homes while providing an opportunity to express their individual style and taste.
Why this is important: These types of flooring give a property a dose of real individuality – a characteristic that is extremely bankable. Real estate professionals can expect increased demand for homes that boast unique features, and reclaimed flooring certainly contributes to this while also providing a warmth and ambiance that is much appreciated by discerning buyers.
These are only some of the trends that are set to affect property in 2016. Keeping up with what buyers and sellers want in an ever-evolving environment is a top priority to getting best price for your vendors’ homes.
