Now for the big dilemma: Office or anywhere?
Australians who ditched the concrete jungle for quieter, greener pastures are being caught out by return-to-work plans.
Australians who ditched the concrete jungle for quieter, greener pastures are now facing return-to-work plans as employers introduce hybrid work models that require some days in the office.
As states lift restrictions on CBD work and begin planning for a “new normal”, some workers who purchased properties in regional areas may need to sell or rent them out so they can return to the city.
It’s early days, but SQM Research predicts the trend back to headquarters will be in full swing in about six months.
“By and large, there will be more people coming back providing we don’t have any more lockdowns,” research director Louis Christopher says.
He says the move has been prompted not only by the need to return to the office but also the realisation that regional cities may lack some of the positives of metropolitan life.
“I think people are realising regional living, particularly in inland Australia, has its weaknesses,” he says.
“Many of these smaller townships don’t have the amenities or the infrastructure that the capital cities have … they have their limitations.”
SQM expects many townships that had put out a no-vacancy housing sign during the pandemic rush to the regions will return to normal eventually with plenty of space for visitors.
And people who relocated to regional NSW could return to a capital city where the median house rental has risen.
In February 2020, a freestanding house rented for $706 a week on average in Sydney.
New data puts it at more than $762 with price rises expected in coming months, Christopher says. For those who don’t mind a smaller space, the median price of a unit, which was $502 in February 2020, remains lower at $494.
SQM found many Sydneysiders jumped at the opportunity to lower their rent during the pandemic and sought out the best homes in and around the city, driving prices up in some areas.
Among those who capitalised on the opportunity to live regionally is Eliza Wilson, 27, a social worker who also makes a podcast called Sex Cells.
She purchased a property on the NSW Central Coast with her partner in June last year. As Sydneysiders were called back to work, Wilson began a two-hour commute to Bankstown three times a week.
“I was kind of hoping there would be more flexibility, especially since I have a senior role and I don’t work with families directly,” she says. “While it’s possible to keep working from home – we did it for months – unfortunately (management) is not that flexible.”
Wilson has considered finding a job closer to her home. “I thought I’d wait and see if a job comes up here, and I looked for eight months and there’s nothing at the same level or pay,” she says. “The greater job prospects are in Sydney. I have been thinking about renting a property down there in Sydney and staying three nights for work, but I don’t really want to be paying a mortgage and rent. The market is pretty hot right now.”
Lara Boyle, 27, and her partner Rose Werle, 23, relocated to northern NSW in September last year after Werle was made redundant from her Sydney role.
“Byron seemed like a pretty cool place so we decided to pack all our things and head off having never been there or seen it,” says Boyle.
It didn’t quite live up to expectations so they made another move, this time 20km south to Lennox Head.
“Byron was just not what we expected,” Boyle says. “We expected a more regional atmosphere but it was quite touristy still and seemed like quite a wealthy place.”
Boyle’s employer supported her for the first few months before she found work with the Four Drunk Parrots in Ballina.
Werle didn’t have as much luck and after a year of trying to secure a permanent role she was given an offer in a Sydney TV production company. She had four days to move. Boyle followed three weeks later.
“Lennox Head was better than expected in terms of the beauty and the environment and the community feel, but it was quite hard as an adult to get in and meet people,” Boyle says.
While most of the early evidence points to a reversal of the tree-change trend, those plans are only likely to be disrupted by one thing.
“If we see another lockdown, we think people will stay (in regional areas) another year,” Christopher says.
While some employees report feeling pressured to return to the office, they have more bargaining power than they realise, HSBC chief economist Paul Bloxham says.
“One of the interesting features of this is that we’re in a fairly tight labour market … this should tilt the balance in favour of workers seeking more flexible working arrangements,” he says.
“Now that lockdowns have been released, it’s still the case we’re looking at mobility that’s about 20 per cent below the baseline in NSW.
“Our working assumption is that we are going to be in a world where there is going to be less commuting post-pandemic.”
It’s not only a win for employees but also for employers, who can choose from a larger talent pool, Bloxham says.
“They can widen the net much further afar because of work from home and technology,” he says. “It’s good for workers in terms of flexibility.”
