Episode Transcript
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Speaker 1 (00:01):
The fall of the great
Aussie backyard happening
before us.
We're going to talk about it asreal estate agents on the
northern beaches.
What's happening to thebackyard?
Stay tuned.
I'm the ringleader, so let'sget up.
(00:26):
Good morning Hello.
Speaker 2 (00:33):
How are ya?
Yeah, really good, thank you.
This is a fascinating topicSpoken widely at the biggest
real estate conference In theSouthern Hemisphere yesterday
the fall of the Aussie backgarden.
Who spoke about it?
Industry leaders, Not onlyindustry leaders, but also
(00:57):
realestatecom, the number oneonline real estate website in
our country for property dataand insights, and I was just
blown away.
It sounds so simple, butAussies have shifted their
priority list with theirshopping and the back garden is
(01:17):
one of them.
Speaker 1 (01:19):
Wow.
Well, you know what.
We've thought it, we've spokenabout it and it's happened.
It's happened the importance ofthe backyard.
So how has it happened, billy?
What's happening?
They're not asking for blocksizes anymore.
They're not brown-nosing littleblocks.
What's happening?
Speaker 2 (01:37):
Well, the biggest
shift is the shrinking size.
In the 1990s the averageAustralian block size was 800
metres to 1,000 square metres.
That was considered standard.
Today new residential averageis just between 350 to 450,
(02:02):
especially in urban growth areas.
So that's sort of the keycorridors where they're trying
to push new traffic to.
But for Sydney even the averagelot size is between 280 to 300
square meters for the newdevelopment.
So that's what they'rereleasing now.
So it has changed.
There's three, you know, sortof three, three step progress
(02:23):
what are people bind?
it's it's, it's a it.
Why don't people mind?
It's a shift in people'spriority list and, to be frank,
they don't have a choice.
I don't think Like councils areencouraging medium density.
(02:45):
Backyard space is sort ofsacrificed for more internal
space.
You've got an extra living room, extra bedrooms, and then the
asset class changed as well.
So where people were eithergoing further afield for a
bigger house, they've now gotthe opportunity to live a better
lifestyle, but a different kindof living, such as a townhouse
(03:08):
so just as the robo-law mowerscome along, people don't need
them.
Speaker 1 (03:11):
Now they got smaller
blocks 100%.
Speaker 2 (03:14):
And, and you know,
else is interesting it the type
of people that are buying these.
You know, buying theseproperties on a smaller block
size um, you know, often fit inwith a first-time buyer or a
downsizer, someone that doesn'treally want the full maintenance
of a big property.
So it it just makes sense.
(03:36):
And and another thingrealestatecom was talking about
yesterday is that australia isgetting older.
Um, you used I can't rememberthe the dates they were talking
about, but I think 10 years agothey were saying you used to.
I can't remember the dates theywere talking about, but I think
10 years ago they were sayingyou used to walk down the road
and one in 10 Australians wasover the age of 65.
Today that's now one in five.
(03:57):
Australia is getting older.
Speaker 1 (04:00):
So what, the oldies
don't want to buy the yards
either?
Speaker 2 (04:05):
Well, there's just
more people in the marketplace
that don't have purpose for abig block, and so it makes sense
.
What the consumers want is whatthe developers will deliver,
and it's where the better pricesare being delivered.
Speaker 1 (04:21):
And on a massive
scale.
Also in terms of planning andscaling and stuff, it's actually
much cheaper to deliver becauseyou're really sweating the
asset a lot more.
So if you look at developingthese blocks in that inner rung
of CBDs, as in on the inside ofthe corkscrew, less hospitals
(04:44):
need to be delivered, you justmake the hospitals you've got
bigger.
Less schools need to bedelivered, you just make the
schools bigger, whereas whenyou're delivering these blocks
on the outside of the corkscrewanother hospital, another
supermarket, another hospital,another supermarket, another
school it's really you have to.
You know highways and it chokesthe center, whereas they would
(05:07):
rather build smaller blocks inthe core of cities rather than
going on the outside of acorkscrew and having to deliver
all that infrastructure yeah, Imean, just look behind me.
Speaker 2 (05:18):
What about this for a
backdrop?
I'm sitting in the gold coast,um, amongst some of the you know
the newest high-rises in thecountry, and you know, none of
these are empty either.
Yeah, people are chasing adesirable lifestyle.
People love it.
They're happy to sacrifice theback garden.
(05:38):
As I said, townhouses andstrata living is amongst the
fastest-growing type of propertyin the country.
It doesn't surprise me.
Speaker 1 (05:52):
I'm also not
negotiating, I'm not arm
wrestling with purchasers onblock sizes.
So I remember 10 years ago, 15years ago, I was having
conversations like what is it?
And they're like oh, I'm likeat 680.
I'm like it's really got to beover 750.
There's none of thatconversation anymore.
It's just completelydisappeared.
Speaker 2 (06:14):
Yeah, yeah, exactly
right.
The only time I ever hear ablock size come up is in the
context of development andtrying to meet a minimum lot
size for more potential iesubdivision, but otherwise I
just never hear it.
It's so interesting Like allthe properties we sell, you get
(06:37):
buyers that are looking foraround that sort of 600, 700.
I think that's a nice sort ofmedium level family sort of
style of home.
But you're absolutely right,I've never seen anyone lose a
deal because there are 50 squaremeters out.
Speaker 1 (06:52):
Never, never, never
time to change billy time to
change.
Watch the net.
What's the next trend if you'rewatching?
Speaker 2 (07:00):
the next trend is
more of this um, you can, you
can see, yeah, you can see.
Behind me there's, you know,plenty more coming this way as
well.
I think the reason for that isyou know councils love it and
you know state governments loveit.
(07:21):
They want to.
Speaker 1 (07:23):
Got your nice
restaurants downstairs, go for a
nice walk close to the water.
Bang bang boom.
Speaker 2 (07:30):
Yeah, it was
interesting.
Again, realestatecom I was veryimpressed with their
presentation yesterday Gave aninsight that Sydney's got the
same footprint as Tokyo.
But look at the difference inpopulation.
Yeah, in population, yeah,We've got.
(07:50):
You know, we think we're sortof we're busy cities at the
moment Absolutely not.
It really just needs to be sortof an adaptive transport model,
health model, social model.
There's a lot more we can bedoing with our big cities.
Education is a big one as well,isn't it?
Education?
Yeah, there's a lot more we canbe doing with our big cities.
Education's a big one as well,isn't it?
Education, yeah, there's a lotmore coming.
Speaker 1 (08:14):
Can you explain your
sunglasses?
Speaker 2 (08:17):
I'm just sitting in a
beautiful sunny spot in the
Gold Coast.
They're a requirement.
Speaker 1 (08:26):
What do you reckon of
the Metaglasses?
I like them.
They had definition to your, toyour face at the shocker.
All right, yeah there's asession for you guys, in summary
, about blocks what we areseeing as real estate agents,
and I think it makes a hugeimpact that look, it's confirmed
(08:47):
, like we are.
It's that's what people arethinking out there.
Speaker 2 (08:52):
Amazing it's not
going the other way around.
You know, in summary, it hasmoved from 800 to 1,000 square
metres through the 90s.
It's now moving to sort of 350to 450 as an average.
But in Sydney we're seeing, youknow, we're seeing new land
releases.
(09:12):
You know, around the 200 squaremetre mark it seems small.
We can do a lot with it.
Shrink your block.
Speaker 1 (09:20):
Love ya, see ya, bye
See you guys Bye.