- A new study showed remote and borderless investing has been supercharged by COVID-19
- The average distance between a landlord’s home and their investment property had risen from 294 km to 559 km
- Queensland was the most popular investment destination
Property investors have ‘doubled distance’ between where they live and where they invest in response to the pandemic, according to a new study.
MCG Quantity Surveyors managing director Mike Mortlock said their latest Property vs. Postal survey showed remote and borderless investing has been supercharged by COVID-19.
Mr Mortlock analysed the details of investor clients in the year to January 2020, and then again in the year to November 2021 to reveal a picture of changing investor buying habits.
The number revealed the average distance between a landlord’s home and their investment property had risen from 294 km to 559 kilometres over the pandemic period.
Mr Mortlock said investors looked for real estate opportunities further from their home suburbs than ever before.
“Buyers investing in locations more than 200 kilometres from home rose from 29.5% in January 2020 to 44.65% in November 2021.
“Even more dramatically, the percentage investing more than 1000 kilometres from home more than doubled during the period.”
Property vs. Postal
|% of investors||Jan 2020||
|Invest in same suburb*||6.90%||
|Is more than 200 km?||29.50%||
|Is more than 1000km?||7.70%||
|Is less than 50km?||60.10%||
|Is less than 10km?||36.10%||
|Is less than 5km?||23.20%||
Is less than 2km?
|Average distance (km)||293.47||
*Principal Place of Residence
Source: MCG Quantity Surveyors
The study found Queensland was the most popular investment destination, with 37.44% of investors buying there.
Mr Mortlock said, “This was followed by New South Wales with 34.31%. Victoria saw just 11.31% of the investor pool, while the rest of Australia made up the remaining 15.94%.”
According to the study, there has been a range of factors making distance buying an attractive option.
- Lockdowns and economic uncertainty during the pandemic
- Technology makes it possible to buy property from home
- The surging popularity of regional relocation in this remote working world
- Outsourcing buyers and due diligence to local buyers’ agents
Mr Mortlock said the next question will be whether this rate of remote investing is sustained post-pandemic.
“While the figures might come back a little, I suspect the world has changed for good and long-distance buying is well and truly established.
“There’s little evidence we’ll see percentages returning to pre-pandemic levels anytime soon.”