Is the property boom just a trendy bandwagon or is it a gravy train?

Now the socio-economic factors.

The Baby Boomers

The end of the twentieth century marked the 55th birthday of the first of the Baby Boomers, that disproportionately large group born in the 1945-55 post-war period.

The Boomers are an interesting lot. We are confident, successful, financially well-off, determined to enjoy our late working life and retirement, equally determined not to slide into the “suburban pipe and slippers” drudgery that our parents did and - most importantly - not particularly interested in accumulating wealth simply to pass on to our children.

In the search for the eternal “Fountain of Youth”, the Boomers have followed the X-Generation into the urban fringe, populated the prestige high-rise apartments, taken possession of anything remotely associated with the waterfront, swapped their Landcruisers and Range Rovers for Audi cabriolets and are settling in to enjoy “the good life”.

The Seachange Phenomenon

As an extension of the Baby Boomer demographic, the SEQ market has also been a major beneficiary of the “Seachange Phenomenon” - that seductive lifestyle sidestep popularised by the ABC television series of the same name.

Following the heady boom and bust of the '80s and the stressful corporate restructuring and rationalisation of the '90s, the idea of moving out of the big city corporate rat-race and retreating to the relative calm of a seaside township struck a very positive chord with many jaded Australians in their '40s and '50s. This extension of the US New Urbanism movement has been most evident on the Victorian Southern peninsulas, the Central and North Coasts of NSW and particularly the Gold and Sunshine Coasts in SEQ, two of the fastest-growing regions in the country.

The emergence of Brisbane as a viable challenger to Sydney and particularly Melbourne in terms of lifestyle and facilities, have all added to the population shift to SEQ from both interstate and overseas. The establishment in Brisbane of a number of corporate head offices has also added to employment opportunities, currently delivering around 80,000 new jobs per annum, the highest level since 1994.

The Power of Fear

Psychologists say that fear is THE most powerful emotion - particularly the fear of the unknown. The fear of the outside world engendered by September 11, by the Bali bombings, by the wars in Afghanistan and Iraq and by the outbreak of SARS have brought home to Australians the stark and dangerous realities of the clash of religions and cultures and the horror of the unknown attacker.

They feel increasingly threatened, vulnerable and mortal and are determined to enjoy life now in familiar, safe surroundings. Australians of all ages, particularly the big spending Baby Boomers, have taken a good look at their lives and priorities, shelved their plans for the tour of Europe, given up their annual pilgrimage to Bali and decided to focus on their home, their family and to “see Australia first”.

This has all led to an increased focus on the home - where it is and what it provides. Is it appropriate for this new lifestyle?

The results are a significant increase in the velocity of house change, a surge in renovation expenditure, a huge upswing in the sale of leisure boats and an endless stream of massive caravans and four wheel drive vehicles as the “Grey Nomads” hit the roads of Australia en masse.

The Cynical Society

A further extension of the power of fear that is also impacting on both our society and the property market is what I refer to as the Cynical Society.