Covid-19 has changed our spending patterns and will have a profound impact on our investments.
With so many of us now working from home, in suburban locations, the clever money is in the burbs rather than the CBD.
SGS Economics estimates that around $400m in spending on incidentals such as coffees, lunches and alcohol has been diverted from the Sydney CBD to the suburbs since March.
For Melbourne, the figure is estimated to be $250m.
Such changes will have profound implications on the property market; as Australians realise they can work and play in the same locations, they will seek out more lifestyle locations away from the CBD.
Coffee consumption in Sydney City, has fallen. However, the traditional latte lines of Sydney have increased their suburban café spending, with the eastern, southern and northern beaches all seeing rises in spend of up to 20 per cent.
Before Covid-19 investment gurus recommended buying property in a city’s inner ring, now experts are having to rethink. The sweet spot, offering best capital growth, has probably moved a fair few kilometres away from the centre.
And, with the country’s jobless rate dropping to a stunning 6.8 per cent, Aussies are likely to keep spending and the humble suburban strip is where it’s at.