Reflections on 2022 – and what comes next, the Trends Set to Define 2023!

Life can only be understood backwards; but it must be lived forwards.

― Søren Kierkegaard

As we’re approaching the end of what many would describe as a tumultuous year, I always like to use this time for reflection.

Growing up in China, I was accustomed to the practice where at the end of every year, we summarised the last 12 months – a personal report card if you will – and asked ourselves questions such as:

• What did I learn this year?
• How did I grow wiser as a person?
• What were the challenges I faced professionally and personally, and how did I overcome them?
• What could I have done better?
• What and where are the opportunities for next year?

The Awakening

During Covid, people learned new hobbies, re-evaluated what was important to them and built up much-needed financial reserves.

We saw ‘the great resignation’.

And we worried about what the future held.

But crucially, we got through it. We found a new resilience and became adaptable to change – all very important assets for the years ahead.

Post Covid, people are quickly reverting back to their old habits and ways of living.

Financial reserves are dwindling as we reward ourselves with things we were denied during the lockdown such as expensive travel, eating out and shopping for luxury items.

From my own personal perspective, 2022 was a year of awakening to what is now beginning to look like the new normal.

Professionally, it was a great year for Ironfish because our culture and structure is such that we have the ability to adapt, to change, to look at ways to reinvent ourselves and to see opportunities where others may see challenges.

If you apply these qualities to yourself as an individual, I can guarantee you will be in a better place, personally and financially, than those who do not.

The wisdom in the waiting

“Patience is not simply the ability to wait – it’s how we behave while we’re waiting”.

-Joyce Meyer

When the world took a minute to take its breath, we had time to really think about things instead of always being in a hurry and getting caught up in the day-to-day rush.

Just as in life, in property investing there is great wisdom to be gained from taking time to look at the bigger picture. If you’re in a hurry to buy or sell, to outrun or outsmart the market, your chances at building anything worthwhile are quite remote.

But if your goal is to create something of real value, something that will secure your financial future and build real wealth, do not rush in the short term. Focus, look at the future through a long-term lens and work to an investment strategy designed to weather any storm.

The future – trends set to define 2023

At Ironfish, we’re calling 2023 the year that defines the next decade. Why? Because it’s the beginning of our new normal – of living with Covid, global crisis and economic uncertainty.

While on the surface you can read that as not great news, I can highly recommend the art of getting on with the business of living and creating your own future no matter what the external factors may be.

I’m an eternal optimist – and at Ironfish, we live by the philosophy that the next year is always a good year, as it’s based on our core values of putting our customers at the heart of everything we do.  In our eyes, any year that gets you on the property ladder, or further along, heading towards your goals faster – is a good year.

Lifestyle Trends:

• Despite travel becoming increasingly expensive, people are hungry for international holidays after being denied for several years.
• More focus on personal health
• More time spent with family/friends/community – greater appreciation for the ‘little’ things and being part of a group
• Living arrangements – people transitioning from living on their own, now wanting to live with others, desire for more open space
• Working from home  –  trend towards larger, more luxurious properties with zoned home office space or apartment buildings with office shared services

What are the Market and Property trends?

• Interest rate rises are about to end and inflation will start to fall
• The employment market is still strong, but a warning – this market will cool further and create further competition for employment with the return of migrant and overseas student labour
• With an already undersupplied market, a rise in immigration and rental rates high, the rental market will remain tight
• The secondary market, for example second-hand or established properties (apartments in particular) – will see stronger focus and demand. Much of this is in relation to the construction costs impacting newer construction, but also, many developments were shelved as a result – so less stock will be available.
• Melbourne will see people focus on the more affordable established apartment market as houses have become unaffordable for many buyers. Brisbane will see continuing demand as an Olympic city. Bridesmaid suburbs will be popular in Sydney. And Perth will continue to attract employment with its leading economy, yet may see its status as Australia’s ‘most affordable’ city decline

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Key Predictions:

• Supply constraints, China’s Zero Covid Strategy policy and global crises will continue to interrupt our supply chain and impact oil and commodity prices, affecting our overall cost of living
• Interest rates will stabilise next year
• The market will continue to be undersupplied for housing
• And 2023 will be the year of the investor, an incredible window of opportunity has opened