Homebuyers flock to city centres as pandemic-induced demand for flats close to nature wanes

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That shift has become evident in metropolises across the UK and Australia, as well as in compact cities like Singapore and Hong Kong

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Panoramic view of Hong Kong island’s skyline at sunset. Photo: Shutterstock

Cheryl Arcibal

Published: 11:30am, 1 Sep 2024

Homebuyers are flocking back to capital cities, reversing the so-called “sea change” or “tree change” trend during the Covid-19 pandemic, when homes in areas close to nature were the most sought after, according to analysts.

That shift has become evident in metropolises across the UK and Australia, as well as in compact cities like Singapore and Hong Kong, where home demand in core areas are outperforming those on the fringes.

“There was certainly a shift away from cities and urban centres … during Covid,” said Liam Bailey, partner and global head of research at Knight Frank. “Our experience was that most city markets underperformed suburban and rural markets substantially through 2020 to 2022, but since the middle of 2023, city markets have outperformed as buyers returned due to the draw of employment and convenience.”

Buying homes with easy access to modern conveniences and people’s workplace reflects a return to normalcy after the disruptions caused by the pandemic.

The London skyline at sunset. Photo: Getty Images/iStockphoto

Given the current trend, Bailey said “prime city markets are set to outperform [other areas] over the next few years”.