Confidence exists among those who understand property cycles that units and apartments will come into renewed favour through both affordability and location.
Investors have traditionally dominated the apartment market, but over the last few years it has been the owner occupiers, including first home buyers and downsizers. The opening of domestic and international borders will likely see increased demand for units in inner-city precincts, and with that, more investors will enter the market.
2022 apartments are more than internal square metreage plus balcony. On offer are amenities such as gyms, pools, barbecue areas, recreation areas and playgrounds, and shared gardens. Step up to luxury for things like concierge services, private dining rooms, rooftop cabanas and yoga decks. Gyms have become wellness centres; and recognising the shift to home workspaces, developers are creating larger apartments with multipurpose rooms-come offices space, as well as incorporating shared boardrooms and meeting room facilities in the apartment complex.
Humans are social beings. We love to belong. The urban sprawl has, to a degree, fostered a decline of the suburban community, with neighbours now lucky to get a wave or a nod as they pull out of the drive, or put the bins out.
Apartments can promote community living. Residents become connected in corridors, lifts and shared spaces, in gyms and around the pool or playground as they move around the complex, and in the cafes and restaurants at street level. In apartment communities, you can have like-minded people attracted by the location but diversity too through different apartment sizes and price points. Like-minded people gravitate together, and social and exercise groups develop organically. They often look out for each other, providing added sense of security and support.
In 2020, Australia’s largest annual study of community values and liveability, Ipsos Life in Australia, reported safety at 72%, followed by 51% affordable decent housing; 48% nearby quality health services; 47% access to nature; and 33% close to shopping, leisure and dining. Apartments can contribute to people feeling safe through reserved resident car spaces, closed-circuit television camera, security systems, key card entry, and round-the-clock staffing.
The 20-minute neighbourhood – have you heard of it?
The Victorian Government is trialling the concept that relates to living locally, giving people the ability to meet most of their daily needs within a 20-minute return walk from home, and access to safe cycling and local transport options. The ‘20 minute’ concept comes a healthy adult’s average walking time to cover 800 metres. Too many have fallen into a sedentary and unhealthy lifestyle. We reach for the car keys over walking or cycling. We worship automation rather than doing something physical ourselves and so many sit at a keyboard or in front of a screen for hours on end.
The 20-minute neighbourhood lends itself to high density living and both existing and new apartment complexes are ticking the boxes for this concept without even realising it, in locations where residents have access to shopping, business services, education, community facilities, recreation and sporting facilities and employment. It’s thought that lifestyle destinations where such services are available within a 20-minute walk are likely to outperform more remote suburbs in terms of real estate growth. This is encouraging developers to be more aware of creating vibrant, exciting and caring communities, apartments that allow residents to live, work and play within 20 minutes of home, and with no need to find a parking spot.
Downsizing to an apartment
Tip: make a list of the fun things you want to do in the next decade. If it doesn’t include mowing, cleaning gutters, weeding gardens and external maintenance, explore the apartment option.
Some obvious benefits are:
- Ease of maintenance. The apartment is often smaller than a family home and it’s easier to lock the door and go on holidays.
- Convenient. An apartment community can be close to whatever it is that suits you – be that city, shopping, parks, entertainment, transport or schools.
- Less clutter. The move is the perfect reason to prioritize your possessions and let go of things you don’t need.
- Reduced insurance and utility costs. Check on the energy efficiency rating, but generally a smaller space should mean savings on insurance, heating and cooling.
- Increased cash flow. Depending on where you buy, investing in an apartment when you sell your home might mean you have money to spend on your lifestyle, invest or pay off a mortgage.
Size counts
Not everyone wants to downsize to a smaller apartment. In fact, once developers realised that buyers didn’t want an apartment that crammed three bedrooms into a 110 square metre space, they changed the design focus. They listened to the owner occupiers who wanted generous spaces and were happy to pay accordingly.
The result is large three and four-bedroom apartments with luxury master suites, multiple living spaces and balconies that comfortably fit outdoor furniture, even outdoor kitchens. These buyers want a central location close to loads of amenities while retaining the ambiance and versatility of a spacious home.
An apartment may be the next great property move for you, either as an owner occupier or an investor.
