One-bedroom Apartments Coming Into Prominence
Michael Yardney talks about a perspective shift in the mindset of Australian home owners in an article for the website Property Update. He says that the Australian dream of home ownership does not seek support in the suburban McMansions anymore. There has been a definite change in the paradigm and the focus today is more on location than land.
Perspective shift for Sydneysiders
High income households are looking to purchase one-bedroom apartments as a norm and not an exception. Yardney asserts that preferences have changed and the way we embraced the café lifestyle implies that we are happy to live in relatively small spaces close to urbanised areas. Café culture, effective transportation, and healthcare and wellness facilities are some of the hallmarks of CBD living and this is much sought after by the Gen Y (across income brackets).
What you simply cannot ignore as an investor
If you are an investor, bucking the trend won’t help your cause. Ideally, you should look to maximise the profits that come because of the increased affinity of Gen Y towards one-bedroom apartments.
The case for one-bedroom apartments
Yardney also sheds light on what makes a strong case for a one-bedroom apartment. He emphasises location, advising to keep away from CBD locations and opting instead for the inner suburban locations that have paucity of developable land.
Tips from Yardney
Yardney also asks to avoid plain and generic buildings. He feels that boutique blocks work better than multi-storey buildings. As an aside, a floor plan should leave some kind of usable space despite the obvious constraints (storage space is welcome). Proximity of amenities and extra facilities like car space only add to the price your home might fetch you during resale, believes Yardney.
You can read the original article here.
Ignore gentrification trends at your own peril
I think it will be unwise to ignore demographic and gentrification trends. Sydneysiders are waking up to the realisation that McMansions won’t stand up to the shrinkage of space suffered in the last couple of decades. With the population explosion, developable land will only cramp up. Australia has really tough natural boundaries and they can’t be breached for the purpose of expanding real estate. This implies that we will have to make the shift to smaller houses.
Study of demographics is important
Demographic study vindicates our case. Already, our household size is shrinking and about 40% Sydneysiders live alone in their homes. Add this to the emerging gentrification trend that clearly points towards inclination for urban living, and it won’t be hard to figure out that one-bedroom apartments will be among the fulcrums of real estate in the coming years.