A MARKET FOR LARGER APARTMENTS?

A market for larger apartments?

Perth ALIVE advocates for multigenerational housing in walkable communities.

In cities around the world people are increasingly seeking multigenerational housing in walkable communities where services, amenities and public transport are within a five minute walk. But there is insufficient supply of such accommodation in Perth. Perth ALIVE believes that the revitalisation of many of Perth’s suburban town centres can address this need.

If Perth follows what is happening in Sydney and Melbourne we are likely to see an upsurge in demand for larger apartments. Two recent news reports noting the housing choices of different generations highlight this trend.

Toby Johnstone (Families dictate trend for high-rise published in the Sydney Morning Herald) claims that “Developers are rethinking the design of Sydney’s newest apartment towers to cater for the growing demand from families wanting to live in high rise buildings”. The article quotes figures from recent developments where layouts were changed to convert two bedroom apartments to four bedrooms at the request of family buyers. The developer Crown Group’s Director of Sales, Haig Conelly, noted that ”there had been a shift in the way people are living in Sydney … [A] decade ago apartments were targeted to more of an investor market focused on one and two-bedroom apartments. Now that has shifted to two and three bedrooms.”

From the Melbourne Age comes a further report (Empty nesters buy two units, get one key) by Simon Johanson, Property Editor. He points out that many downsizing baby boomers are moving out of the family home, and buying one and two-bedroom apartments and merging them, particularly in Melbourne’s inner suburbs. The author notes a scarcity of suitable smaller houses in the same neighbourhood for downsizing and suggests that this may be the reason for the move to apartments.

Johanson quotes Paul Hameister, of developer Hampton, as saying that in its precinct development in the Melbourne suburb of Abbotsford, “Seven of the 193 apartments [in the latest Sanctuary building] are three bedroom apartments, but demand for larger apartments in the other buildings, Eden and Haven, outstripped supply, leading buyers to merge units. Across Eden and Haven, 42 apartments have been merged.”

Is this a trend that we are likely to see in Perth? Let us know what you think.

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