In the Knight Frank’s Rightsizing – Australian Prime Residential Insight 2020 report, we saw a growing demand for "resizing." It is a downward trend in lifestyle which sees people moving away from large prestige homes on large plots of land that require a lot of maintenance, to live luxury in smaller but fully equipped apartments.
Authors of rights – which include active retirees, entrepreneurs and families – are looking for properties that require little maintenance, but with proportions similar to homes and excellent amenities.
The under-supply of luxury apartment products for copyright owners is one of the many key trends that investors should watch for in the next three years.
Essentially, copyright owners are looking for luxury apartments with at least three bedrooms and two secure parking spaces in medium and high density projects in the privileged suburbs of Australian cities.
While "active retirees" are one of the main categories of rights buyers for main apartments, the other two main categories are entrepreneurs and families.
It is perhaps surprising to note that resizing also calls on the younger generation, and at a much earlier stage than in previous years, given the agile, transient and global nature of their work and their game.
Among active retirees, many buyers tell us that their home is no longer necessary to provide the lifestyle they want. Often the cost of maintaining the house, pool and garden outweighs the excess space they once wanted.
The reduction in living spaces is not part of this change – the courtyard certainly, but the new luxury apartment must be the right size, with matching equipment.
The copyright owners want to be in a walking location, close to activity centers and amenities. As for the apartment itself, what they are looking for is high security and a concierge for locking and checkout; a reputable developer and manufacturer with certainty of delivery; a single storey dwelling; internal amenities; good eyesight and appearance; access to transport links; a sense of community within the complex; intelligent life technology; and a new modern building.
The cost of the quarterly direct debit from the owners' company and the contribution to the growing sinking fund are often cited as an obstacle to resizing, but our research has found that the average quarterly costs ($ 3,000 to 8 $ 000) for a three bedroom main apartment were cheaper. than the maintenance of a three-bedroom house in a privileged suburb ($ 9,000 to $ 15,000).
This main trend follows a path similar to that of the broader market, the average size of new houses built in 2018/19 having fallen by 1.3% compared to the previous year, while the average size of new apartments increased 3.2%, according to the Australian Office. of the Statistics report commissioned by CommSec.
Our research revealed that the share of luxury three-bedroom apartments under construction over the next three years fell in Sydney to 44% for medium density projects and 14% for high density projects, and in Melbourne at 21% for high to high density projects.
Medium-density projects in Brisbane have the largest share (87%) of three-bedroom apartments built in privileged suburbs, while medium-density projects in Perth show the largest growth in the share of bedrooms under construction (from 27% to 50%). In the past three years, the Gold Coast has seen the highest part of three bedrooms built, 70% in medium density projects, and this is expected to reach 81% by 2022.
Michelle Ciesielski is responsible for residential research at Knight Frank, Australia
Top suburbs:
murdoch
,
belmont
,
balga
,
Hebersham
,
marrickville
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