01 Oct Australians flocking to flats
There’s good news for many building managers in charge of large flat developments: the accommodation type is becoming more favourable among the Aussie population.
Shunning the garden and lawn that many have previously desired for, greater numbers of Australians are seeking a property closer to the city and all the amenities that come with metropolitan life, according to Commonwealth Bank’s Senior Economist Michael Workman.
Speaking to the Associated Press, Mr Workman predicts that people will flock to flats in 2016, with Victoria one example of this trend. He explained that 33,000 multi-unit dwellings (flats and townhouses) will be built next year, while 32,000 detached homes will be constructed.
That’s the first time the compact housing types have overtaken detached properties, signalling a change that Sydney has been at the forefront of since the 1990s, the Sydney Morning Herald explained.
City living over suburban lifestyleShowing the power of location, Mr Workman said nearly half of the flats will be built within 12 kilometres of Melbourne’s central business district.
We saw similar evidence recently when a dilapidated and uninhabitable Brisbane shack, called “the worst house in Australia” sold at auction for $668,000 – simply because it’s located 2.5 kilometres from central Brisbane. One only has to imagine what a property with effective building and roof maintenance programs could fetch!
The figures are similar around Australia. In September 2015, Commonwealth Bank pointed to figures from the Australian Bureau of Statistics on the rise in desire for flat living.
Between June and July 2015, the total number of dwellings approved across the country grew by a seasonally adjusted 4.2 per cent – reaching 19,298 new buildings. Residential housing increased by 3.1 per cent, while multi-unit dwellings soared by an impressive 6 per cent in only two months.
So, what does this mean for building managers and property owners looking to use this trend to their advantage? First, an increased demand may help them improve the returns on their property.
Getting the most for your moneyA well-maintained and safe property will be an attractive proposition to the scores of Australians looking for a central flat. With competition heating up from the new flat complexes entering the market next year, it could be worthwhile adding value to your building by looking into a maintenance and repair plan.
By exploring the property’s condition now, managers will have a better view of how they can allocate their budget over the coming years to stay competitive.
There could also be room to increase the rental returns on such properties, with Moody’s Australian Housing Affordability report finding that dwelling prices in Sydney are rising faster than elsewhere in the country.
To ensure the flats that are under your care are ready for a prosperous future, contact R&BS and speak to an experienced building maintenance consultant.