- Small apartments are being sought by many buyers
- Has been embraced in cities such as London, New York and Tokyo
- Appealing to buyers as they are typically located centrally
Small apartments, also known as micro-apartments, are now becoming a preferred option in Perth as people seek out affordable living.
One in ten apartments now sold in larger developments are less than 50 sqm.
In the current environment of dwindling rents and times of uncertainty for tenants, many are resorting to purchasing their own unit with the aid of dipping into their super or having their parents assist or undertake to be a guarantor.
Many are now purchasing micro-apartments.
So, what exactly is a micro-apartment?
It’s also known as a studio or bedsit and is typically only one room, including a small but functional living/bedroom area, bathroom, kitchenette and some multi-purpose furnishing, all within an area 50 sqm, but are typically around 35 sqm.
This trend has been gaining popularity with young people and sought by investors in cities around the world and has been long been embraced in cities such as London, New York and Tokyo, where space is often at a premium.
Investors and young professionals are seeking the inner-city lifestyle, being close to amenities with the ease of ‘lock and leave’ living at affordable prices.
Micro apartments tend to be low maintenance and with a busy lifestyle, it makes sense that they are growing in popularity.
Location, location, location
Location has become king and the demand for these smaller more affordable inner-city apartments continues to grow.
Residing in the lively centres of Perth, Northbridge or Fremantle is what a lot of millennials are moving towards rather than having to move further out of the city for places they can afford.
Living central also aids in cutting down travel expenses and even the need for the use of a car with the CAT bus and train services available, not to mention the rapidly increasing use of Uber services and bike-friendly cycle ways.
Many offices now feature end-of-trip facilities, too.
With the escalating building cost, smaller is becoming a preferred option. Going green and carbon neutral is also proving to increase these micro apartments as true homes.
The higher divorce rate and rise in single/older dwellers has increased the demand for company versions of homes with a minimum upkeep, and access to club med style facilities.
Many young people also no longer wish to be bogged down by massive loan repayments and these micro apartments prove an excellent entry into the property market, without having to sacrifice location.
Time has shown that when buying central properties, they are more likely to increase their value faster.
Often complexes embracing micro-apartments offer it’s residents large communal spaces such as barbeque convenience, entertainment areas, gym facilities and shared gardens.
Newer builds are also generally fitted out with high-end fixtures and finishes, coupled with clever designs which means many people are rethinking the need for large internal space and choosing stylish micro-apartments instead.
However, micro apartments may not be for everyone. Some banks have lending restrictions on smaller properties such as these, so if you are thinking about purchasing a micro-apartment, make sure you conduct your research to ensure that you make the best possible decision for your circumstances.
