- Many newly built luxury apartments are obsolete from the first day owners move in
- If an apartment doesn't have future-proof features, this could lower the resale price by 20% compared to a dwelling that does
- Features range from car chargers to smart mirrors
In her first article for The Property Tribune, Fiona Yang, Executive Partner at Plus Agency, discusses features that should be on your checklist if purchasing a new apartment…
Too many newly built luxury apartments are already obsolete from the very first day their new owners move in.
Worse, if you have bought one of these apartments, you could be worse off by hundreds of thousands of dollars as a result.
Buyer preferences are rapidly evolving, but most developers are still building apartments to the minimum standards set decades ago. In this respect, Sydney and Melbourne are far behind our Asian neighbours like Singapore, Kuala Lumpur, Hong Kong, and Shanghai.
Nearly every new luxury apartment building in other Asian Pacific markets already offers features that here seem futuristic.
Plus Agency has identified the 11 essential features that future proof a new apartment building. If your new apartment lacks any of these features, our research suggests that you could find yourself reselling at a 20% discount by 2030 against similar units that do have them.
In 10 years, you won’t use an old-fashioned key to get into a multimillion home. It’s not as safe or convenient as a smart lock.
And people already want VRV air conditioning that doesn’t mix the air —and any air-borne contaminants—from various units in a building – but you can’t install one after your building has been built.
So what are the 11 future-proof features?
They are electric vehicle charging, 5G, externally ducted range hoods, double glazed windows, underfloor heating, digital biometric entry, advanced security cameras, VRV air conditioning, electronic curtains, and smart mirrors, and smart sensors.
If you buy a new luxury unit today without these features, you could find yourself losing money later, when it comes time to resell it. By 2030, we believe a luxury unit without these features will sell for around 20% less than one that has them.
If you pay $3 million for your apartment, you could lose around $600,000 compared to a similar but future-proof unit.
With so much money at stake, you may be surprised to learn that actually including the future-proof features at the time of construction is relatively cheap. They can be built into a new building while it is under construction at a cost of just $20,000 to $30,000 per unit.
Think about this carefully if you’re in the market for a new apartment. If you choose to buy in an obsolete building, you risk losing a significant part of your future equity.
Some of these features may seem like unnecessary extravagances to you today, but they will be the minimum in luxury apartments in just a few years.
Already today, 70% of the luxury buyers we work with in the Sydney CBD, Eastern Suburbs, and North Shore demand more than half of the 11 future proof features on our list.
Two years ago, fewer than a third were asking for them. By 2025, we believe nearly all luxury buyers will want them.
Besides the 11 future-proof features, we have also found that our overseas clients who use their Australian homes only part of the time insist on having home hazard sensors that detect water leaks, smoke and fire, and gas leaks.
Rather than beeping heedlessly in an empty home like a traditional smoke alarm, they can ping you instantly with a message wherever you are in the world. In combination with your smart home security system, hazard sensors give you complete peace of mind.
Top 11 Future-Proof Features for your Apartment
- Electric vehicle charging: Nearly every new car will be electric within a decade. Your new building will last much longer than that, so it must have charging units in the garage. There’s simply no debate about it.
- VRV air conditioning: In the post-Covid era, VRV or variable refrigerant volume air conditioning is necessary for a luxury apartment. It keeps your air completely separate from your neighbours’.
- Built-in 5G technology: 5G is essential in luxury buildings and will be standard within a half-decade. You can install 5G later if you have to, but it will cost more and the telco could damage the building during the installation process.
- Externally ducted range: Every real estate agent knows that after just a few years, kitchen looks and smells worse if it hasn’t got an externally ducted range hood. Retrofits can be costly and unsightly.
- Double-glazed windows: Most new luxury developments are in locations with some ambient noise from traffic or street life. That’s why double-glazed windows are an absolute minimum requirement.
- Underfloor heating: Sydney winters are becoming colder, but it is expensive and difficult, if not impossible, to install underfloor heating after construction is complete.
- Digital and biometric entry: Old-fashioned keys and locks just aren’t as secure or convenient. Install them from the start so they can be wired in unobtrusively.
- Advanced security cameras: Security systems are best installed during construction. In an uncertain world, every new luxury apartment building needs an effective video security system.
- Motorized curtains: You can retrofit a unit with motorized curtains, but if you wire them in at the time of construction, you’ll get a seamless look and can use building power rather than batteries that need to be charged.
- Smart mirrors: Smart mirrors are like giant iPads in the form of a luxurious, heated bathroom mirror. They are motion-activated, splash-proof, full-featured Android devices that enable you to watch video, listen to podcasts, check the weather, see your schedule, and more — all while preparing for your day.
- Smart-home sensors: The new generation of smart home systems is able to proactively provides comfort at all levels by monitoring motion, temperature, humidity and luminance level. The sensors can adjust brightness, turn lights on and off automatically, and fine tune temperature and humidity levels by triggering smart curtains/blinds, light switches, and the air conditioning.
