Published on August 10th, 2012
Buyers shift to apartments
Melbourne’s apartment market is growing as buyers turn their attention to more affordable living options, a study has revealed.
According to the latest figures from RP Data, the number of people buying smaller dwellings in the nation’s capital cities has risen considerably in recent years.
Almost 50 per cent of all house sales in Sydney are now apartments, with buyers choosing proximity to the city over suburban backyards.
Melbourne’s apartment market has grown to 30 per cent of house sales and Brisbane is currently sitting on 25 per cent, the organisation says.
The recent push toward smaller dwelling spaces seems to have been prompted by rising cost of living pressures, with most real estate experts suggesting that affordability is at the forefront of buyers’ minds when they choose to buy an apartment.
However, this is just one of many reasons for the sudden growth in apartment sales.
Recent reports from the Australian Bureau of Statistics confirm the findings of RP Data, revealing an increase in the number of building approvals for apartment blocks in most states.
And according to the Victorian government, the addition of a number of new skyscrapers for residential living in close proximity to the CBD is part of a broader plan to promote the city internationally.
Speaking on the The Falls tower in Queensbridge St development, the state’s planning minister Matthew Guy said the 586 apartments that have been earmarked for construction will increase the number of vertical homes in the area to 2,945.
“The approval of The Falls is consistent with the Coalition Government's commitment to grow a greater Melbourne CBD and to continue the transformation of the city centre to a world-class, 24-hour city,” he stated.
The government is also drawing up plans for apartment developments in the Docklands and Fisherman’s Bend.