22 Nov TA:15 Talk about “off the plan” apartment sales…
For literally decades property commentators and the media have debated the development of apartments in Australia’s capital cities. Usually the commentary ran along the lines of “there are too many being built”, or “they are too small”, or “they are creating an urban jungle”.
One thing we do know for certain is that this development has created a very valuable supply of housing and with out it we would have a serious housing crises.
What’s done is done but the future apartment developments have changed mainly to meet the changing demand or purchaser profile. In the last 1 or 2 years the buyers have moved from mostly foreign and domestic investors to mostly owner occupiers. The world of lending to develop and buy apartments has shifted dramatically as has the tax regime which may change further if there is a change of government in 2019.
John Meagher has been immersed in the apartment market for over 20 years and is founder and managing director of three sixty property group who specialise in the sale of off the plan apartments on Australia’s Easter sea board. Chatting to John he explains what the current purchaser is looking for in an apartment and how the type of apartment projects currently being planned and built has changed.
In essence the foreign investment buyer has been replaced by the local owner occupier buyer. This means the way apartments are designed, services they provide, finishes and appliances, options to reconfigure have all been stepped up as the buyer is going to be living in it and not renting it out. This means the next generation of apartments will be bigger and better but they will also be more expensive.
Like everything, the housing market needs to provide choice and diversity to enable the population to have the ability to change their accommodation needs in line with their life needs. Regardless if they wish to rent or own the diversity of housing choices is a very good thing and ensures people to change the cost and style of their accommodation as their life changes.
As John explains the last 20 years of apartment development has supplied exactly that and will continue to evolve with the market demands to provide people what they want.