Is the current trend towards smaller homes here to stay?
It’s official: bigger isn’t necessarily better when it comes to the Melbourne property market. For the first time in five years, units are selling better than houses, and so far this year more than 13,500 new townhouse residences have been approved for development – a huge surge from 8,000 approvals in 2014.
So is the smaller homes trend here to stay? Our agents have noted that with affordability being a priority amongst buyers, many first-home buyers are willing to sacrifice a backyard in order to get a foot on the property ladder, making a unit the ideal first purchase.
For downsizers who are worried about being too cramped, townhouses are the perfect in-between, allowing for a low-maintenance lifestyle with a bit of extra space. Investors would do well to consider either, as both units and townhouses will always be in demand with younger renters seeking the cosmopolitan Melbourne way of life.
Units ultimately allow for an inner-city, low-cost, low-maintenance lifestyle – however if size is a worry, then a townhouse is a great compromise that often comes with access to greenery. For the best of the bunch, look to areas such as Carlton and Richmond that have new developments, plus great transport options and amenities that means your investment will continue to grow.
So, whether you’re starting your portfolio, downsizing, or buying your first home, it’s worth considering something smaller.