The Perth development market was once dominated by single story houses with a front and back yard. It's now increasingly moving towards higher density living.
This is good news for a city that has suffered the effects of rampant urban sprawl for too long (such as higher infrastructure and maintenance costs for suburbs and worse traffic and public transport). It’s also really good news for developers, as long as you’re smart about it and know how to make the right decisions.
Why the change to high density?
A report published by the Master Builders Association and Y Research has shown that the number of people choosing high density living will increase dramatically in the next 5 years, and that by 2020, it will account for more than 20% of all new buildings. In order to make the best property investment decisions, it’s vital that you understand the driving forces behind this change in demand.
Lifestyle: as Perth matures into a more vibrant city, there will continue to be more lifestyle attractions on offer. People that might have been once content to live a quiet life in a sleepy suburb are now more eager to live in a location with access to lifestyle attractions like bars, restaurants, amenities and natural beauty like the ocean or river.
This is especially true of older downsizers and younger people entering the market for the first time. Both groups are willing to trade in the larger home and big yards for a smaller home in a better location.
Cost: It’s no secret that housing affordability is a huge issue these days. High density living allows more people to enter the housing market by offering more affordable options.
Sustainability: With sustainability a hot button issue, more people are attracted to the nature of high density living. Lower carbon footprint and more efficient use of resources being just a couple of appealing factors.
How you can capitalise?
Location has always and will continue to be an important factor in real estate investment decisions, but it’s even more paramount if you’re going to make the most of Perth’s transition to high density living.
People definitely want to live in smallerdwellings in better locations, but that doesn't’ mean that we’re going to turn into a city of sky scraping apartment blocks overnight. While Perth is in this transitional phase, townhouses and subdivision developments, such as duplexes and triplexes, represent the perfect middle ground and appeal to a wide range of prospective buyers and tenants.
If you ask us, the smart move is to focus on building high quality unit and townhouse subdivision projects in desirable areas. It’ll put you in the ideal place to make the most of both Perth’s changing real estate landscape and forecasted economic recovery.
As one of Perth’s leading builders specialising in property development, we can help you capitalise on this shift in Perth’s housing demand by handling every stage of your project - from planning through to construction - with unequalled professionalism and attention to detail. Get in touch with us today to find out more.