Desirability in medium density

The strength of a stakeholder is found in their ability to adapt to changes in the market – and amidst the dramatic shifts on Perth’s real estate stage, Western Australians are rising to the occasion.

According to Mark Hay Realty Group Principal Mark Hay, many purchasers are looking at medium-density options such as units, townhouses and apartments, whether they are first homebuyers trying to jump off the rental merry-go-round, downsizers or investors.

As each type of dwelling comes with its own share of advantages and challenges, Willing Property Founding Director Tim Willing said it was important to consider which type of medium-density residence was best suited to your lifestyle needs.

Mr Hay echoed this sentiment, pointing out apartments are strongly favoured by working professionals due to their proximity to their workplaces and social areas.

“Apartments also often do not require a car,” he said.

“As the urban sprawl of Perth continues to grow beyond 150km north and south, many buyers are reluctant to simply drive for miles every day, so apartments located close to the activity are now favoured.”

Mr Hay said for working couples ready to upgrade to a family home, apartments functioned as a useful stepping stone to make the big purchase.

“This property quite often remains as an investment property,” he said.

“Apartments are also well embraced by downsizers, as they don’t need to maintain gardens and the property, plus there is excellent security with great lock-up-and-leave abilities.

“Several developers have carved an excellent niche building apartments directly aimed at downsizers wishing to remain in or around their suburb.”

Willing Property is leading the way in this area by providing quality dwellings standing the test of time in established suburbs, offering medium-density housing options for a diverse range of buyers.

“We believe everyone deserves the opportunity to experience the freedom and lifestyle benefits of apartment living without barriers,” Mr Willing said.

For townhouses, the market tends to suit young professionals and predominantly those without children.

“Though these residences are usually considerably more expensive, they have a restricted future for ageing buyers because of the stairs,” Mr Hay said.

“While townhouses are more desirable and show good capital appreciation, investors generally don’t favour these, as the return on investment regarding rent is always lower.”

Mr Hay’s advice to potential market entrants was to review your expectations and, if possible, opt for a smaller living area such as a unit.

“Units are generally the domain of young first homebuyers and single or divorced buyers, as they offer an excellent entry into the market with low upkeep,” he said.

“They are, by far, the happiest hunting ground for investors, giving the greatest rental return, the easiest market entry, and the ability to own small slices of real estate in different markets, locations and types.

“They can be a very prudent and profitable option.”

As it appeared in the 2024 November 16 edition of The West Australian.