Developers adjust their strategy for buyer demand
A shift in attitude towards high-rise living has developers looking more towards low-density dwellings and houses.
Over the past few years, developers have been fuelling buyer demand for inner-city living by building high-rise developments throughout Australia’s major cities and regional hubs. But recently there has been a shift in this trend. CoreLogic reported last week that data released by the Australian Bureau of Statistics (ABS), showed that high-rise units and town houses had a decline in building approvals, whilst low-rise unit approvals were up.
The decline has been attributed to developers having difficulty in obtaining finance and necessary pre-sales for them to be able to proceed with developing high-rise projects, but media has also reported that it can be attributed to Australian’s desire to live in houses or low-density dwellings – striking a better lifestyle balance. In the inner-city ring, homeowners looking to downsize are seeking a more boutique dwelling that affords them the luxury of space and privacy – which doesn’t always go together with high-rise developments.
This idea is reinforced with the trend that developers are redesigning apartment projects to include fewer one-bedroom and more three-bedroom apartments – the way Australian’s live, especially in major cities, is shifting.