Standing Out: What to look out for in a crowded apartment market
As the population of major metropolitan areas continues to grow, the demand for apartments does. This has led to an increase in new developments and increased competition amongst landlords to fill their units. To ensure that your investment in an apartment will hold its value over time, it is essential to be aware of what sets newer developments apart from the older buildings in the area.
However, it’s also important to consider what the future will hold for apartments?
What will be important to the people living – either as owner-occupiers or tenants – in the future?
Within the Kirwan Group, we have over two decades of experience in property development, and when it comes to apartments, we understand the importance of delivering something that stands out from the crowd.
In this article, we dive into some of the features you need to consider within an apartment and the overall development it sits within to ensure you are buying or creating a product that will hold its value.
Energy Efficiency
The cost of living continues to rise, and one of the biggest factors that drive those costs is energy. As we become more and more aware of our impact on the environment, people are looking for ways to reduce their consumption and save money.
So, when it comes to apartments, energy efficiency is a huge selling point that will only continue to grow in importance, particularly for apartment owners.
Regardless of whether the owner lives in the building as an owner-occupier or rents their apartment/s out to tenants, energy costs are one of the biggest for apartment owners.
Common areas and shared services within an apartment building account for up to 60% of energy usage, and utility bills account for almost a quarter of Owners Corporation/Body Corporate administrative fund levies.
Furthermore, 80% of potential purchasers are actively looking for information regarding a building’s environmental performance when considering which apartment to purchase.
In an ever-crowded space, ensuring the energy efficiency of your development is a no-brainer when it comes to ensuring the apartments within it remain attractive to purchasers and tenants alike.
Some features to look out for or to build in as part of your next development include:
- Solar power
- Double glazed windows
- Energy-efficient appliances
- Water conservation features
- LED Lighting
- Motion sensors
Space
Long gone are the days of simply cramming as many apartments into a building as possible.
This is particularly true if you’re looking at developing apartments outside of the inner-city and in the mid-and-outer suburbs or regional centres.
As the population becomes more dispersed, people are looking for a bit more space, and this is reflected in their choice of housing.
An apartment that feels cramped or is too close to its neighbours will be less desirable and, as a result, will be worth less in the long run.
With an ageing population, the prevalence of downsizers in the market has also created a real push for more boutique apartment developments.
The emphasis in these developments is on fewer lots per building or site in exchange for bigger, higher-value units.
Buyers in this boutique market are searching for low-maintenance houses with house-like qualities. With two to three bedrooms, big open living spaces, and a strong emphasis on opulent facilities such as wellness and roofs, these luxury apartments are in great demand. Purchasers are looking for conveniences, such as easy access to public transportation, smart and sustainable living technologies, and a strong sense of community and social connectedness, which will allow occupants to combine work and home life while also connecting with their neighbours.
The rise of boutique, high-end residences is undeniable. In the present environment, developers have seen chances to shift away from massive development projects and towards more specialised boutique products aimed towards owner-occupiers. In this boutique, premium apartment segment, owner-occupiers are more prevalent than investors.
When it comes to designing your next development, it’s important to allow for a bit of space between each apartment. This will ensure that the apartments feel more spacious and, as a result, more attractive to buyers and tenants.
Build Quality
When it comes to apartments, it’s hard to undersell the importance of reputation.
With no shortage of nightmare stories out there when it comes to apartment developments, purchasers are savvier than ever.
It’s not uncommon for them to seek a walkthrough at another building that a developer or builder has worked on before signing an off-the-plan contract.
You better believe that the build quality of your current development is going to affect your ability to finance and sell your next one.
As a property developer, it’s crucial to ensure you partner with a builder who you can trust to deliver an excellent result and be there to support you and your investors post-settlement.
The easiest purchasers to sell to are the ones who have brought from you before, and that is only possible when you’ve delivered something of exceptional quality and value.
This not only helps your apartments maintain their value long-term but will support the value of your brand more than any marketing magic ever could.
Kirwan Group has extensive experience developing property.
Director Jason Kirwan is proud to be one of the few ‘hands-on’ property developers in Melbourne. Jason concentrates on building assets in locations with proven long-term demand drivers, with more than 20+ years of residential construction experience and expertise in smart-home technologies and green building methods. Jason is a staunch believer that with the correct vision, strategy, experience, and assistance, any developer or investor can accomplish good fiscal benefits.
To ensure your next apartment development stands out from the crowd, contact Kirwan Group today.