The idea of “getting there” regarding property ownership in Australia had a large building with lots of land space – this was the Great Australian Dream. However, these days, one’s projected lifestyle determines the kind of home to live in and the dream has changed. Home options range from an apartment, a house or an automobile-turned home.
Considering that fewer houses are available and the market trend is changing unpredictably, the future home for most may be apartments. The choice of an apartment over a house for sale offers the benefit of more options in finding the desired property and within one’s budget.
Looking at the statistics, it shouldn’t come as a surprise that the demand for apartments by Australians is soaring higher. A quick look at the latest data from CoreLogic shows that the cost of a house increases by 5.71 per cent yearly, whereas apartment cost only goes up by 0.85 per cent concurrently. This is seen in the big 5 Australian cities.
Take Sydney, for example. Between February and March 2021, the cost of houses was double the price of apartments. The difference in price and reduction in the number of residential property for sale has turned the tide favouring apartment ownership.
Consequently, it is worth asking whether an apartment offers more benefits than a house. If one should consider the possibility of accumulated capital, budget-friendliness, and livability, an apartment may offer huge bonuses.
Houses vs Apartments
A house can safely be described as a detached building offering complete ownership. On the other hand, an apartment is one part of an entire building offering containment for self and ownership limited to just the occupied space.
Perks of buying a house
- Particularly for large and growing families, a house offers more space
- The outdoor space a home provides is excellent for extensions
- A home offers greater privacy; you have nothing to do with the neighbours regarding proximity
- The freedom of flexibility comes with a house
- Extensions and renovations can be done easily
Demerits of house ownership
- With a house comes more bills: furniture, appliances, heating, ventilation and all that extra stuff of a large space
- Outdoor features like the lawns, drainage, walkways and trees in a house require a lot of maintenance, not to talk of the inside
- Houses are pricey, thanks to land appreciation due to the higher population
Benefits of an apartment
- Way less pricey than a home for sale, plus there are lots of options to choose from
- It offers greater security as floors and lifts may require a swipe card or remote for accessibility
- It would also take more time for burglars to get to an apartment on the top floor of a 14-storey building
- The cost of maintenance is low as the space is not so big; no outdoor patio or gardens, just a balcony
- Access to many amenities like covered parking, indoor gym, swimming pool, etc
- Easy entry to locations that may be too expensive if a house is to be the goal
Drawbacks of an apartment
- Less parking space for apartment owners and sometimes visitors
- Less space for living, storage and fun
- Reduced privacy and more exposure to noise due to proximity to other neighbours
- Bound by strata/owners’ corporation by-laws
For investment, a house offers capital growth in the long run, while apartments offer rental returns. But this comes down to property conditions, the economy and the real estate market.
As for living, apartments may offer more flexibility in options, cost and maintenance than a house. Should you need to sell a house, or rent an apartment, A.M. Rutty Coastal Estate Agents are here to help.