New research from Gateway Credit Union has found that studio apartments are an appealing property option for many Australians as they look to live in their suburb of choice.
The research found that more than a third of Australians (35.5%) would rather buy a studio apartment than move to a bigger property in a less ideal location.
“As a nation, it’s well-known that we love our space and there is research that suggests we have less people living in bigger properties compared to a few decades ago,” said Gateway Credit Union CEO Paul Thomas.
“But it may seem as though our obsession with the traditional Great Aussie Dream of owning a home with a backyard may be at a turning point, “ he said.
“Today’s skyrocketing property prices mean that many are forced to swap one dream for another. Smaller properties that offer a convenient lifestyle, situated in ideal suburbs – often close to city centres and public transport facilities – are now much more desirable than ever before.”
Baby boomers were found to be the most likely to buy a studio apartment at 44.8%, followed by those aged 18 to 29 at 30.8%, and those aged 30 to 49 years old at 27.5%.
Thomas said that studio apartments are a good option for mature downsizers and younger generations struggling to get their foot on the property ladder.
“In fact, our research corroborates this, with 68.7 per cent of respondents agreeing that studio apartments are a good way for first home buyers to break into the current property market, “ he said.
As property prices continue to climb and populations grow it seems very likely that studio apartments will continue to grow in popularity.
Those considering buying a studio apartment should however consider their long term needs and whether or not the property will deliver on capital growth.
There will always be a smaller pool of buyers and renters for studio apartments compared to larger dwellings due to them not being able to fit more than one or two inhabitants.
Thomas also warned that there are generally strict criteria around lending for properties smaller than 50 square metres.