Tenant demand rising for apartment living

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Changing lifestyle preferences, and a desire for proximity to urban attractions, mean that growing numbers of Australians are embracing the joys of apartment living.

Your Investment Property reported on this phenomenon back in February, but new research provides yet more evidence of the trend.

The realestate.com.au research shows that 39% of tenants are now looking for an established or new rental apartment. This is up from 7% in 2012.

Arthur Charlaftis, from realestate.com.au, said younger tenants (under 35 years) and those with household incomes between $50,000 and $99,000 appeared to be driving the trend.

Over half (52%) of Gen Y tenants involved in the research said they like to live close to the action and wanted to find a rental property in the inner suburbs.

The research also showed the only 6% of Gen Y tenants were keen on a rental property in a regional suburb, as compared to 17% of Baby Boomer tenants.

Michael Matusik, from Matusik Property Insights, said there was currently a clear trend towards more compact, higher density housing – and shared accommodation.

In his view, this was due to affordability issues, demographics and a shift to a more European, cosmopolitan style of living.

“Maybe in Australia many of us have been living in houses which are too big on blocks that are too big.”
According to the realestate.com.au data, in the last six months the 10 most popular Australian suburbs for apartment rental searches were:
 
  1. Brisbane (QLD)
  2. Canberra (ACT)
  3. Perth (WA)
  4. Melbourne (VIC)
  5. Docklands (VIC)
  6. Southbank (VIC)
  7. Braddon (ACT)
  8. Nathan (QLD)
  9. Parramatta (NSW)
  10. Chatswood (NSW)
 
Charlaftis said the research also showed that nearly half (46%) of tenants feel the biggest disadvantage of renting is that home repairs and improvements were up to the landlord.

However, six in 10 tenants have spent their own money making improvements to a rental property.

Further, 72% of Gen Y tenants said they looked after rental properties as if they were their own, and 84% of Baby Boomer tenants said they took excellent care of their rental property.
 

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