Shrinking Apartments

For the best City and North Adelaide locations, a brand new apartment in our best buildings sells for $7,000 to $8,000 per square metre off-the-plan. That means a 110 square metre 2 bedroom 2 bathroom pad with a carpark is $770,000 to $880,000. This cuts out many younger buyers, even though city living might be more suited to their study/work/play lifestyle than moving out to the "burbs" at their age.

A new generation of studio apartments may be the answer to this growing market. The current crop is aimed at international students. With no on-site carparks, and sized at around 28 square metres, they can be sold off-the-plan for $179,500 or up to $195,000 when completed and fully furnished.

However, international students aren't the only young people who want to live in the city. We think a high quality building with studio, 1 bed and 2 bed apartments sized at 35 to 65 square metres (exclusive of balconies) and marketed at $240,000 to $520,000 would be a sell out.

The key is a powerful location, clever design and great amenities including the usual lap pool, gym, common lounge and roof deck. The studios would have fold down beds and kitchen tables that pull off the wall as well as finishes and fixtures of a high quality.

This would appeal to the "lock and leave" mentality of many younger buyers who are looking for apartments which function as a sleeping place only. The rest of their 'living' occurs elsewhere in the city, which they can easily access without a car because they are in close proximity to their employment and social activities.

Baby Boomers on the move...

We have just sold this 1982 townhome in North Adelaide. We had lots of interest from younger buyers eligible for the first home owner's grant, but as with many of our sales lately it was secured by a "Baby Boomer on the move". These are pre-retirement boomers, who are still working, fit and healthy, but are also planning the next phase of their lives.

Often they live in a large house worth $1 million plus in an inner suburb, but their family is growing up and moving out. They are empty nesters and the nest will soon be way too big. The plan now is a city pad and a beach house or country cottage so that when they finish working they have "a best of both worlds" lifestyle.

Our buyer has just bought a country cottage as well as this North Adelaide townhome - both will be great investments as they are rented out negatively geared over the next few years. Then when it is time to sell the Unley Park family home he can freehold the investment properties with plenty of moolah left over!