Did you know that over the last 20 years, apartment purchases have increased to over 35% of all property transactions?
The demand for new and off-the-plan apartments over the past three years has surged for the following key reasons:
- Record low interest rates,
- The increasing popularity of apartment living, and
- The appeal of apartments as an attractive investment option from onshore and offshore investors.
Downsizers, particularly baby boomers, have also played a large role in the increase in apartment sales over the past three years. Many have taken advantage of the property price growth of the family home to sell up, buy a low maintenance apartment.
The pros of owning an apartment as an investmenttment as their primary place of residence, and use the surplus funds to buy an investment property or use them as retirement funds.
Apartments require less maintenance than a home as a property investment. They are also typically located close to amenities such as transport and shopping facilities and are equipped with features that prospective tenants in today’s rental market find attractive, such as air conditioning, intercom entry, built-in robes and a dishwasher. As a result, apartments are typically more in demand in today’s rental marketplace and achieve a sound rent return and resale value, relative to the cost of purchase and maintenance.