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Melbourne property market 2024: The rise of apartment living

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Jul 2, 2024

Five-high density trends we’re seeing across Melbourne

Victoria’s population is growing rapidly and housing is in short supply. Add a cost of living crisis and rising interest rates and people are rewriting their list of property must-haves. Along with the popularity of medium density housing, we’re seeing a rise in apartment living. And not just for singles, couples or as a stopgap to buying a home with a yard. As developers create apartments with broad appeal for long-term living, more buyers are seeing the appeal of apartments.

Here are five high density trends affecting the Melbourne property market in 2024.

Developers adding apartments to their masterplans

Rather than being retrofitted into existing masterplanned communities, apartments along with townhouses are becoming a key priority for Australian developers at the start of their projects. The focus is on providing affordable options for first home buyers and downsizers in a community with lots of open spaces and access to amenities.

Melbourne’s property market 2024, we’re seeing the rising popularity of townhouse and apartment living. Image shows a row of 4 three-level townhouses with garages and front door on the lower level and two levels above.

Micro apartments featuring maximum liveability with minimum space

Just like micro lot housing, micro apartments are also set to become increasingly popular in Australia. These compact living spaces ranging from 20 to 40 square metres offer an affordable way to enter the market while maximising efficiency, functionality and sustainability. Smart design features such as multipurpose spaces, foldable furniture and innovative storage solutions improve the liveability and style of these spaces without the hefty price tag.

Families swapping backyards for balconies  

More families are embracing vertical living as an affordable, low maintenance housing option, especially when the apartments are close to good schools, shops, parks and public transport. While most apartments stick to the one or two-bedroom formula, more developers are catering to this trend by increasing the size and proportion of their apartments to include three bedrooms plus study across 140 square metres. We expect to see more of these family-friendly apartments added to masterplans in the future.

The Melbourne property market in 2024 has seen more families opting for apartments. Here we see a young woman on a balcony enjoying the view from her apartment. She is drinking a from a mug and smiling.

Focus on high quality open spaces

Incorporating open spaces into apartment plans enhances quality of life for residents by aiding social interaction and fostering a sense of community. As developers seek to attract a new demographic of apartment buyers we’re seeing a bigger focus on rooftop gardens, amenity green spaces, playgrounds, and indoor sports and recreation facilities. Not only do these spaces aid liveability, but they also improve the aesthetic appeal of apartments making them more attractive to potential buyers and renters.

Apartments no longer considered transitional spaces

Traditionally, apartments in Australia were seen as transitional living spaces, primarily catering to young professionals, students or those in temporary situations. This perspective has changed with apartments now considered to be a viable and appealing long-term living solution for a broader demographic. This has been driven by affordability, urban planning and our ageing population along with modern lifestyle preferences shifting towards convenience, sustainability and community. As these trends continue, apartments will likely play an even more significant role in shaping the future of urban living in Australia. 

About Red23

Red23 is a leading sales and marketing partner for new land, townhouse and apartment communities across the eastern seaboard of Australia. We specialise in custom and data-driven strategies that turn prospective buyers into proud owners and help build thriving communities.

Since opening in 2007, we’ve built strong and lasting relationships with Australia’s leading developers and become a natural extension of their teams. While our clients have diverse projects, they all want the same thing - an agency that will pull out all the stops to deliver exceptional results.

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