Market/Finance News: Medium density dwellings increase in popularity nationwide

By the resi financial blog team, 19 February 2014

Investing in Medium density dwellings

Medium density properties have increased in popularity across the nation, which could be interesting for anyone considering property investment in the near future. 

According to the latest Bankwest Housing Density Report, new home approvals for medium density properties like apartments, townhouses and semi-detached houses increased significantly over the 12 months to October 2013, rising by 43.4 per cent - beating out the previous year's level of just 39.8 per cent. 

Mark Reid, executive general manager for Bankwest, said that Australians are beginning to turn towards medium density housing as opposed to stand-alone properties as the population continues to grow. With this growth expected to continue into the near future, these properties are only expected to continue gaining strength. 

"The increasing popularity of medium density housing is possibly being driven by Australia's first time home buyers, who are finding it difficult to afford a stand-alone house," said Mr Reid in a February 18 statement. 

"Bankwest's First Time Buyer Deposit Report, released in October last year, showed that units are a considerably more affordable option, taking first time buyers 3.4 years to save for a 20 per cent deposit on a median-priced unit compared to 4.2 years to save for a stand-alone home." 

For those considering investment loans in the near future, this could be something to take note of. Furthermore, capital cities also accounted for 87.1 per cent of these approvals, with five cities having over half their approvals for the 12-month period being medium density dwellings. 

Sydney had the highest proportion (68.3 per cent), followed by Canberra (68 per cent), Darwin (67.9 per cent), Melbourne (54.6 per cent) and Brisbane (53.4 per cent), which could indicate great areas to consider looking for potential property investment opportunities.

Categories: Property Investment