A growing number of investors are choosing to buy apartments over houses, according to PRDnationwide.
PRDnationwide research analyst Josh Brown said while the non-maintenance aspect of an apartment was a strong draw card for buyers, units are also commanding high rents which is attractive to investors.
Moreover, older style flats are expected to appreciate in value more quickly than houses moving forward.
“They are the entry point to the market, have low body corporate fees and tend to be in good areas close to public transport” Mr Brown said.
According to Mr Brown, choosing apartments close to transport corridors, in locations where land availability is scarce such as river-front properties, and areas with desired amenities including schools and shops are the best ways to attract strong rental returns.
While Tony Maher of PRDnationwide Coolangatta/Tweed Heads said Australians have traditionally viewed the residential house as a primary class asset and apartments as a secondary asset class, the tide is starting to turn.
“The trend is shifting to making unit ownership more acceptable or less undesirable. There are of course many reasons for this change however the most dominant issue I believe is a rapidly ageing population coupled with a rise in the number of families with fewer children and both parents engaged in the workforce,” Mr Maher said.