From Andrew Wood at Wood Property Melbourne
Apartment demand to grow as Covid recedes
If you are an apartment owner you have no doubt seen how the apartment market has not enjoyed the same recent surge in values as the house and regional property markets have.
Putting Covid aside for a moment (wouldn’t that be nice) one of the many attractions of apartment living is its proximity to everything you normally need in life such as the office, university, cafes, restaurants, bars, public transport, parks and gardens, bike and walking trails, sporting venues, theatre, etc. Apartment living is as much about embracing life outside the apartment as it is about life inside. Covid and the numerous lockdowns has meant the attraction of all the things we love to do outside the home have been reduced, and the home has to do so much more. Consequently, (for the time being at least), apartment living appears slightly less attractive than it was.
However property ownership of all categories has always been a long term proposition and the macro trends will always drive the longer term growth. Additionally, the relative price gap between a house and an apartment will only ever stretch so far before one starts to look expensive or the other cheap.
One key macro driver is population growth and the associated need for housing. It’s expensive for governments to install the infrastructure required to grow the urban fringe for conventional housing so apartments will need to do much of the heavy lifting to accommodate this demand. Another factor is that we are social beings, and while Covid as forced many of us to work from home and not mingle as much, the human need for interaction will prevail. Office work, hospitality and events will return when they can, and so too will the benefits of apartment living.