This is a new burgeoning sector in Australia, very much following the lead of the UK which has been developing this sector for several years now. Leith Group Developments are actively following this sector, seeing the many positive opportunities for investors and communities alike.
What people want:-
10-20 mins from anywhere you want to be, convenience, luxury, health and wellbeing, lifestyle, sustainability, purpose built, flexible, and a strong community vibe.
Facts:
- In Australia today there are 39 Projects in development, 15,423 apartments and they average 395 units per project with total investment of approximately AUD 9.4B.
- Forecast for the next 10 years is 120,000 apartments which will make up 5% of the rental market.
- Typical makeup of the apartments is: 5% 3 beds, 1 bed (65%) or 2 beds (30%).
- The product is diverse, targeted at both millennials, and families. Rental premiums at 15-25% (conservatively 10%) or offered at a discount to market – based on management.
- Building management systems and technology integration are essential as a high percentage of costs related to each project is operations and maintenance.
- Next 3-4 years Leith Group expect to see enhanced demand for housing within major cities as immigration and people returning to large cities from regional Australia resumes with momentum post COVID. Immigration will be 250,000 per year v 160,000 and regional areas will lose shine.
Do you like the sound of this new product?
