An emerging market for boutique townhouse developments is growing in Melbourne.
Local market insight has indicated stronger buyer demand for well-located boutique townhouse developments as well as larger over-sized apartments in our nations capital cities, as more buyers seek out valuable land content in favour of overcrowded apartment blocks.
In fact, approvals of new townhouses in the 12 months to September are at record highs, with almost 34,000 new semi-detached, row or terraced dwellings given the green light by planning authorities nationally.
This represents a 14% increase on the same time last year, whilst also reflecting a greater share of all new higher-density dwellings approved.
‘HV’ 48 Hill Street, a boutique development of 10 townhouses in East Bentleigh has been popular amongst owner-occupiers and higher earning professionals.
Of the 120,264 approvals in the multi-dwelling sector over the year to September, townhouse approvals made up 28.2%, up from 3.2% from a year earlier.
With an abundance of CBD high-rise apartment developments on the go or in the planning pipeline, owner occupiers and savvy developers are increasingly turning their attention towards the growing townhouse market.
One of the greatest assets and appeals of townhouse developments is the greater certainty of valuation when it comes time to settle – whilst alternatively valuers are warning of newly completed apartments being valued on average at an alarmingly high 10 to 15% below sale price.
“We’re beginning to notice amongst our clients a growing demand for higher-end, larger style townhouse developments in well-located middle-ring suburbs of Melbourne, particularly for older couples looking to downsize as well as higher earning professionals that want that additional sense of security and privacy that townhouse living provides.” – Riveren’s Sophearom En.
BKK Architects Simon Knott agrees noting that “these townhouses are exactly what downsizing baby boomers and professionals are looking for.”
As our cities continue to grow, particularly in Melbourne and Sydney, increasing populations will place greater pressure on the need to increase building density in our middle ring suburbs – those within 5 to 20kms from the CBD.
Whilst high-rise developments will continue to play a role in our wider property market, particularly in and around the CBD, townhouse developments will continue to grow due to them being more suited to urban infill locations and garnering greater support from local council and residents alike.
If you’re interested in learning more insights about our local property markets, feel free to speak to one of our property investment professionals today!
Source: afr.com.au.
