Watch out McMansions, the demand for the one bedder is on the rise!
With fifteen one bedroom apartments currently on offer through the Stone network, we thought it was time to see what it is that makes these “space challenged” homes so popular.
Like any other property, the one bedder comes in all shapes, styles, and sizes, but what is it exactly that makes one bedroom apartments hot right now, and their little brother the studio apartment, well… not?
We’ve found that as one bedroom apartments contain a separate bedroom and living area, and usually a full kitchen and bathroom, it offers more privacy, is more livable for longer and is somewhat easier to decorate than a studio.
Studio apartments integrate the bedroom, living room and the kitchen into one living space. Their bigger counterpart would be a loft apartment, a really huge open space that you would separate with furnishings etc. The studio is usually quite small, anything from 30m2 up.
So who is buying these mini homes?
One bedroom apartments are much sought after by first homebuyers, wanting to get into the booming Sydney property market. Investors are also keen purchasers; however with the rental yield weakening slightly their demand for these properties has dropped off slightly.
As much as they are affordable, there are a few concerns from buyers when it comes to purchasing a one bedroom apartment.
Some of these are;
- When the property is under 50m2 the lender will require more of a deposit,
- Investors are concerned with the rent versus the mortgage repayments
- Over capitalising
- Rate of capital growth and resale
- Lack of space.
Tulo Sila has had quite a bit of experience selling one bedders,
“The smallest I have sold is 30m2 internally, not including the balcony. That is the size of a double car space. So yes, tiny!
Tulo recently sold 6/2 Monash Parade Dee Why this year and was amazed, and thrilled, with the price he achieved for his vendors. It became the highest price achieved for a one bedroom unit in Dee Why.
"This (property) was a 30m2, 1 bedroom apartment and it sold for $936,000. That is over 30,000 per square meter! Luxury homes in Singapore sell for 11,000 per square meter. This apartment, only 4 years ago, was worth $480,000. This is the highest priced 1 bedroom sold in Dee Why per square meter."
So this shows that capital growth can be big no matter how small the home.
One of the smallest currently available is 4/42 Howard Avenue Dee Why being 25m2 internally with an additional 14sqm of carport. Toby Martin, Stone Dee Why, is the selling agent for this property and says the best selling point of this particular property is its very clever use of built in cabinetry creating a clean flow to the home.
Possibly the largest one bedroom – and the one with what has to be the best view ever- is 11/7 East Crescent St, McMahons Point, marketed by Annika and Aaron Bongiorno.
At 73sqm of living space, and with an enormous amount of style, this is one very appealing apartment.
There are many way of making small spaces work – one of our favourite sites is www.apartmenttherapy.com - on any budget you can create a versatile and functional home for even the smallest of apartments.
For a great stepping stone into the market place, to downsize, or to invest- why not take a look at the one bedder- they will surprise you.
Great things DO come in small packages after all…