Townhouses are increasing in popularity.
Did you know that the age of the attached dwelling is well and truly here?
What we mean is that the number of people choosing units and townhouses is growing and the number of people opting for houses is reducing.
Of course, our love affair with beautiful houses is not going to disappear anytime soon, but there has certainly been a societal shift when it comes to the types of properties that people prefer to live in.
How popular are townhouses in Melbourne?
The rise and rise of townhouses is not just evident anecdotally, with the latest Census results also recording increasing numbers of townhouses and semi-detached properties.
Now, this is a trend in Greater Melbourne as well as across Australia, too.
In fact, in 2011, 9.9 per cent of our nation’s housing stock were townhouses, but five years later that percentage had ramped up to 12.7 per cent – or an increase of some 285,000 dwellings.
In Greater Melbourne, by 2016, 16.8 per cent of housing stock were townhouses – up from 11.6 per cent five years before, according to Census data.
It’s no great revelation that townhouses provide a “happy medium” for both homeowners and investors.
That’s because they generally offer more space than a unit, sometimes as much as a house, but at a more affordable price.
However, a major reason for their skyrocketing popularity is that they are often located in superior locations to boot.
Whereas some homeowners or investors might struggle to afford to buy or build a house in these locations, the numbers are quite different for townhouses.
From an investment point of view, new townhouses also provide great opportunities for healthy yields because of the strong demand from tenants to live in these types of properties.
Townhouses can be a great source of income for investors
Savvy investors have long recognised the profit potential in small property developments like townhouses.
Whereas, one house on one lot will produce one rent, by building townhouses (subject to relevant zoning) investors are able to benefit from double or even triple the property love.
Not only have we helped many clients build beautiful properties, we have helped them secure significant cash flow from the multiple rents coming in from one block of land.
If, and when, they decide to sell some or all of the properties, after strata titling, they can also achieve solid profits from the multiple dwellings in one location.
Another factor behind our growing love affair with townhouses is that global cities like Melbourne are not growing any more land and nor is any other big city!
With our booming population, all of those new residents will need somewhere to live and more and more would prefer to be closer to the action than not.
This fact has been recognised by the Victorian Government, with reforms to its residential zones announced last year that will see ultimately more townhouse development across the city.
Not only is demand for this dwelling type soaring, its design is evolving, too, with new features being incorporated such as a greater emphasis on natural light and storage as well as plush carpets, contrast tiles and reconstituted stone benchtops inside.
As you can see, there is no doubt that townhouses have come of age – with the only way for them to go being up in the years ahead.