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The
Propertybuyer

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Hear the latest weekly insights into the property market via podcast by Rich Harvey, CEO and founder of Propertybuyer.

 
Fri 29 Nov '24 with Rich Harvey How to Make Better Financial Decisions
 
 
Fri 15 Nov '24 with Rich Harvey How Will the Future of the Real Estate Industry Evolve?
 
 
Fri 1 Nov '24 with Rich Harvey Sydney’s Lower North Shore - Perspectives and Insights
 
 
Fri 20 Sep '24 with Rich Harvey How to Invest or Buy Commercial Property
 
 
Fri 6 Sep '24 with Rich Harvey Breaking Gender Barriers, Creating Empathy & Other Empowering Strategies
 
 
Fri 23 Aug '24 with Rich Harvey Where to invest for around $500k?
 

 

Listen to many more
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Propertybuyer Blog
Property advice, market updates & more

 

One-bedroom apartments: Stepping Stone or Smart Investment?

June 14, 2024 / Written by Rich Harvey

 

With the property market softening slightly, many home buyers and investors are eyeing one-bedroom apartments as a practical and affordable entry point. Traditionally seen as less desirable, one-bedroom apartments are gaining traction. So, are they still a risky investment?

Absolutely not! One-bedroom apartments can offer excellent ROI (Return on Investment), especially in major cities like Sydney, Melbourne and Brisbane. This shift is driven by several factors:

  • Changing demographics: More single-person households, later marriages, and a growing desire for inner-city living all contribute to the demand for smaller, convenient apartments.
  • Shifting priorities: Today's buyers prioritise affordability and convenience over sheer space.
  • Affordability: With house prices out of reach for many people, apartments offer much better value for both investors and owner-occupiers.

However, not all one-bedroom apartments are created equal. At Propertybuyer, our buyers agents consider these crucial factors when evaluating one-bedroom investment opportunities. Below is what our agents look out for when identifying the best suburbs to invest in Australia in 2024.

Prime Location is Key for One-Bedroom Apartments;

Location reigns supreme when it comes to one-bedroom apartments, especially in cities like Brisbane and Melbourne. Ideally, you should only consider one-bedroom apartments in Brisbane or Melbourne if they’re as central as possible—no further than 5km to 10km from the CBD. This caters to the typical one-bedroom buyer who prioritises convenience and a close commute. They're willing to trade some space for a central location that offers a vibrant lifestyle.

Walkability Matters:

Look for properties close to amenities like cafes, restaurants, and dry cleaners. Since one-bedroom apartments often have limited living space, having these conveniences within walking distance becomes even more crucial. It allows residents to maximise their compact living areas and enjoy a vibrant lifestyle without relying solely on their apartment.  This is especially important in cities like Brisbane and Melbourne, where a walkable lifestyle is increasingly sought-after. However, don't overlook the convenience factor in Sydney either. Many desirable areas in Sydney City offer a vibrant mix of apartments and walkable amenities, perfect for those seeking a compact and convenient lifestyle.

For a wider selection of 1 bedroom apartments in Sydney City, connect with a reputable buyers agent who can help you find a property that aligns with your needs and preferences.

So, are apartments a good investment in Melbourne & Brisbane? Absolutely, especially if they meet these location criteria.

Building Style and Amenities:

While location is crucial, the building itself also plays a significant role in your investment's success. Here are some key style considerations, especially for those looking for the best place to buy investment property in NSW, VIC & QLD.

  • Avoid Oversupply: Steer clear of generic high-rises in overdeveloped areas. An overabundance of similar one-bedroom apartments can negatively impact both capital growth and rental value.
  • Embrace Character: Consider older, boutique apartment blocks with a unique charm. These can offer a more desirable aesthetic and potentially higher returns on investment.
  • Research Building Popularity: Investigate the overall reputation and desirability of the entire building complex before purchasing. A well-maintained and popular building attracts better tenants and fosters a sense of community.

Apartment Size and Features:

  • Minimum Size: While one-bedroom apartments are by definition compact, aim for at least 50 sqm. Apartments smaller than this may be difficult to finance and resell.
  • Balcony Bonus: A balcony is a highly desirable feature, especially in a small apartment. It provides valuable extra living space and enhances the overall appeal for potential tenants.
  • Maximising Space: Look for apartments with built-in storage solutions or additional storage space within the building. This helps residents maximise the limited space within the apartment itself.

Amenities

While convenient, parking isn't always essential for one-bedroom apartments, especially in well-connected areas. However, consider the following:

  • Accessibility: If the location lacks easy access to public transport and amenities, secure parking can improve your resale prospects and generate rental income by leasing it out.
  • Public Transport: In well-serviced areas with strong public transport links, parking may not be a deal breaker.
Views and Natural Light:

Views can significantly enhance a one-bedroom apartment by creating a feeling of spaciousness and light. Look for apartments with larger windows and a desirable outlook over the district, water, city, or gardens. Good natural light is essential in a smaller apartment to maximise the sense of space. 

One-Bedroom Apartments: A Smart Investment

The perception of one-bedroom apartments as solely budget options has shifted.  Data shows they've experienced solid growth in recent years, making them a viable investment, particularly for first-time buyers.

A Buyer-Friendly Market:

Current market conditions offer a rare opportunity for buyers. While the future is uncertain, if you've been considering entering the property market, a one-bedroom apartment could be a strategic springboard. Consulting with a buyers agent in Melbourne or Brisbane can help you navigate the market and make a well-informed investment decision.

 

The Propertybuyer
Podcast

 
Fri 29 Nov '24
with Rich Harvey
How to Make Better Financial Decisions
 
 
Fri 15 Nov '24
with Rich Harvey
How Will the Future of the Real Estate Industry Evolve?
 
 
Fri 1 Nov '24
with Rich Harvey
Sydney’s Lower North Shore - Perspectives and Insights
 
 
Fri 20 Sep '24
with Rich Harvey
How to Invest or Buy Commercial Property
 
 
Fri 6 Sep '24
with Rich Harvey
Breaking Gender Barriers, Creating Empathy & Other Empowering Strategies
 
 
Fri 23 Aug '24
with Rich Harvey
Where to invest for around $500k?
 

 

Listen to many more
podcasts on our
Podcasts page.