Why townhouse demand is increasing in popularity
When it comes to buying property, there are all types of properties available in the market including new apartments, house and land packages and established housing. All these housing types gives buyers even more decisions to make. However, townhouses are becoming an increasingly popular choice for buyers. During the first 10 months of 2016, buyers have purchased 854 townhouses, a 4.4 per cent increase compared to the same period last year.
Interestingly, the demand for detached houses has dropped by 3.6 per cent over the same period. Although houses make up the largest sector of the sales market, townhouses are starting to see an increase in demand, helped by a change in buyer tendencies and attitudes.
Townhouses provide a more affordable property choice
Today, more property buyers are attracted to townhouses which provide a much more affordable property choice for many. The detached housing market has also seen strong price growth, which in turn is making it increasingly harder for buyers on a stricter budget including first home buyers to enter the property market. Because of the increasing property prices, it is becoming even more important that developers provide more affordable housing to appeal to the wider market, especially as the price of land and house prices are only heading upwards, whilst wages are not following this same pace of growth. Townhouses are one way of creating affordable housing in the market.
To keep housing more affordable, developers and builders are creating efficiencies and housing diversity. According to the latest ABS townhouse stats, there were 1,030 townhouses approved during the first nine months of the year, an increase of 40.5 per cent. This works out as almost an extra 300 new townhouses compared to last year. Today, approval rates sit at the third highest on record.
As the supply of new townhouses are rising, this is helping to meet the increased demand levels. During the first ten months of the year, allhomes.com.au listed 1,089 townhouses, which has grown annually by 5.2 per cent, or by an additional 54 listings.
Even though townhouse supply is rising, the prices for townhouses also made a 5.4 per cent gain over the year to reach a median price of $433,000. However, this figure is far more affordable compared to the region’s median house price of $631,500, which for many is still well out of reach.
Townhouses appeal to many buyer types
The great thing about townhouses is that they appeal to a large proportion of buyer types. Because of their affordability, townhouses suit those on a lower budget such as first home buyers trying to enter the market. Townhouses also incorporate the outdoor space which greatly appeals to family with children who want room for children to play, and provides a good entertaining space. Downsizers find the move from a larger home to a townhouse far easier, and provides less maintenance compared to the larger family home.
Townhouses also suit those who prefer multi-level living and may not find apartments as attractive.
Do townhouses make a good investment?
So are townhouses a good investment? Many of the new townhouses today are generally within close proximity of key amenities including public transport, schools, shops and dining opportunities, adding to the attraction and liveability appeal.
Many townhouses are also part of a complex, which might have shared communal facilities, providing a greater social interaction and neighbourly feel.
As property prices continue to rise, it is without a doubt that the appeal and demand for townhouses will also rise, especially as buyers are priced out of the detached housing market.
If you are interested in buying new townhouses, then the good news is that iBuyNew currently has a variety of townhouses for sale across Australia. Call us today on 1300 123 463 to learn more buying townhouses, no matter whether you are a first home buyer or an investor.
Published on 23rd of November 2016 by Marty Stanowich