What fuels strata purchases?

What fuels strata purchases?

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Low maintenance living remains a key driver for those looking to enter the strata property market, a landmark new report has shown.

The report also showed that while the property’s location, affordability and design were key components for owners and investors seeking to purchase an apartment or townhouse, the reputation of the developer responsible for the development also played a role.

When asked to identify their choice decision process, the character and status of the individual or group behind the development impacted seven per cent of all strata property purchasers and investors nationally.

It mattered most in Victoria, where 11 per cent of strata purchasers factored it into their decision. However, just eight per cent of Queenslanders rated it as important and just seven per cent of NSW-based strata buyers felt similarly.

The findings were disclosed in the 2021 Australian Apartment Advocacy Survey, a biennial report that looks at what strata buyers are seeking and enjoying about their apartment purchase.

Nearly 3,600 strata residents were grilled on all matters relating to strata living from the occupation of the main income earner to their plans for future customisation.

Typically, most residents chose an apartment over other property types because it was easier to care for and maintain and it was the right size for what they needed. Investors chose an apartment because it was easier to care for and maintain, was all they could afford and was cheaper than other types of property in the location they were looking.

The report showed that of the resident owners and renters of Australia’s three most populous states who moved into an apartment during the survey period, most moved out of their previous home for a variety of reasons, with the most prevalent being wanting something with less maintenance.

In identifying reasons for their move, 34 per cent of Victorians say they wanted something with less maintenance, 17 per cent said it was because they wanted something smaller and 16 per cent noted that it was because the time was right to downsize.

Those in New South Wales felt similarly, with 26 per cent noting they had chosen to move into a strata property from their previous abode because they wanted something with less maintenance. Nearly one in five (18 per cent) said it was because their kids had left home and the timing was right to downsize, while 14 per cent were motivated to move because they were actively seeking a smaller property.

Unsurprisingly, the results were slightly different in Queensland, where 44 per cent say they moved out of their previous home because they wanted something with less maintenance, however nearly one in three (32 per cent) say they were motivated to change because they wanted to live closer to the beach, bay or river. One in four (25 per cent) made the move because they felt it was time to downsize.

Negative media reports about some of the concerns around buying strata residences off the plan appeared to have had little impact, with nationally around one in three purchasing their strata property via this method, the report showed.

Victoria hosted the highest number in this group, with 37 per cent of strata owners and investors stating that were the first owner, either buying off the plan or once their apartment had been completed. In NSW just 32 per cent were the first owner while in Queensland just over one third (34 per cent) purchased their apartment brand new.

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