Affordable Housing Profile
nettletontribe was profiled by the Australian Financial Review recently in the story entitled 'Apartments Begin Shrinking'.
Jeremy Bishop, one of the firm's key Directors was interviewed for the story, alongside Fraser Property Group's Stanley Quek, Charter Keck Cramer’s Robert Papaleo and KPMG's Bernard Salt.
A significant shift in housing demand is underway across the country, driven by a greater focus on affordability. nettletontribe is currently reworking the approved plans of several Sydney projects, some of them large, multi-stage developments of up to 600 apartments.
Jeremy said the reworking involved reducing bedroom space, removing second bathrooms, and getting rid of three-bedroom apartments altogether, while keeping quality fittings and spacious living areas.
Councils are usually happy to approve them as long as the building doesn’t change shape, albeit with an extra six to nine months’ wait.
“Developers are saying, “How much can we spend to deliver this apartment?” which is much less than it was during the boom.”
Jeremy continued,”What people are finding now is there is a ceiling on what people can afford to spend. Two-bedroom apartments are decreasing from 100sqm to 75-80sqm or less, while one-bedroom apartments are shrinking from 60sqm to about 45-50sqm."
The trick was to be clever about spatial design so buyers didn’t feel they were buying anything inferior.
“Although there could be one bathroom, it could be a two-way bathroom where you have access from the bedroom and the corridor, and there could be a separate toilet.”
KPMG demographer Bernard Salt said many buyers were looking for a hotel-style apartment, with most living and socializing taking place elsewhere – in restaurants, the gym or the workplace.
“I think this is something town planners have struggled with,” Mr Salt said. “They think everyone wants to be part of a village or community. There is a requirement for precincts, even whole suburbs, where people simply want a bolt-hole.”