Inner Melbourne’s apartments are getting tinier with each new development. But, how small is small? Secret Agent’s updated apartment index reveals that the average size of a 1 bedroom apartment is only 47sqm, and for the more popular 2 bedroom apartment the average size is 73sqm.
These figures are frustrating for many homebuyers looking for an apartment that they can actually live in comfortably. Our index, which is based on 870 apartments in inner Melbourne which have sold between the 1st January 2016 and 30th June 2016, offers some insight into where buyers can find apartments with larger than average floor plans.
East Melbourne has the largest two bedroom apartments. At almost 90sqm on average, this was a standout with the second largest 2 bedroom apartments being 10sqm smaller at 80sqm in Port Melbourne. These suburbs are generous with the size of their apartments, most likely due to the properties occupying the top end of the market. Buyers here are much more willing to pay for additional space and are not as price sensitive. This means a developer in these areas may be able to sell bigger apartments and still get a similar profit to what they would if they sold more smaller apartments.
On the other hand, Travancore and Prahran have the smallest 2 bedroom apartments at 57.6sqm and 60.9sqm respectively. A younger demographic is attracted to these suburbs and thus they tend to be more price sensitive. Developers here have designed smaller floor plans and perhaps would be penalised if they built apartments too large in size. The investor market is also more prevalent in these suburbs.
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