I’ve talked before about the demand for high-end properties in Potts Point, but it’s not just the more affluent buyers driving the suburb’s property market.
We love talking about a record sale or modern new penthouse, but much of Potts Point property – and the demand here – is for one- and two-bedroom apartments. Let’s take a look at why these apartments are the most popular in Potts Point, as well as what else buyers are looking for now.
The popularity of one- and two-bedroom apartments in Potts Point
Potts Point is the second-most densely populated suburb in all of Australia (Melbourne’s inner city tops the list), so of course apartments make up the majority of its housing stock. 88% of Potts Point dwellings are units and almost half have only one bedroom. Add studios and two-bedroom units to the mix? That covers a pretty staggering 90.6% of all Potts Point residences, according to the Australian Bureau of Statistics.
But don’t be fooled into thinking that the popularity of these smaller apartments is just because of limited space. Young professionals are coming in droves for homes that meet their lifestyle needs, as well as allowing for a pretty easy commute into their city-based jobs. For many single or coupled-up first home buyers, studios or one-bedrooms are a great starting point, but even young families are buying up smaller apartments to call home for the short- or medium-term.
What is the market like for one- and two-bedroom apartments in Potts Point?
It might sound like a cliché to say there’s something for everyone here, but it’s the truth when there’s so much choice – both for amenities and for budget. Take one-bedrooms, for example, which have a median price of $640,000. I recently sold this great apartment for $687,000. It’s the perfect choice for young professionals, thanks to an easy commute and a kitchen that allows for the essentials while recognising the desire to enjoy the area’s great restaurants.
On the flip side, for buyers needing a little more space, the larger floor plan, outdoor terrace and car space of this $1.5 million sale make it a good choice for young professional duos or those just starting their families.
When you get into the two-bed territory, we often find similar buyer types, or perhaps more established young families. The classic two-bedroom apartments are characterised by car spaces, more spacious kitchens or dining areas and a courtyard or balcony for a bit more room. This apartment I sold recently for $1.125m is a great example, with city views just adding to the pros without taking it over the $1.37m median.
But what about 3-bedroom apartments?
Demand for larger apartments is only increasing. In fact, demand is often higher than the supply, with only 5.3% of dwellings in Potts Point having 3 bedrooms, so they’re harder to come by and they do tend to command a higher price. These larger units are also incredibly popular with downsizers, providing enough space for visiting family without compromising on lifestyle.
This beautiful 3-bedroom, 2-bathroom apartment with harbour views is the epitome of what these buyers are looking for. I sold it for $4.1m, almost right on the median price of $4.15m. But luxury penthouses are also in high demand in the 3-bedroom category, like this $15.5m two-storey apartment I sold recently.
And prestige properties, terraces and townhouses?
They’re as popular as ever, with the market staying very hot despite fluctuations across the lower section of the market. Terraces and standalone houses only represent 10% of the market, so getting a chance to buy is rare. The tight supply, means price tags are much larger in this category too. They are popular with families with larger budgets, or even with renovators or downsizers moving from large homes in the area.
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