Industry Focus

PROPERTY Living the high life Apartment living continues to gain momentum in Australia's biggest capital cities with location, affordability and lifestyle preferences all weighing in to produce a positive change in attitude WORDS: JACKIE NEVILL Apartment living in Sydney and Melbourne is increasingly seen as an acceptable alternative to the quarter acre block, says Frank Allen, Westpac's Director, Property Markets. "There's a definite shift in mindset that living in an apartment, you are not getting second best," he says. Figures from BIS Shrapnel show that apartment completions are an increasingly significant proportion of all dwellings constructed. Over the past three years, the figure jumped from 29 per cent to 38 per cent in Sydney, 19 per cent to 28 per cent in Melbourne, and 10 per cent to 17 per cent in Brisbane. 10 Industry Focus Acceptance in the other major cities is following more slowly. "We are witnessing the 'Manhattanisation' of our key cities, led by Melbourne, with Sydney and Brisbane not far behind," says Dr Kim Hawtrey, Associate Director at BIS Shrapnel. There are many factors driving this trend. Main working hubs continue to flourish in the CBDs, so with the country's population growth comes more congestion on the roads and the desire to live close to the city, says Allen. With land close to the city scarce and expensive, more people are choosing to live in apartments. Affordability is a major problem for Sydney in particular and it seems there's little relief in sight. According to BIS Shrapnel, Sydney's house prices are forecast to increase a massive 19 per cent over the next three years, which takes the median house price from $690,000 to $820,000. Dr Andrew Wilson, Senior Economist at Australian Property Monitors, says more Australians are also choosing apartments as a lifestyle preference. Lower energy costs, communal living, a more secure environment and a cosmopolitan lifestyle are all benefits. Wilson also says planning authorities are pushing towards brownfield apartment development, conscious of the

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