Why luxury apartments are getting bigger and ditching the maintenance

Are you considering downsizing, but don't like the idea of having to squeeze into smaller digs?

Well, a new report into luxury apartments shows you are not alone. And developers are responding.

The national “Rightsizing Report” by real estate group McGrath showed the number of bedrooms and size of apartments in new luxury apartment developments is on the rise.

“After identifying the emerging rightsizing trend in Australia back in 2020, there has been more than double the delivery of apartments with three or more bedrooms, and the average apartment built was one-third larger,” said McGrath’s National Head of Research, Michelle Ciesielski.

By 2028, 40% of apartments in prime regions of Melbourne and Brisbane will be delivered with more than three bedrooms, 34% on the Gold Coast, and 31% in Sydney, according to McGrath research.

An average prestige three-bedroom apartment size is forecast to start from 160 square metres in Melbourne in 2028, from 166 sqm in Sydney, 172 sqm in Brisbane, and 190 sqm on the Gold Coast.

“When downsizing from a standalone prestige home, many buyers have been seeking a luxury apartment offering at least three bedrooms,” Michelle said.

“Developers have prioritised building more in response.”

She said owners were not always looking to use all the bedrooms at all times, but offered space for certain times of the year to have space for visiting family.

Family time

“It might be a family compound where people come together at celebrations,” Michelle said.

“The parents may live there throughout the year, but also want enough space to accommodate family when they come to town, especially when they are in lifestyle locations near the beach or water.”

While super-sized apartments dominate in the luxury end of the market, she said the trend for more generous apartment sizes had developed across all price levels.

“When we started to look at apartments in general in 2014 in Australia, they were being built for investors and there wasn’t that concept that people were looking at buying an apartment to live in themselves,” she said.

“Now developers are recognising that people are moving out of quite large homes with multiple living areas and storage.”

Along with more bedrooms, high-end apartments are also getting more car spaces and attracting higher prices for them.

Sydney held a 62% price premium for three-bedroom apartments sold with more than four car spaces compared to having one, Brisbane was 47%, Gold Coast was 46%, and Melbourne was 41%.

The study focused on luxury apartments with a price range of $10 million and up in NSW and $5 million in Victoria and Queensland.

Luxe for less

However, it was noted that the high-end trends could influence what is happening to apartments across the market.

“Luxury apartments are a leading indicator for the standard of the quality that trickles down,” she said.

“The house-like proportions, the benefits of how space is used, these designer elements can be used in a more savvy way as they trickle down to core apartments,” Melissa said.

While those moving to luxury apartments may want to retain larger living spaces and top-notch lifestyle elements such as pools and wellness centres, they are keen to cut back on home maintenance.

The report found that in the luxury sector, apartment living can cut maintenance costs.

In 2025, the average estimated quarterly expense for maintaining a prestige apartment in a luxury high-rise with low amenities ranged from $4,500 to $8,000.

A prestige apartment in a luxury high-rise with high amenities averaged $8,500 to $12,500.

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This article was originally published on view.com.au and appears with permission.

Header image of Arcilla New Farm.