So are Australian properties getting smaller or larger on average? The answer means a lot to investors.
The key metric for anyone investing in property is their return on investment and, when a property’s total value is calculated in value per square metre, the footprint of a property shapes its value as an investment.
Of course, property size isn’t just good for understanding a property’s value. It’s also a valuable draw-card for potential tenants who will always be looking to get more for their money and will place a premium on a larger house.
So it may surprise landlords to learn that Australia’s homes are actually shrinking. That’s according to CommSec, which has published figures finding that the size of new builds in Australia has hit a 20-year low. Across the country, the average new home is now 186.3 square metres, down 1.6 per cent in the last year.
Behind this shift is a change in features. We’re seeing more apartments popping up across the country and even stand-alone homes are being designed smaller to suit the needs of retirees and young couples. CommSec also suggested that today’s homebuyers are more interested in amenities like nearby cafes and are willing to sacrifice size for the right neighbourhood.
For landlords in Canberra, there’s not too much to worry about. Homes in the ACT are still the second-largest in the country at an average of 242 square metres, behind only Victoria. So, while homes across the country are shrinking, those in Canberra are still coming with the large footprint renters are after.