Melbourne Residential Outlook Report 2024

14 It’s interesting to observe that two and three-bedroom apartments are perceived to be the most in demand in the current market. Whereas currently we see a very high demand for one-bedroom apartments, compared to three-bedroom units at present. This demand is primarily driven by affordability, catering to the needs of first home buyers (FHBs), and investors via channel sales. Moreover, it’s not just investors in general but specifically Self-Managed Super Fund (SMSF) investors who are largely driving sales currently. This trend is fueled by Australia’s love of property and although individuals may not have enough equity or serviceability for a traditional investment outside of super, however have sufficient assets in their superannuation to acquire property. Interestingly, with the average House and Land (H&L) package in regional and metro Melbourne now priced in the low $700,000s, a one-bedroom apartment under $550,000 is predominantly the product of choice for FHBs and SMSFs currently. This trend is expected to continue. Demand configurations