It’s not just about getting views but whether there’s financial benefit to being higher up or lower down.
Greville Pabst, CEO of WBP Property Group, recommends researching the target suburb to understand what’s influencing its home buyers.
“This will give you a very good indication of the type of apartment that will provide the best returns,” Pabst says.
“With that said, when looking at the performance of apartments, generally those positioned on higher/top levels tend to experience greater capital growth, being not only more attractive to investors and owners, but also to tenants.”
Top or bottom?
Pabst says there are pros and cons for upstairs and downstairs.
Ground floor apartment pros
“The main advantage of ground level apartments is they often include courtyard areas that are much larger than balconies, which can almost act as another room if positioned well.”
- Absence of stairs
“For areas with an ageing demographic, easily accessed downstairs apartments can be desirable.”
- No neighbours below
No need to worry about bothering underlying neighbours, especially if you have children.
Ground floor apartment cons
- Privacy/security concerns
“This is particularly so in inner-city areas, where a high proportion of the population are professional single female tenants and security is a top concern, and is reflected in rent prices,” Pabst says.
- Noise and disturbance
“Ground floor can be very noisy in regards to foot and vehicle traffic and being close to a side driveway means vehicle lights can often shine into living rooms.”
- Upstairs neighbours
“The noise produced by apartments above can be a huge concern for buyers and tenants.”
Upstairs apartment pros
- Improved views
Views attract a premium when selling, especially in cities and near water.
- More security and privacy
“Upstairs apartments are positioned further away from the street and generally have windows that are not accessible,” Pabst says.
- More natural light
This is important in the inner-city, where there is often more overshadowing from tall buildings.
Upstairs apartment cons
- Less appeal for retirees
“For areas where there are larger populations of older people, stairs are a major concern so investing in an upstairs apartment without lift access can be unappealing to buyers/tenants,” Pabst says.
- Can be hot
Depending on the apartment’s aspect, upstairs and top-floor apartments can sometimes produce much heat in summer.
What do agents say?
The experts say it really depends on the location and the type of buyers in the market.
Brisbane agent Tracey Ashley of RE/MAX United Vision in Carina recently sold a two-bedroom apartment for $400,500 to first-home buyers in Coorparoo.
It was on the third-floor, fully painted inside and had a renovated kitchen.
Ashley says she is finding “the higher up you are, the higher the sale price”.
“It was at the back of the unit block on the second floor and was a record for two-bedroom units in Coorparoo,” she says.
“Our office sold another one just before mine, exactly the same size, even the same layout, for $20,000 less ($380,000), and it had panoramic city views and was at the front of the complex on the first floor.”
Sydney business development manager Nick Christou of Breakfast Point Realty has been selling apartments in the suburb since 2010.
About 80% of Breakfast Point properties are apartments and townhouses, he says.
“There are about 1500 apartments and what we have found is, in terms of price, the top and ground floors command the biggest prices then the prices taper down to the middle floors,” Christou says.
He says when sales began in 2002, it was downsizing empty-nesters wanting the ground floor homes.
“Now it is often families with children wanting the greater space of ground floor apartments, so demand is very strong from the broadest part of the market.”
This article was sourced from realestate.com.au