Townhouses have been around for a long time, with demand for this type of dwelling picking up more recently and is expected to increase.

Where is all this demand coming from?

There are two key demographics creating the demand – young families and retirees.

Young families

The demand from from young families is coming in quality, blue-chip suburbs where the median house price will often be well above their affordability and comfort level.

These young families are happy to live in large accommodations, but on a compact block of land, while still enjoying the benefits of living in a premium suburb.

There are also many benefits for young families;

  • Easier access to Employment hubs with public transport and infrastructure
  • Ability to get into better school catchments at a lower entry price
  • Easy access to lifestyle and entertainment precincts
  • Low maintenance living.
  • Reduced travel time as our roads get busier

Quite often they will be buying a 3 bedroom, 2 bathroom, 1 car townhouse that will fulfill all their needs with a small family.

Retirees

At the other end of the scale, we have retirees and baby boomers.

In many cases, they are heading towards or have retired already and the kids have left the nest and are living elsewhere by now.

They find themselves with a big 4 or 5-bedroom family home that is too big for their needs and maintenance starts getting too much.

These retirees are now looking to downgrade but they still want to stay in the same location, the suburb they may have lived in for the past 20-30 years which is still close to family, friends, doctors and hospitals.

They can easily sell their home for a considerable amount and then downgrade into something like a townhouse with a great deal of change to spare that allows them to continue living comfortably.

A two or three-bedroom townhouse is often ideal as they have their own quarters and perhaps a study or home office and there is room for a friend or family member to stay if need be.

Choosing the right townhouse

Firstly, ensure you review the location. Consider factors such as:

  • Access to large employment hubs – CBD, Airport, Hospitals
  • Access to public transport
  • Lifestyle and convenience

Then review the townhouse itself, and consider those the potential tenant

  • At least 2 bathrooms, including a powder room on the ground floor
  • Courtyard for outside space
  • Point of difference – large courtyard, end unit with side access, internal access from the garage, study nook, communal amenities

In summary

There is expected to be an increased demand moving forward for townhouses in well-located areas as younger families look to push into superior locations and existing homeowners downsize into low-maintenance living.  Ensure you review the location and townhouse layout to ensure you are working to what potential tenants would want to see.

 

References: https://propertyupdate.com.au/why-townhouses-are-the-investment-of-the-future-and-how-to-find-the-right-one