WA looks to apartments during COVID

WA’s apartment market stands to grow from the circumstances created during the global pandemic, leading demographer Bernard Salt says.

Speaking at today’s inaugural WA Apartment Advocacy State Conference, Mr Salt said COVID-19 had created a reimagining of lifestyle choices across every sector of the population.

“Apartments are part of that story,” he said.

He said a shift in what people expect from their living space came about during the pandemic, as some Australians were forced to reconsider their level of prosperity.

“We have upped the ante on how we expect to live, because we had 30 years of prosperity and a 100-year boom,” he said.

He likened the pandemic to a “control, alt, delete” moment where Australians were faced with a recession and reexamined their means.

About 175,000 people are living in apartments in WA and apartments, representing 7 per cent of housing stock.

Stand-alone houses still dominate the market, making up 74 per cent of WA housing stock.

Mr Salt said only a small shift would need to occur in WA’s apartment market for it to have a significant impact, because it was coming off such a low base.

He divided WA’s apartment buyers into four main segments – “hipsters in the city” aged between 25 and 38, “lifestyle corporates with or without kids” aged 39-54, “cosmopolitan lifestylers” in pre-retirement (55 – 64), “groovy grandparents” aged 65 to 79 and the growing “elderly and loving it” 80 plus segment.

He said there were opportunities for growth in each segment.

“At each stage of the adult life cycle, there’s a strong market in WA for Perth apartments,” he said.

“It’s not going to suit everyone – the main product is still housing, but we are seeing a targeted, nuanced product.”

The Australian Apartment Advocacy 2021 apartment survey showed that 79 per cent of Australians felt COVID had not impacted their appetite for apartment living.

Australian Apartment Advocacy director Samantha Reece said this was contrary to initial predictions about lifestyle choices during the pandemic.

“In apartments, in contrast to stand alone houses, people can self-isolate, they feel safe and secure, they know their neighbours so they don’t feel alone,” she said.

Perth Lord Mayor Basil Zempilas said it was key to create apartments where families could live and feel safe. 

He said one of his key priorities was making Perth a cleaner, safer place.