Rightsizer prime luxury market trends to lookout for: Knight Frank
Recent research conducted by Knight Frank's partner and head of research, Michelle Ciesielski observes a shift in the narrative from downsizing to rightsizing due to changes in the lifestyle trend towards apartment living.
Trends to Monitor
The 'Australian Prime Residential Insight 2020' outlines some of the trends that are expected to influence the rightsizer prime luxury market in the coming years.
1. 'Active Retired' Transforming the Retiree Lifestyle
Unlike past generations, the 'Active Retired' group hold a passport with many stamps, they are educated, willing to engage in smart technology and encouraged the change in definition for their next home purchase to 'rightsize' rather than 'downsize'.
2. Baby Boomer Voice Growing
The baby boomer group comprised 23.5 per cent of the Australian population in 2016, growing from 21.7 per cent five years earlier.
In 2020, the youngest baby boomer turns 56 years old and the oldest turns 74 years old.
3. Under-Supplied Prime Suburbs
The portion of three-bedroom and above dwellings due for completion by 2022 is increasing to 71 per cent in medium density, and to 18 per cent for high-density dwellings.
The next trend to watch is the total number of dwellings being completed with 47 per cent less medium-density dwellings due between 2020 and 22, compared to 2017 and 2019, and 30 per cent less being built as high-density dwellings.
4. Collaborate, Community, Belonging
More emphasis on creating agile collaborative zones within the amenities to ensure they carry significance to the residents and can be adapted for alternate uses at other times of the day.
5. Clever Spaces
Source: Crown Residences at One Barangaroo
Drawing inspiration from the most exclusive hotels and residences from around the world will continue to nurture the redesign of luxury apartments and allow residents to be more agile and minimise ineffective space.
6. Rise in Lateral Living
Source: Liverpool/ Lateral Estate.
Buyers are prepared to pay a premium for a lateral apartment, designed to span the entire floorplate offering the closest replica of a freestanding house in the sky, although with absolute privacy.
It can enable the most resilient security, with direct lift access, from the secured basement carpark, to the single-leveled residence.
7. More Branded Residences
With rapid expansion of over 400 branded residences globally, a growing number of developers and hotel groups are looking to capitalise on this opportunity in Australia.
Source: Branded Residence Report 2019/ Knight Frank.
A branded residence is traditionally a hotel-led development with integrated or linked residences. For instance, Four Seasons, Aman, Ritz-Carlton, Mandarin Oriental, One&Only Resorts, Rosewood and Six Senses are among the most active in the segment, others have aligned with luxury brands as diverse as Versace, Porsche and Armani.
They naturally benefit from the quality hotel brand, smooth management and luxury services.
8. A Small World
Source: 'Qantas flew non-stop from London to Sydney in less than 20 hours'/ Qantas.
Qantas tested its new 19-hour nonstop flight from London to Sydney in late 2019. This may be operational by 2022.
Improved connectivity has potential to reshape the second home market. This could result in an increased competition with offshore buyers, and encourage rebalancing property portfolios with Australians likely to buy more second homes abroad.
9. Reducing space and footprint
More buyers and developers are becoming increasingly aware of the carbon footprint they leave behind for future generations.
This was revealed in the recent research conducted by Stockland Research. It was predicted that Australians have a strong desire for more social connectivity and sustainable home features becoming standard.
Read more: 'How will Australians live over the next decade, Stockland Research'
They are committing to better sustainability practices and design for apartment living.