DIVERSITY is the key to future development in Perth's premium coastal suburbs and infill areas close to the city, according to Alcock Brown Neaves Group general manager Andrew Auret.
Mr Auret said that open-minded buyers - no longer stuck on the idea of a traditional quarter acre block - were driving demand for smaller, medium-density housing.
“In many cases, a smaller medium-density housing option is a better fit with lifestyle, stage of life and family structure,” he said.
“Medium density housing, and the diversity it creates, is not about cheap product or cheap buyers. It's about diverse housing forms that fit the aesthetics, quality and amenity of the surrounds.
“Diversity in housing in a premium market is about meeting different housing accommodation needs.”
These include the needs of older couples who no longer want a big house, as well as young professionals.
Mr Auret said that homebuilders and renovation specialists were prepared for the complexities of building in infill areas and were aware that good design was required to maximise the use of space on a smaller lot.
“They also understand the challenges that come with infill housing, such as site constraints and approval processes,” Mr Auret said.
“In western suburbs such as Cottesloe, Subiaco, Claremont and Nedlands, development is relatively quiet.
“After a flurry of activity in the last property cycle, from Leighton through to Claremont, there has been very little new product come onto the market.”
Mr Auret said high-quality apartments with a high price point helped maintain an area's prestigious name.
“They also capitalise on the appeal of an area by providing comparatively affordable entry points and the ability to realise equity when downsizing to a smaller home,” he said.