Quick tips | 5 minutes

Apartments vs House & Land

Mosaic Property
12/08/21

It is commonly assumed that owning land will offer the best opportunity for future value uplift however in many ways this is an outdated view, given it overlooks key factors that make apartments the stronger investment option. Here is why.

High Values Locations

Surrounding amenity, services and infrastructure are vital to drive residential demand and future growth prospects, and these are always located in greater volume closer to the city where medium to higher density apartment development exists.

Government Investment

Providing infrastructure to outer suburban areas where detached housing typically exists is often cost prohibitive. Values generated from improvements in infrastructure, such as a new transport network, are capitalised on by surrounding property values.

High Demand & Low Supply

There is a misconception that land is always in under-supply. Ample land supply exists in every major capital city and regional market in Australia which will be further prolonged given lot sizes are becoming even smaller.

Preferred Living Options

The population is increasingly drawn to the lifestyle afforded by higher density environments including restaurants, shopping, transport and schools. The demand required to drive investment returns is not present from the very low population base in outer region greenfield sites, which can take years to build.

Higher Rental Yields

Apartments typically provide far greater amenity, less maintenance and better security, and tenants are more likely to pay a premium for a high-quality new apartment.

Tax Advantages

If the property is purely an investment, tax deductions such as depreciation on age, wear and tear are higher on new property, and generally higher on an apartment due to depreciation on the entire complex and equipment such as lifts.

Preferred Asset Class

Australian investors strongly favour apartments, with CoreLogic reporting that investors favour apartments over detached housing by around three times. This percentage has grown considerably in the last decade.

Why Choose Mosaic?

Enduring Value

Mosaic delivers every stage of the project, from research and acquisition, marketing and sales, to construction, property management and maintenance. They are with you for the life of the building.

Industry Recognition

Mosaic was the most awarded developer in Queensland in 2018 with its apartment projects recognised by multiple highly regarded industry bodies for design, quality and liveability.

Track Record

Mosaic has successfully delivered more than 40 projects in South East Queensland in the past six years alone and has never once failed to deliver a project.

Quality

Mosaic designs with the Owner-Occupier in mind with bigger, functionally designed apartments, ample storage, and with high quality fixtures and fittings that people want to live in.