With the demand for duplex apartments surging, duplex sales are starting to look more attractive, but it can still be a tricky process to get your hands on a single unit.
The latest evidence comes from a report from Australian Property Council (APC) into the changing face of apartment renting.APC’s report, based on a survey of more than 600 households across the country, found that nearly half (46 per cent) of the owners said they had not yet made a decision about whether to rent out their duplex.
The other 34 per cent had not decided whether to sell or lease their unit.
Many of these owners had previously owned the property and had never had any realisation that their dupile had sold.
In some cases, the owners of the property had no idea they had sold the property until they contacted their new buyer.
APC’s CEO, Sarah Wilson, said the report indicated there were many owners who were still unsure whether to give up their duples.APCC said the majority of owners surveyed had purchased their dupes for between $800,000 and $1.5 million and were not sure whether to buy them for $900,000 or $1m.
“Many owners are struggling to make sense of the changes to the rental market and have not made the decision to sell their duple,” Ms Wilson said.
“Some may simply not know where to start.”
The average sale price of a duplex was $1,811, according to the APC report, while the average asking price was $2,087.
The majority of the duplex owners surveyed (69 per cent), had owned their dupiles for between 15 and 30 years and were unsure about whether they would continue to rent them out, while a further 21 per cent said they were planning to sell them.
One owner said his or her goal was to sell because the apartment market had changed so much.
“I was lucky enough to be able to buy my duplex and I am looking forward to renting it out to other people,” he said.
Another owner said he or she would only rent out the duple to a family member, partner or friend.
“My current rental is only half-occupied and I would love to take advantage of this to sell my duple and make some extra cash to buy a house,” he or her said.
Many duplex owner groups have criticised the new rules, with some calling for the government to reinstate a minimum rent of $500 per week for duple owners.
“We don’t want to see landlords and apartment owners continue to exploit the rental system, we want them to move on,” APC CEO Sarah Wilson said, adding she hoped this would help encourage owners to make the tough decision to move out of their duply homes.
“The reality is that most people are struggling with housing costs and we need to ensure that the system is fair and affordable for all.”
The report comes as some rental properties have sold at record prices, with a number of duplex properties now sitting empty or in the process of being sold.APCA is urging all landlords to make a commitment to rent their duplet as a rental unit.
It recommends that landlords be prepared to spend at least $100,000 to rent the unit for a maximum of 30 days and to spend $300,000 over the next five years to rent a duple.