When it comes to buying an apartment in Australia, one of the first decisions you will face is whether to choose a boutique smaller scale development or a high rise tower. Each option has its advantages and the right choice depends on your budget, lifestyle and investment goals.
This blog will compare boutique and high-rise apartments, answering the most common questions from buyers to help you choose the option that’s right for your lifestyle or investment goals.
What’s the Difference Between a Boutique and a High-Rise Apartment?
A boutique apartment is typically part of a small complex which is often fewer than 20-40 units, they have more of an imitate feel and limited shared facilities.
A high-rise apartment is part of a large building, usually more than 10 storeys high and can sometimes have shared facilities such as pools, gyms and concierge services.
Which Has Lower Strata Fees: Boutique or High-Rise Apartments?
In most cases, boutique apartments have lower strata fees. With fewer facilities to maintain, such as basic common areas and gardens, the ongoing costs are generally much lower than in high-rise buildings.
High-rise apartments tend to have higher strata levies to maintain lifts, gyms, pools, rooftop terraces and sometimes full-time building managers.
If keeping your annual property expenses down is your priority, boutique apartments will generally have the edge here.
Which Sells Better: Boutique or High-Rise Apartments?
Resale demand heavily depends upon location, quality and market trends, but boutique apartments often have stronger buyer competition due to their scarcity. Smaller developments have led to fewer apartments hitting the market at once and many buyers are drawn to the privacy and lower-density lifestyle.
On the other hand, high-rise buildings have multiple similar apartments for sale at the same time, which can put downward pressure on prices and lengthen selling time. However, well-located high-rise apartments with great views and premium finishes can still command strong resale prices, particularly in inner-city areas.
Does Location Matter More for Boutique or High-Rise Apartments?
Location is critical for both, but the way it plays out can be quite different.
- Boutique: often in established residential areas with a community feel and proximity to local cafes, shops and transport. They appeal to owner-occupiers who value lifestyle and neighbourhood charm.
- High-rise: predominantly located in CBDs and high-density precincts close to major employment hubs, entertainment and transport. They cater to individuals seeking a low-maintenance lifestyle and convenient access to the city.
If you’re buying for lifestyle, think about where you’ll spend your time. If you’re buying for investment, consider where your ideal tenant demographic wants to live.
Which Has Better Build Quality?
Although there are exceptions in both categories, boutique apartments often have an edge in build quality. Smaller developments are sometimes constructed with more attention to detail and without the same level of cost-cutting that we sometimes see in mass-produced high-rise projects.
High-rise towers can vary greatly; some offer premium builds with excellent craftsmanship, whilst others have been plagued by defects or cladding issues.
It’s important to:
- Review the building history and any defect reports
- Check the developer’s track record
- Speak with the strata committee or manager before buying
At Moove, our Buyers Agents partner with you to help you steer clear of these costly mistakes.
Who Typically Buys Boutique vs High-Rise Apartments?
Boutique apartments tend to attract:
- Downsizers looking for privacy and low maintenance
- Professionals and families who value a quieter environment
- Long-term owner-occupiers
High-rise apartments often appeal to:
- Young professionals wanting a central, amenity-rich lifestyle
- Investors targeting the rental demand of CBD workers and their students
- FIFO workers and people who travel frequently and value security
Understanding the demographic appeal is crucial, especially when buying as an investment; your tenant pool will vary depending on the property type and location.
Which is better for Capital Growth: Boutique or High-Rise Apartments?
Historically, boutique apartments in well-located, low-density suburbs have shown more consistent capital growth because of their scarcity and stronger appeal to owner-occupiers.
High-rise apartments can see strong gains in boom markets, especially in premium stock with views; however, they can also experience slower growth in oversupplied areas or during downturns.
How Do I Chose Between a Boutique and High-Rise Apartment?
Ask yourself:
- What is my budget? If you want lower ongoing costs, a boutique building may suit better.
- Am I buying for lifestyle or investment? The type of home you choose will depend on what you’re looking for in terms of long-term goals and the kind of buyer or tenant you may want to appeal to.
Are Boutique Apartments Always Better?
Definitely not, the right choice depends on your goals. Some high-rise apartments offer unmatched convenience, views and facilities, whilst certain boutique apartments may lack parking or have higher-than-expected maintenance costs for a small block.
As with any property purchase, success hinges on acquiring the right apartment in the right location with strong fundamentals.
Key Takeaway: Consult a Buyers Agent to Buy Property Better
Choosing between a boutique and a high-rise apartment isn’t just about the building size, it’s about strata costs, resale potential, location, build quality and the lifestyle or investment outcomes you’re aiming for.
Moove can help you compare options, assess market data and secure the apartment that best suits your needs, whether that’s a boutique block in a tranquil neighbourhood or a high-rise with sweeping city views.
Ready to get started? Speak to Moove today and buy property better.
