How to find a high-growth investment apartment in 2025

What are the key features of a high-growth investment apartment that should never be overlooked?

The most obvious attribute is a block that’s a quality build and in an area where there are historically low vacancy rates, says Envisage Property director and Solvere’s head property coach John Pidgeon.

“Strata reports can indicate any red flags about the first, and suburb-data clues about the second,” he says. “And if the property is off the plan, then you should be looking at the developer and builder and checking out their previous projects and seeing what they look like five to 10 years on.

“You should also be examining plans for additional supply at that location because there might be low vacancy rates now, but if supply increases in the future, will that apartment still attract tenants? So, you should be looking at something more niche, like in a small complex, or with three bedrooms or a large two-bedroom, two-bathroom unit on a higher level.”

That kind of apartment obviously comes at a higher price, but then you’re more likely to receive a better return, long term, says Pidgeon, than something cheap and nasty that everyone can afford.

Zoran Solano, managing director of Hot Property Buyers Agency, who works primarily with prestige purchasers, agrees that larger apartments shouldn’t be off-putting as a good investment proposition.

The downsizer phenomenon means that older people are now in the market for large, luxury apartments, and many of them want to rent to try out apartment living before they buy.

“In addition, as an investor, it’s the owner-occupiers who determine how capital growth happens in this country,” says Solano. “So, when you sell an investment property, you don’t want to just sell to investors; you want to sell to someone who has an emotional connection to your property because they want to live there. That’s a big shift in the market.

“Also, you need to stay in touch with the demographic changes happening, for instance, where is the largest group of migrants to Australia coming from, and what do they like in an apartment? And these days, you want a lift in apartment buildings; gone are the days of choosing old walk-up blocks. A lot of tenants now are picky about apartment amenities.”

An important trait of a potentially high-growth apartment is that it’s not in an area with new planning controls that could see the neighbourhood choked by new developments, points out buyers’ agent Chris Curtis, principal of Curtis Associates.

He’s also not keen on units that have been repurposed from old buildings, such as hotels, which may have required compromises that could prove potentially costly to owners.

“You also want an apartment close to good infrastructure like public transport, especially new metros, and amenities such as shops and parks,” he says.

“I also prefer 10 years-plus with character, rather than brand new off-the-plan units, although make sure they don’t have problems like asbestos, special levies, non-compliant balustrades, windows that need to be replaced or fire orders.

“Don’t rely on strata reports alone to judge the state of a building, either. Talk to current residents; they may tell you things that have been kept out of the reports. And don’t choose apartments in lift wells or by garbage chutes, which can be noisy at night.”