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What they lack in size, one-bedroom units can make up for in style and substance. An affordable option for first-time purchasers, investors and their tenants, a smaller apartment can tick several boxes and be a logical initial step onto the property ladder.

As many house hunters in metropolitan markets struggle with affordability; inner city office spaces welcome back workers. International borders reopen to migrants and students, there will be inevitably be an increased demand for conveniently located quality properties – whatever the size.

Whether a buyer is considering purchasing a one-bedroom apartment as a home or investment, there are five solid reasons why good things really do come in small packages.

1.Demand is on the rise

As Australia opens up post-pandemic it’s only a matter of time before international students and temporary workers return to our cities, therefore increasing the rental demand for affordable apartments in handy locations. Even former share house tenants who once lived with several flatmates in larger homes are now realising the benefits of living on their own.

2.Strata and council rates are less

Owning a property comes with a host of ongoing costs from maintenance to strata fees and council rates. The bonus of owning an apartment is that mowing the lawns and fixing fences isn’t on the “to-do list”, but you will still need to pay your share of strata fees and council rates. The good news is however, a smaller property attracts much lower outgoings as these costs are calculated on size and value.

3.The price point is lower

Some one-bedroom units can actually cost millions of dollars, but usually they are the most affordable option in a new apartment block or pre-existing building. When budgets are tight, a smaller apartment might be the smartest option for a first-home buyer or investor who is keen to give their property portfolio a kick-start. In a rising market, buyers who decide to hold out in the hope of affording a larger home could find that prices escalate beyond their reach.

4.Rental return is often better

Although one-bedroom properties usually cost less to get into compared with bigger apartments, some can actually offer a better rental yield than two or three-bedroom properties. While smaller units may not always experience the same capital growth as properties with more bedrooms, a savvy purchase that includes added extras such as a great view, balcony or secure car space can actually minimise this effect.

5.Location, location, location

By buying something smaller purchasers have the opportunity to get into a neighbourhood that they might otherwise have been priced out of. Great lifestyle amenities such as a beach, parks or popular dining and shopping precincts can be the positive trade-off for not having extra bedrooms. These walkable perks will always be desired by tenants and even future buyers when it comes time to sell.


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