by Jemma Pearson There’s a property trend that has buyers downsizing, and it’s got nothing to do with retirement living.

There is a section of the property buying market that has always been up for a downsize – baby boomers and retirees opting for a simpler, low-maintenance lifestyle are steadily giving up the suburban block or acreage to live in lock-up-and-leave units.

But a new buying trend is emerging, and while it has everything to do with decreasing home sizes, it is not being driven by downsizing retirees. People are demanding small homes that do not compromise on quality or lifestyle, and the reasons all come down to cash.

According to recent research conducted by the Real Estate Institute of Queensland, townhouses are becoming an increasingly popular choice for the state’s owner-occupiers, investors and renters. Attractive to those who want something larger than a unit but not as cumbersome as a house, rental townhouses in Brisbane suburbs in particular are proving a hit with tenants. “While two-bedroom units and three- and four-bedroom houses remain the backbone of Queensland’s rental stock, the continued development of townhouses will likely underpin growth in this sector of the rental and sales markets in the years ahead,” the report, which was released in December last year, stated.

Just four years ago, our lowest home and land packages were about $150,000 higher than they are today. Troy Wainwright

Another trend that is being witnessed around the nation is that of apartment upsizing. The Sydney Morning Herald newspaper last month reported that a growing number of apartment dwellers are upsizing not to houses, but to bigger apartments. “It’s not unusual now to have people who have never lived in a house,” the NSW president of Strata Community Australia, David Ferguson told the newspaper. “We’re becoming more like some of the major cities in Europe, where people have been enjoying the benefits of strata living for a long, long time.”

Not only is a three-bedroom apartment a good alternative to a house, but for some buyers, it is much more preferable.

Here on the Sunshine Coast, apartments and units will always appeal to a lot of buyers, but there is another vocal segment wanting homes that are just as compact as apartments but on their own plot of dirt. And builders and developers are listening.

Local builder Brad Thompson is busy constructing homes that are just 50 and 60 square metres in Fitzgibbon Chase, a master-planned community in Brisbane’s northern suburbs. He says there is a demand for these small detached houses because they don’t attract the fees and charges associated with strata living. “For first-home owners, units used to be the go, but then they are forking out [thousands of dollars a year on body corporate fees].

It makes sense that residents used to city living are opting for compact home designs, but is the Sunshine Coast ready for Brad’s 50-square metre abodes? “You only have to look at Maroochydore’s Sunshine Cove to see that they are,” Brad says. He also thinks smaller homes will crop up in Caloundra’s new developments and anywhere on the Coast where a developer can buy up a handful of established homes and rezone to create pockets of compact living spaces.

Brad believes the trend is driven by affordability. “People are getting realistic about size and realistic about what they can and can’t have,” he says, adding that not so long ago younger buyers wanted four bedrooms and a media room, but were not practical about whether or not they could afford it. “Now people are being realistic about what they can afford and are happy to have two or three bedrooms and no media room.”

But the tide is turning, and as a result the builder believes more and more new homes on the Coast will be small. “It is the way the Coast is going,” he says. “ In the next 10 to 15 years we will be seeing more of these types of homes here.”

Stockland is one developer that is meeting the demand, supplying plenty of affordable housing to Sunshine Coast buyers at the southern end of the Coast. The houses at Bells Reach and Brightwater feature innovative designs on smaller lots, which enable the developer to offer low starting prices. But new-home buyers aren’t the only ones who are buying from Stockland – growing families and empty nesters are also keen purchasers.

People are getting realistic about size and realistic about what they can and can’t have. Brad Thompson

“We have teamed up with key builder partners to make new homes more accessible without affecting quality or lifestyle,” says Stockland’s regional manager for the Sunshine Coast, Troy Wainwright. “Just four years ago, our lowest advertised home and land packages were about $150,000 higher than they are today.

“In our January 2008 catalogue, the most affordable package at our now completed Bellvista community at Caloundra was a three-bedroom home on 650 square metres for $439,500. The 2012 catalogue has home and land packages at our new Bells Reach community right next door starting at only $289,700 for a three-bedroom home on 250 square metres.”

Troy says the emergence of smaller homes has led to the difference in price. These homes include a wider choice of three-bedroom houses, which has been one of the biggest changes in design over the past four years. “Not everyone, especially first-home buyers, needs four bedrooms, a study, or a media room,” he says. “People trying to get a start in the housing market would rather save thousands of dollars in building costs than have an extra room or two they don’t need.”

Echoing Brad’s sentiments, Troy adds, “[Buyers] are also opting for free-standing homes on smaller blocks as an alternative to units or townhouses that have body corporate costs.”

It’s this desire to avoid body corporate fees, among many other reasons, that has buyers embracing an innovative development in Maroochydore. In an established suburb filled with three- and four-bedroom brick-and-tile homes that sit beside large renovated residences, Sunshine Cove stands out, and signals the future of housing on the Coast.

Sunshine Cove Realty’s Penny Service says the development is the result of lots of planning, fulfilling a growing demand from local buyers. “We spoke to a lot of people and did our research and found people still want their own block of land, with no body corporate fees, where they can still have pets,” says Penny. “[They want the] freedom of a residential home with the benefits of apartment living.”

In the first stage of the development three land sizes were offered for sale. “We had terrace plots that were about 200 to 225 square metres, laneways, which are about 250 to 305 and villas, which are about 350 to 440 square metres. We can build to your needs and you can still have a large house.”

While small, affordable homes will always appeal to first-home buyers, Penny says many different buyers are attracted to Sunshine Cove. “We are seeing a really healthy segment of the market,” she says. “Everyone has different needs”, and the flexibility and range of homes at Sunshine Cove meets those needs.

And far from missing out because of smaller lots, the needs of the residents at Sunshine Cove have been well catered for. “When you do your small lots it is important to have location to support the home,” Penny says, pointing to the infrastructure and facilities, including schools and shopping, that are close by. The motorway, for those who need to pop down to Brisbane, is also very handy. Infrastructure is big on Stockland’s list, too. “All our communities have numerous convenient parks, playgrounds, walking paths and bike tracks so buyers are realising that big backyards are not as important,” says Troy.

We spoke to a lot of people and found they still want their own block of land, with no body corporate fees, where they can still have pets. They want the freedom of a residential home with the benefits of apartment living. Penny Service

If you’re walking around your oversized abode and lamenting the loss of big homes, don’t. While more compact homes will pop up around the Coast, Penny reminds buyers that they won’t be the only type of housing available. “The future will be that the market will be provided with a broad range of product and people will be more selective – they won’t have to compromise,” she says. What is clear is that we won’t buy a home and stick with it for 30 years. People will move house as their circumstances and lives change. “As a result we might see people move more as they go through life,” Penny says.

That will at least keep removalists and real estate agents happy.