A RAPID rise in the number of people living solo is shaking up the Perth real estate market. The speedy growth is driving up the number of one-bedroom apartments and smaller housing lots, experts say.

New Australian Bureau of Statistics forecasts show there will be a dramatic rise in the number of sole-occupant households in the next 25 years – surging 65 per cent to hit 3.4 million l by 2040. WA is already ahead of the trend, with the highest rate of solo first-homebuyers in the country.

According to data from Mortgage Choice, last year more than one in three WA first-homebuyers purchased alone – a 37 per cent increase from the year before.

Solo home buyers are driving demand for one-bedroom apartments

Mark Hay Realty Group director, Mark Hay, said he was now selling to as many solo buyers as he was couples.

“Young people might be putting off marriage and children for later, but that doesn’t mean they necessarily want to put off property purchasing,” Mr Hay said.

“Today’s youth are becoming more investment focused and are purchasing not only to have a place of their own, but because they want to be engaged in the market.”

Mr Hay said the jump in single occupants was also being caused by a rise in divorcees and widowers buying property.

Apartment developer Paul Blackburne said he had also seen an increase in the number of solo buyers and was adjusting developments to meet the demand. He said in Subiaco’s seven-level Encore project, about a third of buyers had been sole occupants.

“In some of our city projects we are now doing up to 50 per cent single-bedroom apartments to accommodate the demand,” Mr Blackburne said.

“We’re also thinking about ways to create a community feel within the complexes. We’re now often putting $1-2 million into common areas and creating websites and blogs (buyers) can communicate on.

“While more people are living alone, we still think they want a sense of community or the opportunity to get to know their neighbours living in an apartment.”

Willing Property Group director Tim Willing believed the depiction of “modern apartment living” in film and TV was influencing more people to live alone. He said the rise of solo-occupancy would lead the percentage of apartments in the new-build market to grow from its current 15 per cent to the 30-50 per cent found in Sydney and Melbourne.

Property Council executive director Joe Lenzo said while WA typically had a lower rate of one-bedroom apartments than interstate, this would shift in coming years.

“There has been some conservatism in WA with one-bedroom apartments, but I think we’re slowly moving away from that,” Mr Lenzo said.

“The one-bedrooms being created aren’t cramped bedsits of the past, but high-quality designs.”

Builder Dale Alcock said WA was no longer dominated by a 4×2 market.

He said that in the past 12 months, 53 per cent of buyers for his most popular three-bedroom, two-bathroom design had been single purchasers.

“There are young people who are more career-focused and perhaps aren’t ready to commit to buy with a partner, but still want to get in the market early,” Mr Alcock said.

“The days of just the 4×2 are gone.”

Land developer Nigel Satterley said cottage lots at his estates were becoming increasingly popular.