Australians homes and apartments are getting smaller, new research shows

Australian properties are the smallest in two decades as apartment-living slashes the size of the average new dwelling, recent research shows. Despite this, Aussie homes still rank as some of the largest globally.

The average size of a new home is 189.8 square metres, 2.7 percent less than the 2015-2016 financial year, the CommSec Home Size Report has shown. Tasmania is home to the smallest houses, with 195.5 square metres on average.

Victorians are building and living in Australia’s largest houses at 242.8 square metres. In South Australia and Western Australia, the average size of houses has lifted.

South Australia built the largest homes on record going back 30 years. McMansions are still being built, but there are fewer of them. The average house is now much larger compared to 20 years ago at 233.3 square metres, the largest in four years.

The shift towards apartments has considerably changed the figures. This is specifically seen in Melbourne, Sydney and Brisbane.

All these cities have recently been through record-building booms in the past few years and are now seeing fresh unit supply. Apartments have become smaller as well.

Smaller spaces for singles and couples

The average apartment from 2004 to 2009 was 140 square metres. This is comparable to 130 square metres this year, based on the CommSec research.

The smallest apartments at 95.8 square metres are located in Canberra. The largest are found in the Northern Territory at 154.5 square metres. New South Wales, Western Australia, Queensland and Tasmania have averages under 130 square metres.

According to CommSec chief economist Craig James, the increasing popularity of semi-detached homes also affects the decline in the average dwelling size. “Generation Y, millennial couples and small families want to live closer to work, cafes, restaurants, shopping and airports and are giving up living space for better proximity to these desirable amenities,” he said.

Urban Taskforce chief executive Chris Johnson said the modern developments are also influenced by accessibility and affordability. He explained that the people who live in apartments are more likely to be single people or couples who prefer smaller spaces.

Johnson added that location is another factor since a number of apartment dwellers want to be close to the action. This, however, is expensive, hence the move to smaller spaces. And although apartments are becoming smaller, these spaces have also become more liveable with bigger windows and open-plan layouts.