One of the biggest considerations when buying an apartment is deciding if you’ll buy upstairs or on the ground floor. It’s not just about getting views but whether there’s financial benefit to being higher up or lower down.
We always recommend researching the target suburb to understand what’s influencing its home buyers, as this will give you a very good indication of the type of apartment that will provide the best returns. With that said, when looking at the performance of apartments, generally those positioned on higher/top levels tend to experience greater capital growth, being not only more attractive to investors and owners, but also to tenants.
Top or Bottom? Well, there are pros and cons for upstairs and downstairs.
Ground Floor Apartment Pros
Courtyards
The main advantage of ground level apartments is they sometimes courtyard areas that are much larger than balconies, which can almost act as another room if positioned well.
Absence of Stairs
For areas with an ageing demographic, easily accessed downstairs apartments can be desirable.
No Neighbours Below
No need to worry about bothering underlying neighbours, especially if you have children.
Ground Floor Apartment Cons
Privacy/Security Concerns
This is particularly so in inner-city areas, where a high proportion of the population are professional single female tenants and security is a top concern, and is reflected in rent prices.
Noise and Disturbance
Ground floor can be very noisy in regards to foot and vehicle traffic and being close to a side driveway means vehicle lights can often shine into living rooms.
Upstairs Neighbours
The noise produced by apartments above can be a huge concern for buyers and tenants.
Upstairs Apartment Pros
Improved Views
Views attract a premium when selling, especially in cities and near water.
More Security and Privacy
Upstairs apartments are positioned further away from the street and generally have windows that are not accessible.
More Natural Light
This is important in the densely developed areas, where there is often more overshadowing from tall buildings.
Upstairs Apartment Cons
Less Appeal for Retirees (if Without Lift Access)
For areas where there are larger populations of older people, stairs are a major concern so investing in an upstairs apartment without lift access can be unappealing to buyers/tenants.
Can be Hot
Depending on the apartment’s aspect, upstairs and top-floor apartments can sometimes produce much heat in summer.
What do Realtors Say? It really depends on the location and the type of buyers in the market. The higher up you are, the higher the sale price. Developers call it the “floor premium”.
In terms of price, we notice the top and ground floors command the biggest prices then the prices taper down to the middle floors.
Sometimes, it is the downsizing empty-nesters wanting the ground floor homes. However, we do come across families with children wanting the greater space of ground floor apartments.
Whether you are buying, selling, or just plain interested in real estate, connect with Penang Property Angel today for professional assistance.
