The 2025 Australian Apartment Advocacy (AAA) Survey, which spoke to 1100 apartment owners nationally has produced compelling evidence that well-located apartments provide a much-needed fillip to the local economy.
AAA director Samantha Reece says the research is proof, if needed, that local governments could and should take the substantial economic benefits of apartments into account when considering development applications.
“This research – the first national litmus test – proves unequivocally there is an apartment economy,” Reece says.
“The apartment residents we surveyed reported a weekly median spend of $120 on supermarkets within walking distance, a median monthly spend of $100 on cafes and restaurants within walking distance and a median monthly spend of $150 on gym and health and beauty services within walking distance.
“That’s a median service spend of more than $700 a month for each apartment. We do not believe this goes even close to capturing the total potential spending power of each resident.
“Clever local governments considering better targeted, desirable services in and around apartment complexes will reap even greater economic benefits for their local communities and businesses.”
Reece says four in five apartment residents had supermarkets within walking distance, but just over half of those residents shopped at those local supermarkets. Three-quarters of those surveyed had a gym within walking distance of their apartment but only one-in-five used it.
“This tells us where there’s a village precinct, an apartment development within walking distance creates an uplift in spending,” she says.
“But it also reveals the potential for increased spending with better targeted services.
“It begs the question, does the gym space need to be more versatile or appealing to retirees? Do local governments need to more carefully assess the potential demographic to ensure there’s greater service uptake?
“But this also indicates to developers that a more curated approach to precinct planning is needed and that choice both on price point and offering is essential to ensure greater success for their commercial tenants.”
In final comment Ms Reece stated that a precinct of 2000 residents could inject up to $17 million in the local economy yearly and if this was to increase to $800/month (from $700/month) this would reflect a $19 million injection per annum.
