Australian Property Developers Turn a Pet-Friendly Attitude Into Profitability
Higher density living is becoming the norm in Australian capital cities, as low housing affordability and the government’s slow land release policies force families into apartments.
But when a household downsizes, what happens to the beloved family pet?
While there have been mixed attitudes from developers in Australia willing to create living environments that integrate pets, investors can make potentially 5% extra on the sale of their property if it is pet-friendly.
Love that pooch
Australia has one of the highest rates of pet ownership in the world, with 63% of our 7.5 million homes having at least one pet in residence, according to the Petcare Information and Advisory Service.
There are 38 million pets in Australian homes - almost twice as many domestic pets as people - with the most prolific being fish and birds, followed by dogs and cats.
But there is not the tradition that exists in many European cities of welcoming pets into high-density living. In fact, many Australian apartments blocks begin with a blanket ban on pets, and only allow them after formal application to the owner’s corporation, with often a two-thirds majority required on vote.
The Australian Companion Animal Council reports that new property developments often ban pets entirely, in an attempt to make the environment more attractive for residents. However, it says that this attitude limits the amount of accommodation available for young families and the elderly, who are traditionally the biggest pet owners.
And for renters, keeping pets on the property is even more problematic. ACAC’s report The Power of Pets (PDF) cites a survey that shows that, while two-thirds of Australian households own pets, pet ownership drops to just 17% among people renting property.
At the same time, more than four-fifths of people who don’t currently own a pet would like to own one in the future, which indicates that it is living in a rented apartment and strict owners’ corporation rules which are preventing these people from getting the animal companion they desire.
Man’s best friend goes high-rise
Research shows 91% of pet owners feel “very close” to their family pet, and ACAC argues that people are more willing to pay more for a pet-friendly property than to get rid of this “member of the family”, so the potential benefits are there for developers to create such environments.
President of the Institute of Strata Management, David Morris, told realestate.com.au that it worthwhile for owners and potential buyers to check the policy of a building’s owner’s corporation in regards to pets. He said taking the next-door neighbour’s word on it can lead to problems, and ordering a search conducted on the body corporate books can show any conditions that may apply. Being able to advertise an investment property for rent or resale in a pet-friendly building can boost the potential market and the potential financial gains achieved by broadening the market.
In the high-density residential areas of south-east Queensland, property marketers have identified pet-friendly buildings as attracting higher prices and selling more quickly than those which discourage pets.
PRDNationwide cited figures showing Sunland Group’s Malibu building at Main Beach had a no-pets policy and recorded average capital growth of 15% between 2001 and 2005 compared with Girvan’s Silverpoint at Broadbeach, which allowed pets and recorded growth of 20% in the same period.
Buying into a feline friendly block
Features of a pet-friendly apartment include a big balcony, extensive tiling or floorboards throughout; soundproofing; floor-to-ceiling windows so pets can look out; and being close to parks and walking trails.
At Jacksons Landing, the major property development by Lend Lease at Pyrmont Point in Sydney, implementing a pet-friendly policy has led to one quarter of all apartments having dogs, and other pets as varied as mice and bats. The luxury harbourside apartments feature open space, and the residents’ community has even set up a weekly dog club for owners and their puppies to meet up socially.
The 813-hectare residential community of Pelican Waters, on Queensland’s Sunshine Coast, features 40% open space and parkland, and many apartments are advertised as being within pet-friendly precincts.
The Pradella Group is developing a precinct opposite the Roma Street Parkland in Brisbane, and has implemented a pet-friendly policy in each of its apartment blocks. The five apartment towers feature deep balconies and proximity to open space to attract pet owners.
For both owner-occupiers and investors alike, there are benefits to be gained from buying in an apartment block that offers these added features, with a view to attracting more lucrative offers when it comes time to sell.
