Until now, penthouses have been the domain of CBDs and city fringe areas, spanning top floors of high-rise towers with sleek designs and smart-tech features. But as Australia’s population ages and downsiser demand accelerates, the suburban penthouse is emerging as a new dwelling choice for Baby Boomers.
Suburban penthouses typically offer house-sized proportions, premium inclusions and customisation options. And with increasing developer focus on the downsiser market, this unique product is set to gain traction.
Behind the suburban penthouse buyer
There is a groundswell of demand for suburban penthouses from downsisers seeking a new lifestyle after decades in large family homes. Community is critical to these buyers. Unlike previous generations that saw retirees relocate to coastal or regional areas, they want to remain in the same neighbourhood. Friends, family, doctors and established networks are close by, and they don’t want to start again.
It is also highly emotional selling the family home, and choosing a new property can be a difficult process. Downsisers are very selective given that for many, it is their ‘final home’.
While a standard apartment can feel like a compromise, the suburban penthouse offers an elevated lifestyle. It unlocks luxury low-maintenance living without compromising the space they’re accustomed to.
Less tech, more space – with a personal touch
While CBD penthouses are typically the single ‘crown jewel’ in a high-rise tower, suburban penthouses can be a collection of unique residences. This provides a sense of community, and neighbourly interaction is very important to downsizers.
Suburban penthouse buyers also seek to customise their penthouse apartment as they would a new home build.
They want flexibility to change room sizes, amalgamate rooms, customise joinery, and increase storage. The decision to downsize is deeply personal, and they want a home that feels comfortable, luxurious, and unique.
And unlike typical CBD penthouse purchasers, this demographic isn’t interested in the latest smart home tech or fitness amenities, like saunas and gyms. They’ve hosted decades worth of dinners and holiday gatherings with children, grandchildren and other extended family, and they want homes built for family entertaining.
Generous kitchens with butler’s pantries, large decks and balconies, and expansive spare rooms for guests are all high on the downsiser wish list. They also want all the appliances they had in their houses that helped them entertain – double ovens, wine fridges, barbecue bench tops and built-in fireplaces.
A new frontier – the future of the suburban penthouse
The suburban penthouse represents a design trend and a commercial opportunity, with well-designed penthouse stock selling quickly.
It not only commands a higher margin than the standard apartment but differentiates a project in competitive suburban markets. The Hills Shire is a testimony to this with rare opportunities for penthouses, despite high volumes of new development.
Puja Khanna, Associate Director – Design, Sales & Marketing at Ellipse Property
And on the flipside, downsisers who choose the suburban penthouse get to stay local, live large, and embrace their downsiser era without having to compromise on their space, lifestyle or social connections.
As the market continues to evolve, demand for this product shows no sign of slowing, and whether more developers embrace it remains to be seen. However, those who do will capture today’s most influential buyer demographic, reshape what it means to downsize, and set the benchmark for a new frontier in apartment living.
