High-Rise Living: Advantages and Disadvantages for Australian Buyers.

Only around 4% of Australians live in high-rise apartments of four storeys or more. That figure has barely shifted despite government policy pushing for higher density since the 1990s. For buyers and renters, the gap between what’s promoted and what actually works day-to-day matters more than any urban planning target.

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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.

4%
Australians living in high-rise apartments (4+ storeys)
thetimes.com.au

60%+
of high-rise dwellers want to move for more space
theconversation.com

more often high-rise residents move vs homeowners
theconversation.com

1990s
when Australian governments began promoting high-rise policy
thetimes.com.au

That 4% tells you something important. Most Australians still choose low-density housing even when apartments are available. High-rise living works well for a specific group — younger renters without children who value location over square metres. But the research shows that over 60% of current high-rise residents eventually want to move somewhere bigger. That turnover matters whether you are buying or renting. A high-rise apartment might suit you for five years but feel cramped by year ten.

Plenty of buyers jump in because of the views, the security, or the shorter commute. They don’t always factor in what happens when their life changes. High-density living in Australian cities comes with trade-offs that aren’t obvious from a sales brochure. Here’s what you actually need to know.

Convenience has a shelf life
Proximity to work, shops, and parks is a real benefit. But over 60% of residents outgrow their apartment and need to move. That costs time and money.

Strata fees are the hidden cost
Ongoing levies cover building insurance, maintenance, and common areas. Special levies for major repairs can run into tens of thousands with little warning.

Safety is not automatic
Balconies, windows, and fire-safety systems vary widely between buildings built in different decades. A newer building is not always a safer one.

Demographics drive turnover
High-rise residents are younger, more mobile, and more likely to rent. Family-friendly apartments are rare and expensive, which pushes people out as their household grows.

Those four points capture the main patterns I see in the data. The one that catches most people off guard is turnover. You buy thinking you’ll stay for a decade, but the typical high-rise resident moves almost twice as often as a detached-home owner. That churn means you need to plan resale from day one.

Strata
The Australian legal structure for shared ownership of common property in apartment buildings. Owners pay strata levies for building insurance, maintenance of shared areas (lobbies, lifts, gardens), and a sinking fund for future repairs. Strata management handles decisions about rules, budgets, and special levies.

When you buy into a high-rise, you are buying into a strata scheme. That affects everything from your monthly costs to whether you can install a clothes dryer. Understanding the local market conditions for apartments only gets you so far — the strata rules shape your daily life.

The full cost picture: what the purchase price doesn’t tell you

Buyers compare the purchase price of an apartment against a house and think they are saving money. But the ongoing costs in a high-rise are structured differently. Strata levies, special levies, and restrictions on short-term rental can shift the total cost picture significantly. The table below shows how the main factors stack up.

→ Scroll right to see all columns

Source: The Conversation analysis
FactorHigh-Rise ApartmentDetached House
Entry price (central location)Lower — trade dwelling size for locationHigher — more land, often further out
Ongoing ownership costsStrata levies + council rates + insuranceCouncil rates + building insurance + maintenance
Special leviesCommon — can reach $10,000+ per ownerRare — major repairs are borrower’s choice
Space per dollarLess — larger apartments aimed at luxury buyersMore — especially for families
Security & building access24/7 — intercom, fob, often conciergeVariable — depends on neighbourhood
Outdoor private spaceBalcony (often small) or noneBackyard or garden
Resale buyer poolNarrower — limited to renters and downsizersBroader — families, investors, upgraders

What the table doesn’t show is how quickly the balance can tip. A building with a leaky facade or a lift replacement can trigger a special levy that wipes out several years of savings from choosing an apartment over a house. I’d always ask for the last five years of strata meeting minutes before signing anything. That tells you which repairs have been kicked down the road.

Strata levies can eat your deposit growth
A typical one-bedroom apartment in a mid-range Sydney or Melbourne high-rise might carry annual strata fees of $4,000–$8,000. Over five years that’s $20,000–$40,000 that doesn’t build equity. Factor that into your holding period before you compare apartment and house prices.

There is also the question of who you can sell to. High-rise residents are more likely to be renters, younger, born overseas, and without children. That is a narrow demographic. If the local job market shifts or rental demand softens, the buyer pool shrinks faster than it would for a house in a family suburb. That is worth weighing against the government incentives available for property buyers in your state.

Where buyers and renters get tripped up

Buying for space you can’t change

The research shows that over 60% of high-rise residents want to move specifically to increase the size of their home. That tells you that most people underestimate how quickly their space needs grow. A one-bedroom apartment might feel generous when you move in alone. Add a partner, a child, or a home-office requirement, and it shrinks fast. Larger apartments in Australian high-rises are rare and priced for the luxury market, so the typical upgrade path is to leave the building entirely. That means you face selling costs, stamp duty on the next place, and the disruption of moving — often within five years of purchase.

Skimming the strata report

Strata documents are dense. Buyers often glance at the levy amount and miss the sinking fund forecast, the building-defects history, and the minutes of recent meetings. A building with an underfunded sinking fund might look cheap until a special levy of $15,000 per lot lands in your letterbox. The mechanical side of this: you request the strata records through your conveyancer, review the last three years of AGM minutes, check the capital works fund balance, and note any outstanding legal disputes. If the owners’ corporation has flagged major structural work without a funding plan, that is a red flag you should not ignore. For specific legal questions about strata obligations, you can run them past a property law specialist before you commit.

Assuming all high-rises are safe by default

Building standards vary enormously across different decades. Cladding risks, fire-sprinkler coverage, balcony safety barriers, and window-locking mechanisms are not uniform. The tragic death of a child who fell from the 27th floor of a high-rise in Cebu City in 2024 is a reminder that balcony and window safety depends on design choices that may not meet current Australian standards. In Australia, each state has its own building certification process, and not all high-rises built before recent code updates comply with modern safety requirements. A building surveyor can check whether windows have restricted openings and whether balcony balustrades meet the 1.2-metre minimum height. Do not take the real estate agent’s word for it.

How to pick a high-rise apartment you won’t regret

Match the floor plan to your next five years, not just today

The single biggest mistake in the data is buying for your current life stage alone. If you expect your household to grow or your working patterns to change, a one-bedroom apartment without a second living area or a flexible layout will force a move. Look for apartments with a separate study nook that can convert to a small bedroom, or a two-bedroom layout where you can use the second room for guests and later for a child. The resale pool for one-bedroom apartments is narrower, so if you do buy small, make sure the building and location have strong rental demand. That gives you a fallback if you need to move but cannot sell quickly.

Read the strata documents like a detective

This is where the real condition of the building shows up. Request the following in writing from the vendor or their agent: the last three years of annual general meeting minutes, the current sinking fund forecast, the building’s depreciation schedule, and any outstanding insurance claims. Look for repeated mentions of water ingress, lift breakdowns, or disputes between owners. Cross-check the sinking fund balance against the building’s age and the condition of common areas. A building with a healthy sinking fund and no special levies in the past five years is a safer bet than one with low levies and a history of emergency repairs. If the documents are incomplete or the owners’ corporation refuses to share them, that is a warning in itself. A real estate lawyer can review the strata records and flag anything unusual before you exchange contracts.

Check what you cannot change

Strata by-laws restrict everything from pet ownership to balcony storage to short-term letting. Ask for a copy of the by-laws before you buy. If you plan to rent the apartment out, check whether the building has a cap on investor-owned lots — some strata schemes limit the percentage of rental units to maintain owner-occupier majority. That affects your exit strategy if you need to move and keep the property as an investment. Also check for any pending or recent building-improvement notices from the local council. A building that has been ordered to replace non-compliant cladding may be facing years of disruption and large levies.

What’s coming: building standards and strata reforms

Australian state governments are increasingly tightening building certification for high-rise residential towers. The 2018 Grenfell-style cladding audits in New South Wales and Victoria have led to remediation orders that can cost owners tens of thousands. Newer buildings designed to the National Construction Code 2022 have stricter fire-safety and energy-efficiency requirements, but older buildings may not. Separately, several states are reviewing strata laws to improve transparency around sinking funds, special levies, and dispute resolution. These changes could make high-rise ownership more predictable, but they could also increase compliance costs. Factor the age of the building into your decision — a building less than ten years old is more likely to meet current standards but may still have latent defects that take time to surface.

Frequently asked questions about high-rise living in Australia

Is high-rise living cheaper than a house in the long run?
Not always. Lower purchase price is offset by strata levies, special levies, and generally lower capital growth compared to detached housing in most Australian markets. Run the numbers over a 10-year holding period including all costs.
Can I get a mortgage for a high-rise apartment easily?
Lenders are cautious with apartments in buildings over a certain height or with known cladding issues. Some lenders cap loan-to-value ratios at 70–80% for high-rise stock. Check with your lender before making an offer.
What happens if the strata levies increase sharply?
You are legally obliged to pay. There is no cap. If the sinking fund is low and a major repair is needed, the owners’ corporation can raise a special levy that you must pay within a set timeframe. Always review the sinking fund forecast before buying.
Are high-rise apartments safe for children?
They can be, but you need to verify window restrictors, balcony balustrade heights, and fire-sprinkler coverage. Buildings built before 2010 may not have modern safety features. Ask for the building’s fire-safety certificate and check balcony barriers in person.
Can I rent out my high-rise apartment if I move?
Check the strata by-laws first. Some buildings cap the number of rental lots or prohibit short-term letting through platforms like Airbnb. Violating by-laws can result in fines or forced compliance. A landlord-tenant lawyer can help interpret the rules.
Do high-rise apartments hold their value better in some cities?
Value retention varies by city, suburb, and building quality. In central Sydney and Melbourne, well-located high-rises with good amenities tend to hold value. In outer-suburban high-rises with weaker demand, capital growth is often slower than houses in the same area.

What the policy push versus actual demand tells us

Australian governments have spent three decades promoting high-rise living as the solution to urban sprawl and infrastructure costs. Yet only 4% of the population lives in them, and most residents eventually leave because the apartments are too small. That mismatch suggests that high-rise, as it exists today, works best as a transitional housing option — not a long-term home for most people. Buyers who go in with their eyes open about strata costs, safety checks, and their own future space needs are the ones who avoid getting stuck. The rest tend to join that 60% who are already looking for the exit.

Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.

If this was useful, you might also want to read Renovate or Relocate: Critical Questions Every Aussie Homeowner Must Ask.

Sources and Further Reading

High-Density Living: The Future of Australian Cities or a Recipe for Disaster? — Explores broader urban-planning questions around apartment living and community design.

Luxury Property Trends in Australia: What the Super-Rich Are Buying — Context on the high-end apartment market and what drives demand at the top.

The Times Australia (2024). The government wants more of us living in high-rises — here’s why Australians don’t want to. 🔗

The Conversation (2024). The government wants more of us living in high-rises — here’s why Australians don’t want to. 🔗

Philstar Global (2024). The pros and cons of high-rise living. 🔗

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Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
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