Sydney, 16 August 2024 — As the national housing shortage intensifies, the property sector is embracing innovation. A recent Australian Financial Review feature (reproduced below) highlights how developers are turning to micro apartments and flexible living models to meet rising demand and overcome supply constraints.
The article sheds light on a growing trend: compact, efficiently designed units (often under 30 sqm), paired with shared amenities and hospitality-style flexibility, are gaining traction as a viable and scalable housing solution in high-demand urban markets.
For real estate capital and operating platforms, this model offers both opportunity and complexity. On the plus side, micro apartments can deliver strong rent per square metre returns in core locations, and their modular nature facilitates replication. However, success depends heavily on high operational standards, customer experience, and efficient cost control.
Design excellence, amenity programming, and resident retention will differentiate winners. The conventional perception of “micro” as merely minimal must give way to “micro done well.”
Pro-invest Group is closely monitoring — and participating in — this evolution. Our multi-asset, operationally integrated platform positions us to explore flex-living concepts in parallel with our existing hotel and residential capabilities.
We see micro and flexible living not as a replacement for Build-to-Rent or traditional residential, but as a complementary layer in our broader housing strategy. Combined, these models help us address the supply gap responsibly, sustainably, and aligned with modern lifestyles.
