As we continue to see the desire for luxury living spaces shrink, some existing condominium markets are starting to segment their spaces in order to sell. This smaller space also matches the new trend for smaller homes.
Many are calling it the “micro-condo” trend. Others see it as an extension of the already powerful “sustainable” trend. I think it is a combination of the two which makes it powerful as a selling point.
The micro-condo trend is based on not only constructing smaller spaces in development but also sub-dividing existing luxury space into smaller, more affordable units. The emphasis and benefit lies in customization of the small space. An increasing number of reports are showing a shift to smaller living spaces, but also a desire to maintain luxury finishes and appliances. Those moving from the suburbs are willing to skimp on space but not on finishes like gas stove tops, subzero refrigerators, and high-end cabinetry.
The Desire for Customization
A big draw for such a small space is the option for customization. Most of these units can be divided as desired. The walls are removable so buyers can manage the square footage to their liking. Other options include a choice of flooring and fixtures. Buyers are getting exactly what they want out of the unit which is good for the seller as happy buyers will refer friends.
Location Is Everything
Another fantastic selling point for most of these “micro-condo” spaces is their locations. Many are located in urban settings which are more appealing to someone looking to buy a smaller space. Think Generation Y or an executive looking for a second home for business. These sorts of spaces give Generation Y their luxurious needs without the huge costs. The business executives can buy a second home without sacrificing the luxuries they’re use to.
Most of these “micro-condo” spaces occupy only 500 – 700 sq ft, which means location plays the largest role in a buyer’s decision. Someone will buy this space because it is close to work or because it is in a location they like. The luxury amenities and finishes are a perk. If you are thinking about re-purposing your condo building, I would suggest that you think about your location before you make a decision. Why would someone buy a home in this building and this location? We are finding many great options for existing product. You just have to think outside the box.