With prices of off-the-plan apartments decreasing, the size of the inner-city units being sold is decreasing as well. For the third quarter of 2010, the median entry price for a one-bedroom apartment property went down by 1.3 percent to $380,000 and down 0.52 percent to $526,250 for a two-bedroom property.

While the prices of units in inner cities such as Yarra and Melbourne have gone down, the floor space of apartment properties decreased as well. The floor space of a one-bedroom apartment shrunk by eight percent to 46 square metres and the floor space of a two-bedroom apartment was reduced by 11 percent to 66 square meters.

Smaller apartments are a result of a stronger demand from local and international property investors. Two-bedroom, two-bathroom properties are being reduced to two-bedroom, one-bathroom properties to trim down construction costs and increases the rental income that an investor can get. However, some banks impose larger deposits for apartment units with a floor space of less than 50 square metres.

It is important then that if you are looking to invest in property whether it is a home or a unit that you seek the advice of a mortgage broker to ensure your home loan deal is the best one for you.