What Is a 1H Apartment? Understanding This Compact Living Space

Ever seen a listing for a 1H apartment and wondered what the ‘H’ stands for? You’re not alone. In cities like Sydney, Melbourne, and Brisbane, you’ll find these tiny units popping up in new developments-often cheaper, quicker to rent, and way smaller than a standard 2BHK. But what exactly is a 1H apartment, and is it right for you?

What Does ‘1H’ Really Mean?

The ‘H’ in 1H stands for half. So a 1H apartment is a one-bedroom apartment that’s roughly half the size of a traditional one-bedroom. It’s not a studio, but it’s not quite a full 1BHK either. Think of it as a hybrid: a bedroom you can close the door on, plus a combined living, kitchen, and dining area-all squeezed into 25 to 35 square meters.

Unlike studios, where everything is open-plan, a 1H apartment has a separate bedroom. That’s the big selling point. You get privacy for sleeping without paying for a second bedroom you don’t need. The rest? It’s all one open space. No walls. No doors. Just a kitchenette, a small living zone, and maybe a fold-out desk.

How Is a 1H Different From a 2BHK?

Let’s cut through the confusion. A 2BHK apartment means two bedrooms, a hall (living room), and a kitchen. It’s the standard family-sized unit in Australia-usually 70 to 90 square meters. A 1H apartment? It’s about a third of that size.

Here’s how they stack up:

The price gap is the biggest difference. In Sydney, a 2BHK in the inner suburbs can cost over $1,200 a week. A 1H? You can find one for under $600. That’s a saving of $30,000 a year-enough to pay off credit cards, save for a car, or travel for a few months.

Who Actually Lives in a 1H Apartment?

These units weren’t designed for families. They’re built for people who want location without the cost. Think:

• Recent grads starting their first job
• Remote workers who don’t need guests over often
• Professionals who travel frequently and just need a place to sleep
• People downsizing after kids leave home
• Students who want privacy but can’t afford a full studio

One client I spoke to-Mia, 28, a graphic designer in Surry Hills-lives in a 1H. She says, “I used to share a 2BHK with two others. I paid $550 a week for my room, plus bills. Now I pay $580 for my own place, with a door I can lock. No more arguing over who cleaned the kitchen.”

It’s not about being minimalist. It’s about trading space for freedom. You give up a big lounge, but you gain control over your environment. No roommates. No noise complaints. No one borrowing your stuff.

What’s Missing? The Trade-Offs

Before you sign a lease, know what you’re giving up.

• No room for guests. If you want to host someone, they’ll sleep on the couch-or you’ll be sleeping on the couch.
• Kitchenettes aren’t kitchens. You might have a two-burner hob, a mini-fridge, and a microwave. Don’t expect to cook a three-course meal for six.
• No storage. You’ll need to buy under-bed drawers, wall shelves, and vertical organizers. Clothes? Fold them. Boxes? Stack them. Everything has to be compact.
• Sound travels. Thin walls mean you’ll hear your neighbor’s TV, their shower, their arguments. Noise-cancelling headphones aren’t optional-they’re essential.
• Hard to resell or rent out. Banks and lenders see 1H units as high-risk. Some won’t approve mortgages for them. If you ever want to sell, your buyer pool is tiny.

One buyer in North Sydney tried to get a loan for a 1H unit last year. His bank declined. The valuation came back at 40% below market rate for a standard one-bedroom. That’s not a glitch-it’s standard practice.

Is a 1H Apartment a Good Investment?

As a place to live? For the right person, yes. As an investment? It’s complicated.

On paper, 1H apartments have high rental yields-sometimes over 6%. That’s better than most 2BHKs. But here’s the catch: they’re harder to sell. Demand is narrow. Only a small group of tenants wants them. And when the market dips, they’re the first to sit empty.

Investors who buy them usually do one of two things:

• Buy in high-demand areas (near universities, train stations, CBDs) and rent to students or young professionals
• Use them as a stepping stone-live in it for a few years, then sell and upgrade

Don’t buy a 1H apartment thinking it’ll appreciate like a 2BHK. It won’t. The value comes from cash flow, not capital growth.

What to Look for in a 1H Apartment

If you’re serious about renting or buying one, here’s what matters:

• Window placement. Natural light makes small spaces feel bigger. Avoid units with windows facing a brick wall.
• Storage solutions. Built-in wardrobes, under-bed drawers, and wall-mounted shelves are a must. If it’s all open shelving, walk away.
• Heating and cooling. Small spaces heat up fast. Look for reverse-cycle air conditioning, not just a portable heater.
• Building amenities. A shared laundry, rooftop terrace, or gym can make up for the lack of space inside.
• Location. If it’s near public transport, a supermarket, or a park, you’ll use the space outside more-and that makes up for the small interior.

One thing I always check: how wide is the hallway? If you can’t open the fridge door without hitting the wall, you’re going to hate it.

Final Thoughts: Is It Right for You?

A 1H apartment isn’t a compromise. It’s a choice. A smart one-for the right person.

If you value privacy, independence, and location over space, it’s one of the best deals in today’s market. If you love hosting dinner parties, collecting stuff, or need a home office that doesn’t double as your bedroom-skip it.

There’s no shame in living small. In fact, in cities where rent is rising and space is shrinking, the 1H apartment might be the most practical option for young professionals and singles who want to stay in the city without going broke.

Just know what you’re signing up for. And if you’re thinking of buying? Talk to a lender first. Some won’t even approve a loan for a unit this small.