The prospect of smaller shoebox apartments in Auckland may not suit families, but they could suit other people.

Building apartments as small as 30 square metres could become legal under proposed changes to Auckland's planning rules.

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That's a backtrack on restrictions introduced in 2007.

Property Investors Federation executive officer Andrew King said many young people want smaller, cheaper apartments.

He reports there are some apartments "designed for families" in suburbs like St Lukes.

"They have two or three bedrooms, they're a little bit larger, but they're further away from the city."

The proposed changes to planning rules would see the the minimum size of a studio apartment reduced from 35 square metres to 30 metres.

The minimum for a one-bedroom apartment could be reduced from 45 to 40.

Andrew King said having more smaller, cheaper apartments could help satisfy Auckland's growing housing demand.

"If they're available and the financing of them was cheaper, it would certainly help and it would certainly satisfy some demand out there."

King said that would mean cheaper rents for students and young people, and retired people who want a smaller place to stay.

Smaller apartments not necessarily cheaper

A carpark-sized apartment has raised eyebrows in Auckland after selling for $104,000.

Property experts say apartment living is becoming increasingly popular.

Some banks require a 15 percent deposit for those wanting to buy one, compared to 20 percent deposit for a house

Auckland branch president of the Property Council Phil Eaton admits in the past, apartments have had a bad rap.

"I think we've had some bad examples of apartments and that's probably turned a few people off, but I think what we're seeing now is a much greater quality of product and I think council have got their processes in place with their design panel."