The latest data from the Australian Bureau of Statistics (ABS) reveals that there is a lack of approvals for medium density housing options like townhouses and duplexes across the country. How can this emerging trend affect Australians who are considering buying a house?
The approval figures indicate a lot of things that are going on in the housing market right now. By examining the distribution of approved housing, the areas of local government (LGA) in the regional and metropolitan centers of the south-east seem to witness a larger number of subdivisions.
In fact, a quarter of the 171,760 new housing approvals for the year to November were located in only 10 LGA regions.
"These include the ACT region, Brisbane, the Sunshine Coast and the Gold Coast Councils, parts of western Sydney and areas on the fringes of the metropolis of Melbourne, "said Eliza Owen, Australian research manager at CoreLogic.
The combined number of approved dwellings for these 10 regions alone is approximately 43,000. Of these approvals, 60.7% were for individual dwellings while 25.2% were for high density dwellings. Medium density developments, however, accounted for only 14.1% of all approvals.
This could indicate that there is a "constantly missing environment", with fewer townhouses, duplexes and other low-rise units that have been approved, said Owen.
Read also: Impact of urban confinement on the affordability of housing
As the population continues to grow, particularly in metropolitan areas, there is a need for various housing options, which the 10 LGAs apparently lack according to recent data.
"Medium density housing options may be important for young families who are looking for a more affordable housing option near city centers, but require more space than in a unit, or Australians more seniors wishing to reduce the size of their current area of ??residence to reduce housing costs in retirement, "said Owen.
This concern was not limited to the 10 LGAs. The limited growth in medium density approvals was also evident in the 478 regions that registered new housing approvals for the year. Of the total approvals granted to these LGAs, only an average of 14.9% concerned row houses, duplexes and apartment blocks of less than three storeys.
"The development of medium-density housing in Australia is particularly effective in filling large metropolitan areas, as it takes advantage of established transport and social infrastructure," said Owen.
With the expected growth in house prices this year, Owen said it was crucial to ensure a wide choice of affordable homes for buyers.
"As populations continue to converge in metropolitan areas, the demand for such diverse housing options is likely to increase. If development continues to focus on the two extremes of density, metropolitan areas could see an erosion of age diversity and family demography. " she says.
Top suburbs:
west wodonga
,
Midland
,
Mortdale
,
st peters
,
Westmead
Get help with your investment property
Do you need help finding the right loan for your investment?
Just fill in a few details below and we will then arrange for a local Australian mortgage broker to contact you and determine the features or types of loans that suit your needs. We will even help you with the paperwork. In addition, an appointment is free.
We value your privacy and treat all of your information seriously – you can check
our privacy policy here
