Three minute read.
Let’s talk about housing density instead.
Town planning is encouraging more housing density in our middle to outer suburbs.
Sometimes this is done as a forerunner to improved local transport infrastructure.
But most of the time it is done to meet population targets – more bums of seats, so to speak, which in simple terms leads to more council rates, more development monies and a bigger share of the various taxation receipts.
The density targets are often eye wateringly high.
They are often in excess of 25 dwellings per hectare and at times, much higher.
So how dense are our cities?
The table below provides some interesting statistics.
You can see from our table that it is a very big ask to lift suburban densities to the anticipated levels.
For those who may want to question these statistics, let’s outline how I worked them out, using New Farm, in inner Brisbane, as the case study.
- New Farm is 2.1km², which is 210 hectares.
- There are 14,100 residents as at mid-2016.
- This equates to 6,714 people per km² or 67.14 people per hectare.
- There are, on average, 1.9 people per dwelling.
- This, then, equates to 35.3 dwellings per hectare.
Remember, over half of our urban space is used for roads, parks and non-residential land uses etc.
See, few fully appreciate what, say 25 dwellings per hectare, really looks like.
Only a handful of our suburbs have this degree of housing intensity.
Before I go further, here is a voice from the bleachers.
Toni is a long-time Matusik Missive subscriber.
A friend in Greenslopes has had two apartment blocks appear in her street in the last twelve months.
They got special exemptions for a reduced number of car spaces, due to their proximity to Logan Rd. Now, locals can no longer park in the street, the garbage trucks could not drive up the street and as of a few weeks ago, the Council banned parking in literally half of the street. This is now affecting prices for existing properties in the street, as there is no reasonable extra parking!!
So from all of this, the ONLY winners are the developers, who will be long gone very soon, when the units are all sold off – oh, and of course BCC, with all the additional rates coming in.
There are some serious issues here, not only from a market match perspective, but also in what I call social engineering – the act of rebalancing a suburb’s liveability.
In the meantime, expect a lot of local resistance and a big impact on sale prices and rental yields in these areas.
Maybe we should be tackling this from a different angle.
What if we limit population growth to an acceptable limit – effectively putting up a “We are full” sign.
With the subtext saying “You are welcome, but there is a waiting list. Please join the queue.”
We have secured 100 copies of the latest edition of Michael Matusik’s Capital Cities Market Outlook Report” for just $99 plus GST.
This is a 33% saving for readers of Property Update!
Please hurry, as we have been allocated limited numbers of these reports at this price. Please click here now to secure your report and use the code: YARDNEY2017
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.