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Ahmad Imam Square Wide Lo Rez 400.jpgtim Lawless
By Tim Lawless
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Three million additional strata units offer part of the solution to housing crisis

key takeaways

Key takeaways

New analysis has identified the potential to build more than three million additional strata units over almost 1.3 million sites across Australia’s capital cities, providing one potential solution to Australia’s growing housing crisis.

Largest number of sites were identified in Melbourne, followed by Sydney.

Across the local government areas, Brisbane City Council (Qld) stands out with the highest potential, along with The Mornington Peninsula (Vic) and Canterbury-Bankstown (NSW) and City of Sterling (WA).

More than half (57%) are within 2km of an existing train station, offering important transport links for commuters

A new analysis has identified the potential to build more than three million additional strata units over almost 1.3 million sites across Australia’s capital cities, providing one potential solution to Australia’s growing housing crisis.

Of those units identified, almost 500,000 (16%) are situated on ‘low complexity’ sites without any material slope, heritage rules or the risk of a hazard such as bushfire or flooding.

The analysis excludes high-rise and mixed-use opportunities, with the average number of potential units per site at just 2.5.

The largest number of sites were identified in Melbourne, with more than 472,000 lots and the potential to deliver almost 1.2 million new strata units, followed by Sydney with just under 351,000 sites and the potential for more than 934,000 new units to be built.

Potential New Strata Supply By Capital City

The report ‘The Missing Middle: The Greatest Opportunity for Medium-Density Development’, developed in partnership between CoreLogic and Archistar, assessed the development potential of capital city land that doesn’t currently have a strata development and where local regulations allow for higher density dwellings.

The analysis shows more than half (57%) are within 2km of an existing train station, offering important transport links for commuters while also leveraging the significant capital investment in transport infrastructure.

The National Cabinet had its work cut out for it to deliver on its commitment when it comes to new housing.

The National Housing Accord has laid down the challenge of delivering a well-located new housing supply.

With a target of 1.2 million new ‘well-located’ homes nationally, all tiers of government are likely to be focused on identifying and fast-tracking strategic development opportunities.

Governments are looking for ways to maximise opportunities for new well-located housing with a focus on strategic densification near transport nodes, maximising infill targets and ensuring an equitable supply of affordable housing options.”

Importantly, this analysis doesn’t identify or recommend high-rise apartments to solve the housing crisis. It identifies opportunities for low-rise strata units that would typically take the form of townhouses, duplexes or triplexes.

This style of infill development is often more sympathetic to the local character and tends to encounter less resistance from local residents who are often wary of higher densities.

Archistar co-founder Dr Benjamin Coorey added:

"The ‘Missing Middle’ report identifies significant opportunities within our urban areas to address housing shortages through more diverse, medium-density developments. These findings provide a crucial foundation for future planning and policy development across Australia.

This research highlights the latent capacity for medium-density housing solutions in urban areas, demonstrating the importance of aligning design innovation with planning frameworks to achieve sustainable growth."

Understanding the potential for the ‘Missing Middle’ is a vital step towards tackling Australia’s housing challenges. The report underscores the need for data-driven approaches to maximise underutilised land and optimise urban planning outcomes."

Ahmad Imam Square Wide Lo Rez 400.jpgtim Lawless
About Tim Lawless Tim heads up the Core Logic RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia. Visit www.corelogic.com.au
2 comments

Low rise will be more palatable to the public in terms of impact of their built form and also market demand. They will be faster and cheaper to build due to less development controls and smaller cheaper contractors. As an outcome of this it would be ...Read full version

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