While high-density living is on the rise, it’s medium density housing that is gaining the most in popularity.
In a recent analysis by CoreLogic that looked at 2016’s Census dwelling data, it was revealed that there was a noticeable shift towards medium density housing across Australia, and it looks set to continue in the coming years.
“Interestingly, while driving around inner city areas you would be led to believe that it is higher density units which have been most abundant in new supply, the data points to medium density supply having ramped up the most,” said CoreLogic Research Analyst Cameron Kusher in the report.
“In Sydney (17.9%), Melbourne (61.0%), Brisbane (29.6%), Adelaide (46.5%), Perth (49.4%) and Canberra (36.9%) it was medium density housing types which recorded the greatest increase in stock over the five years.
“In each of these cities, except for Adelaide and Perth, separate house stock saw the smallest increase of the three housing types over the five years.”
Separate houses remain the dominant property type according to Census data, however in most capital cities, medium and high density housing remain a relatively small but increasing proportion of the overall housing mix.
As an example, 61.7 per cent of housing stock was separate houses in Sydney 10 years ago, however the latest Census saw this figure decrease to just 55.7 per cent.
“If this trajectory continues by the 2026 Census, less than half of Sydney’s housing stock will be separate houses,” Mr Kusher said.
Mr Kusher noted that there are significant lifestyle benefits associated with living closer to the city centre, however the supply of land in these areas is limited. This is leading to a rise in medium and higher density dwellings, while detached housing is attracting a premium price tag.
“Although approvals for these types of properties has slowed recently, it is anticipated that construction of medium and high density dwellings will remain elevated relative to historic levels,” he said.
“I believe we’ll see the shift towards a greater proportion of capital city housing, being medium and high density, will continue over the coming years.”