Victoria leading surge in medium-density housing: Bankwest

Victoria is leading a national increase in medium-density approvals, home to two-thirds of medium-density home approvals across Australia over the past year, according to the latest report by Bankwest.

Over the last year 38% of national home approvals were for medium-density dwellings, up from 31% five years ago.

Victoria has the most, with 21,235 approvals, 36% of the national total of 59,276. This is closely followed by NSW at 16,397, which represents 28%, and Queensland at 10,300, which represents 17%.

“Melbourne might be considered the café capital and this is helping to fuel demand for city living. says Bankwest retail chief executive Vittoria Shortt.

“Factoring in affordability, a tight rental market and lifestyle choices it is not surprising to see a trend towards higher density living.”

The Australian Capital Territory has the highest percentage of approvals, with 66% of all approvals being medium density, followed by the Northern Territory at 57% and New South Wales at 49%.

ACT also grew the most over the five years, with a 23 percentage point increase over the five years.

Perth was the only state capital where the share of medium-density approvals didn’t increase. Shortt puts this down to rising incomes and land availability combined with an outdoors lifestyle.

“With gen Ys entering the market looking at the inner city as a preferred location, coupled with baby boomers that are starting to downsize, this trend towards medium density looks set to continue,” says Shortt.

The trend is predominantly taking place in capital cities with 77% of medium density approvals taking place in the city.

Source: Bankwest 

ACT’s Tuggeranong took the guernsey for the biggest turnaround. In the 2006 census just 12% of dwellings were medium density but in the last five that has increased to 74%.

Five out of 10 suburbs with the most densification were in the ACT.