Shift towards apartments in Sydney and Melbourne needs government to keep up: Urban Taskforce

New statistics are showing an increasing trend towards urban apartment living in both Melbourne and Sydney, according to the Urban Taskforce.

The Sydney Metropolian Program saw three quarters of the housing approvals being for apartments, however Urban Taskforce's CEO, Chris Johnson, warns that this number could slow as delays on Urban Activation Precincts hinder supply.

“The December housing approval figures show that 76% were for multi-unit apartment projects which continues the trend at this level,” said Johnson.

“For the last three months of 2013 apartments were 73.2% of all housing approvals and 71.1% of all housing completions.”

He noted that Sydney is swinging towards more urban apartments in inner city areas with investors and owner occupiers showing interest.

“There is also a clear swing towards more urban living with its greater variety of amenities by a number of demographic groups. It is important that the planning system supports zoning for apartments where people want to live," he said.

The greatest number of apartment approvals by LGA in December for apartment approvals:
Parramatta (463)
Waverly (367)
Canterbury (316)

The highest number of apartment completions over this period:
Botany Bay (368)
Willoughby (295)

Meanwhile, in Melbourne, five high rise projects totalling 2,000 apartments were approved in just one day.

“The Victorian Planning Minister in approving a 63 storey apartment tower as well as two 55 storey towers is supporting the growing interest in apartment living in urban areas of Australia,” he said.

“The demonstration of leadership by the state government in fast tracking these approvals is a lesson for other states where approvals are often delegated to other bodies.”

He said that while many corridors in Melbourne can retain their suburban character, there are nodes where mid- and highrise is appropriate.

“The swing towards apartment living in Australian cities seems to be part of a cultural shift to favour location over dwelling size. Coming with the new form of urban living is a more co-operative approach to sharing amenities like swimming pools, parks and gymnasiums," he said.

A growing interest in rental properties may be behind much of this shift in Melbourne.

jduke@propertyobserver.com.au