The Future of Australian Cities
Recent statistics from the New South Wales government paint an interesting picture of the Sydney real estate market. Figures show that just 35 detached houses were built in inner city Sydney during 2016; compared to 2,836 multi-unit dwellings.
Does this hint at the future of other Australian cities? Melbourne’s inner city is projected to complete 5,276 units within the year to April 2017, while Brisbane is expecting 2,495. There is a trend appearing amongst the majority of major cities across Australia, but why?
As land becomes more and more covetable in idealistic locations, prices are drastically increasing. It makes sense then that constructing units and apartments can not only help with capitalising on land investment, but also assist in easing the undersupply of housing currently felt in metropolitan areas.
High-rise culture is becoming an increasingly popular lifestyle for Australians. There are several factors influencing this. Affordability is always a main driver when it comes to property, and the price of a unit or apartment is substantially lower than a detached dwelling.
Location is another force affecting the choice of apartment over house. People are willing to sacrifice certain elements of a home in order to have a preferred location that may be closer to work, schools or other desirable amenities.
The additional supporting facilities that apartment complexes offer can also persuade potential homebuyers. Pools, gym and restaurants are just some of the augmenting facilities that can occupy areas within the building.
It is also interesting to note that the rate of home ownership is beginning to decline. The number of Australian adults who own their own home was 51.7% in 2014, down from 57% in 2002. This hints at more Australians either opting to rent, or having to rent longer before purchasing a home.
Whether owning or renting, it’s obvious that units, apartments and high rise living will play an important part in the future of Australian cities.