Attached housing demand hits record highs

Attached housing demand hits record highs

Posted on Wednesday, February 19 2014 at 8:22 AM

According to a recent study by financier Bankwest, Australia’s love of medium density housing is running hot.

Demand for units, townhouses and
semi-detached homes across Australia continued to rise over the past 12 months
reaching the highest level on record.

The Bankwest Housing Density Report revealed 43.4 per cent of total new home approvals were for medium
density dwellings, which is a rise of 3.6 per on the previous year.

Mark Reid, an executive general manager at
Bankwest, says there’s an ongoing trend towards medium density property at the
expense of standalone homes.

“Smaller housing options continue to increase
in popularity as the population grows and consolidates around Australia’s
capital cities.”

Bankwest’s analysis revealed medium density
approvals increased by 22.9 per cent on the previous year, which is
considerably higher than the 6.5 per cent increase in standalone home

While data shows approvals for medium density
housing growing by a healthy 45.9 per cent over five years, approvals for standalone
homes fell by 8.5 per cent.

“The increasing popularity of medium density
housing is possibly being driven by Australia’s first-time homebuyers who are
finding it difficult to afford a standalone house.”

There was an increase in medium density
approvals across all capital cities, except Perth, according to the study.

Reid says this is probably due to the
relatively small price gap between houses and units in the Western Australian

“It only takes six months longer to save for
a house in Perth than it does to save for a unit.

“It’s possible that buyers are simply holding
out for the additional six months in order to save for a standalone home
instead of a medium density property.”

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