Australia’s new real estate trend “Low Rise Medium Density Housing”
Due to the changing population in Australia, different property needs increased. Housing developers have developed “Low Rise Medium Density Housing” to address both the aging and the rapidly growing population. The goal of real estate developers is to meet changing demographic needs.
Anna Porter, valuer, property commentator and CEO of Suburbanite says “The Low Rise Medium Density Housing Code fast tracks complying development approval for one- and two-storey dual occupancies (side-by-side), manor houses, dual occupancies (one above the other) and terraces,” explained Ms Porter.
“This means the DA’s for this style of housing are being pushed through the councils at a fast rate but some councils have opted for an extension to avoid fast-tracking.
“Deferral of the code, which fast-tracks approval to 20 days if it is compliant, has been granted to councils like Lane Cove, Northern Beaches, Liverpool and Bankstown until July 2019.”
According to realtors, the demand for “Low Rise Medium Density Housing” will increase. However, according to Ms. Porter, it may be the exact opposite.
“An automatic value increase because of a new planning policy isn’t a certainty and when there is a jump in supply of suitable sites this can have the opposite effect,” she said.
“We see some early adopters of the policy may be the winners, but those that wait will become one of many sites that will literally walk through the council planning process with ease and that reduces any expected uplift in values from the changing site use.”
Mrs. Porter talked about the opportunities of newly developed houses.
“The policy will likely devalue development sites that match this criteria as many home owners will jump on this opportunity and push their property through as complying development and given that so many properties will now have more development opportunity that won’t be a unique feature,” Ms Porter said.
“When there is an over-supply of ‘easy to get DA’s’ this lowers the value of them in the market place and will result in devaluing of development sites across greater Sydney over the next few years as a result.”
She added downsizers would be the demographic most likely to benefit from an increase of medium density housing.
“This means the ageing population will have more housing stock to choose from when looking to downsize and their large style family homes will go to market,” she concluded.
Sevdenur Demir / realestatecoulisse.com
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