MEDIA RELEASE
EMBARGOED UNTIL 12.01AM, Wednesday 9 March 2016
NSW tops country in medium density housing approvals
New South Wales has recorded the highest number of medium density housing1 approvals
in Australia, according to new research from Bankwest.
The Bankwest Housing Density Report - the latest instalment from the Bankwest Financial
Indicator Series - revealed there were 39,792 new medium density building approvals in
NSW in the year to November 20152, the largest number of all states and territories. This
figure accounts for 34.4 per cent of the nation’s total medium density housing approvals.
Medium density homes represented 60.1 per cent of all home approvals in NSW in that time,
well above the average 50 percent of medium density dwelling approvals for the nation and
the 20-year state average of 48.7 per cent.
Bankwest General Manager, Private Banking, Greg Caust, said medium density housing
was increasing in more than three quarters of local areas3 in New South Wales.
“Continued strong growth in residential property prices in Sydney means medium density
dwellings are a more attainable option for many Sydney home buyers,” he said.
“Residential property prices in Sydney grew by 19.9 per cent in the year to September 2015,
more than double the increase in house prices in Melbourne, which had the next highest rate
of growth (9.9 per cent).
“Stand-alone homes are now out of reach for many residents so they are looking to medium
density. We know that entering the property market is a major milestone that really matters
to our customers.
“Medium density offers some real benefits too. It often means people can live closer to work
and entertainment hubs and it’s also good for planning infrastructure and transport services
and reducing urban sprawl.”
Mr Caust said predictions of strong population growth over the next decade was also playing
a part, with Sydney’s population projected to grow by 16.3 per cent to 5.7 million in 2025,
bringing an additional 800,000 people to the city.
“Sydney has more areas of high density than any other capital city – there are 21 separate
one square kilometre areas which each have more than 8,000 residents living in them, while,
as a comparison, there is only one square kilometre in Melbourne accommodating that many
people,” he said.
“The influx of first time home buyers in the 12 months to June 2015 may also be contributing
to the demand for medium density housing in Sydney.”
Bankwest’s First Time Buyer Deposit Report, released in October last year, found that the
number of first time buyers increased by 4.7 per cent to 18,637, outpacing the growth in
next-time buyers and investors (3.3 per cent).
The report also found units in Sydney are considerably more affordable for first time buyers
than freestanding homes, requiring 5.3 years of saving to accumulate a 20 per cent deposit
(or $131,200) for a median-priced unit compared with 7.9 years to save a deposit ($198,700)
for a stand-alone home.”
The Bankwest Housing Density Report found the biggest increase in medium density in New
South Wales was in Ku-ring-gai, in the North Shore region of Sydney.
Ku-ring-gai also claimed the fourth highest proportion of medium density approvals in the
country.
“The popularity of medium density housing in Ku-ring-gai could be attributed to its relatively
older population looking to downsize,” Mr Caust said.
According to the 2011 Census, 37 per cent of residents were aged 50 and over, compared
with 32.3 per cent of residents nationwide.
Pennant Hills, Epping and Carlingford, all in Sydney’s north-west and Hornsby in Sydney’s
Upper North Shore showed strong year-on-year growth in medium density housing.
The 44.6 per cent growth in medium density approvals in New South Wales last year far
exceeded the 12.3 per cent growth in approvals for stand-alone houses.
Over the past four years, the highest proportion of the state’s medium density approvals was
in Sydney. Medium density represented 99.7 per cent of building approvals in Inner Sydney,
followed by Botany (97.4 per cent), Strathfield – Burwood – Ashfield (97.1 per cent) and
North Sydney – Mosman (95 per cent).
The vast majority of medium density approvals in NSW were in Sydney, with the city’s
35,422 approvals in the 12 months to November 2015, making up 89 per cent of the state’s
total.
Nationally, approvals for medium density1 housing have overtaken stand-alone homes for
the first time.
In the year to October 2015, there were 117,552 building approvals for medium density
housing compared with 115,634 for freestanding homes2.
The report – which each year mostly focusses on the 12 months to November – found the
scales then tipped back slightly in favour of stand-alone homes, but the trend towards
medium density is clearly gaining momentum.
In the 12 months to November, there were 231,489 building approvals across Australia2.
Medium density housing approvals jumped 33.9 per cent to 115,731 (from 86,430) sitting
very close to the 115,758 approvals for stand-alone homes2. Growth in stand-alone home
approvals for the same period was by a sluggish 1.5 per cent.
Mr Caust said the results reflected a long-term shift towards medium density housing which
showed no signs of abating.
“That 12 month period to October was a record breaker, with the number of medium density1
dwelling approvals reaching 117,552,” he said.
“I have no doubt medium density approvals will shortly exceed approvals for stand-alone
homes – not just occasionally, but on an on-going basis.
“Half the approvals in the 12 months to November 2015 were for medium density housing up from 43.1 per cent the previous year and well ahead of the average 34.4 per cent over
the past 20 years.”
Mr Caust said the increase in medium density housing was being largely driven by strong
approval rates in Australia’s capital cities.
The report found 89.5 per cent of medium density approvals were for dwellings in Australia’s
capital cities last year and just 10.5 per cent for regional centres. Furthermore, more than
half (57.4 per cent) of approvals in capital cities were for medium density dwellings
compared with 23.1 per cent in regional areas.
Other key findings of the Bankwest Housing Density Report:
 Consistent with previous years, the top 10 areas for medium density approvals in
NSW are all in Sydney.
 Outside of Sydney, the top areas for medium density approvals were Wollongong (78
per cent), Newcastle (68.8 per cent) and Kiama – Shellharbour (62.5 per cent).
 Four capital cities saw medium density account for more than half of all housing
approvals. Canberra had the highest proportion (74.2 per cent), followed by Sydney
(69.4 per cent), Brisbane (64.5 per cent) and Melbourne (57.9 per cent). The
proportion of medium density approvals in Adelaide was 38.8 per cent; Perth 30.2
per cent and Hobart had the lowest proportion at 19.7 per cent.
 The highest proportion of medium density approvals in 2015 was in inner city areas –
with virtually all approvals in Melbourne City (99.8 per cent) being for medium density
housing, closely followed by Sydney Inner City (99.7 per cent), Brisbane Inner (99.6
per cent) and Adelaide City (98.9 per cent).
 Nationwide, there are 225 out of 330 (or 68.2 per cent) of local areas3 where in the
four years to November 2015, the proportion of medium density approvals was
higher than the proportion of medium density housing existing at the 2011 Census.
 Tuggeranong in the ACT is increasing its housing density faster than any other local
area3, topping the list for the fourth year in a row. Over the past four years, 75.5 per
cent of dwelling approvals in Tuggeranong were for medium density dwellings, while
back in 2011 only 14.8 per cent of existing housing in the area was medium density
(a difference of 60.7 percentage points). The popularity of medium density housing
could be attributed to the lifestyle preferences of its relatively younger working-age
population. According to the 2011 Census, the median age of its residents was 35,
marginally lower than the national median of 37. Its 3.1 per cent unemployment rate
was also considerably lower than the national average of 5.6 per cent.
1 “Medium
density” in this context refers to units, townhouses and semi-detached houses.
total number of medium density approvals refers to the rolling 12-month period
3 “Local areas” in this context refers to Statistical Area Level 3/SA3, which provides a standardised regional
breakup of Australia – see ABS 1270.0.55.001 - Australian Statistical Geography Standard (ASGS)
4 Australian Bureau of Statistics: 3101.0 - Australian Demographic Statistics, June 2015
2 The
As part of Bankwest’s Financial Indicator Series, the Bankwest Housing Density Report looks at Australia’s
housing density by examining trends in dwelling approvals, along with census data on the housing stock by type
of dwelling.
More detailed analysis, data and tables are contained within the Bankwest Housing Density Report March
2016, which is available at www.bankwest.com.au
- ENDS -
For more information contact:
Sonia Voigt
Bankwest Senior Manager, Media & Communications
0475 836 037
[email protected]
Russell Quinn
Bankwest Senior Manager, Media & Communications
0477 329 447
[email protected]
About Bankwest
Bankwest provides personal and business banking solutions for more than 1.1 million retail and business
customers across Australia. Bankwest customers enjoy access to an extensive network of stores and business
centres, direct and third party distribution channels, agencies and electronic banking facilities, as well as 24-hour
telephone and internet banking. Bankwest is a division of the Commonwealth Bank of Australia.
NSW Medium Density Trends
Dwelling approvals by type - NSW
(annual number)
45,000
Houses
Medium Density
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Nov-1995
Nov-1997
Nov-1999
Nov-2001
Nov-2003
Nov-2005
Nov-2007
Nov-2009
Nov-2011
Nov-2013
Nov-2015
Source: ABS
Trends in medium density approvals by state
NSW
VIC
QLD
SA
WA
TAS
NT
ACT
Australia
Number of
medium
density
approvals
(yr. to Nov
2015)
39,792
33,988
26,069
3,611
8,001
473
660
3,137
115,731
Medium
density - % of
total
approvals
(yr. to Nov
2015)
60.1%
50.0%
53.9%
32.3%
27.5%
17.0%
41.0%
74.2%
50.0%
Number of
medium
density
approvals
(yr. to Nov
2014)
27,514
27,256
17,023
2,794
7,971
406
1,130
2,336
86,430
Medium
density - % of
total
approvals
(yr. to Nov
2014)
53.9%
46.0%
44.4%
24.8%
24.7%
17.2%
58.0%
57.7%
43.1%
Increase in
approvals
2014-2015
44.6%
24.7%
53.1%
29.2%
0.4%
16.5%
-41.6%
34.3%
33.9%
Trends in medium density approvals by capital city
Greater Sydney
Greater Melbourne
Greater Brisbane
Greater Adelaide
Greater Perth
Greater Hobart
Greater Darwin
Australian Capital Territory
Capital Cities Total
Number of
medium
density
approvals
(yr. to Nov
2015)
35,422
33,165
19,775
3,555
7,707
247
620
3,137
103,628
Medium
density - % of
total
approvals
(yr. to Nov
2015)
69.4%
57.9%
64.5%
38.8%
30.2%
19.7%
43.0%
74.2%
57.4%
Number of
medium
density
approvals
(yr. to Nov
2014)
24,294
26,361
12,002
2,730
7,497
96
1,021
2,336
76,337
Medium
density - % of
total
approvals
(yr. to Nov
2014)
64.8%
54.2%
54.1%
31.1%
27.1%
10.5%
57.9%
57.7%
50.4%
Top 10 areas for medium density housing approvals in NSW
Local area (Statistical Area Level 3)
Medium
No. medium
density - % of
density
State
total dwelling
approvals (yr.
approvals (yr.
to Nov 15)
to Nov 15)
Sydney Inner City
Botany
Strathfield - Burwood - Ashfield
North Sydney - Mosman
Ryde - Hunters Hill
Parramatta
Pennant Hills - Epping
Auburn
Chatswood - Lane Cove
Marrickville - Sydenham - Petersham
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
4,055
2,001
2,534
537
2,182
1,992
1,008
2,014
992
197
99.7%
97.4%
97.1%
95.0%
94.8%
91.5%
90.6%
90.6%
90.3%
89.5%
Increase in
approvals
2014-2015
45.8%
25.8%
64.8%
30.2%
2.8%
157.3%
-39.3%
34.3%
35.8%