MEDIA RELEASE
EMBARGOED UNTIL 12.01AM, Wednesday 9 March 2016
Medium density homes overtake stand-alone for the first time
Approvals for medium density1 housing have overtaken stand-alone homes for the first time,
according to new research from Bankwest.
The Bankwest Housing Density Report - the latest instalment from the Bankwest Financial
Indicator Series - revealed 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 Australia.
Medium density housing approvals jumped 33.9 per cent to 115,731 (from 86,430) sitting
close to the 115,758 approvals for stand-alone homes. Growth in stand-alone home
approvals for the same period was by a sluggish 1.5 per cent. See graph below.
Bankwest General Manager, Private Banking, Greg Caust, said the results reflected a longterm shift towards medium density 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,” Mr Caust 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.
“Medium density housing offers a more affordable alternative to stand-alone housing and
may help first time buyers get into the property market - particularly in capital cities,” he said.
“We know that entering the property market is a major milestone that really matters to our
customers.”
Bankwest’s First Time Buyer Deposit Report 2015, released in October, revealed that it took
an average 1.2 years longer for first home buyer couples to save a 20 per cent deposit for a
median-priced stand-alone house than for a median-priced unit in Australian capital cities.
“Higher density housing trends may be developing due to affordability issues, however they
also mean society is moving toward more sustainable living,” Mr Caust said.
“If urban sprawl is contained, populations will be closer to infrastructure, including health and
education services and public transport networks. These services then can be better
patronised and more efficient.”
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.
The movement towards increasing density in capital cities was most pronounced in South
Australia, Victoria and Western Australia where more than 96 per cent of each state’s
medium density approvals were concentrated in the respective capitals. In NSW, 89 per cent
of medium density approvals were in Sydney.
In the year to November 2015, 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 of medium density approvals at 19.7 per cent.
“The number of medium density dwelling approvals has increased in all but one of the capital
cities during the 12 months to November 2015,” Mr Caust said.
“While Hobart had the lowest proportion of medium density approvals, the city experienced
the largest increase in approval numbers, growing by 157.3 per cent – albeit off a low base
(from 96 to 247).”
Brisbane and Sydney also experienced strong growth (64.8 per cent and 45.8 per cent
respectively), followed by Canberra (34.3 per cent), Adelaide (30.2 per cent) and Melbourne
(25.8 per cent).
Darwin was the only capital city to witness a fall in medium density approval numbers, with
39.3 per cent fewer approvals in the 12 months to November 2015.
“That was probably due to low population growth and negative economic growth in the
Northern Territory,” Mr Caust said.
“In trend terms, the NT economy shrunk by 3.2 per cent in the year to September 2015 while
the territory’s population grew by only 0.4 per cent in the year to June 2015 - below the
nation’s 1.4 per cent population growth.”
While population growth has slowed, mainly due to a steep fall in net overseas migration 4,
the Australian population is expected to grow by 17.4 per cent to 28.1 million in 2025 – 4.2
million more people than in 2015, driving increasing population density.
“With increasing population density and growth in residential property prices - particularly in
Sydney and Melbourne – we can expect continuing demand for medium density housing,”
Mr Caust said.
Other key findings from the Bankwest Housing Density Report:
 The highest proportion of medium density approvals in 2015 was for 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).
 Greater Brisbane has 75.9 per cent of Queensland’s medium density approvals – up
from 70.5 per cent last year, however still well below the other capital cities. This is
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most likely due to the large number of apartments, townhouses and units in areas
including the Gold and Sunshine Coasts.
Six of the 10 regional local areas3 with the highest proportion of medium density
approvals over the past 12 months were in Queensland. Consistent with last year,
Southport had the largest proportion of medium density approvals (98.2 per cent),
followed by Surfers Paradise (96 per cent) and Robina (92.9 per cent).
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.
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 that existed at the time of the
2011 Census.
Medium density housing accounts for the majority of new dwelling approvals in
almost a third of Australia. In the 12 months to November 2015, medium density
approvals exceeded stand-alone home approvals in 30 per cent of local areas.
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.
National Medium Density Trends
Dwelling approvals by type - Australia
(annual number)
140,000
Houses
Medium Density
120,000
100,000
80,000
60,000
40,000
20,000
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%