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More townhouses are on the way to middle ring suburbs near you

A surge in approvals for townhouses and apartments across Melbourne’s middle-ring reveals more homebuyers are targeting blue chip suburbs for new options. 
 
A Victoria Residential Development Index (from the Urban Development Institute of Australia) shows an almost 10% growth in approvals in Melbourne’s middle ring suburbs over 2017-2018.
 
Topping the list were approvals for apartment buildings of 3 storeys or more, growing by 26% during the 2 year period. Approvals for semi-detached townhouses grew by almost 15%.
 
Standout areas were the suburbs of Oakleigh, Clayton and Murrumbeena, with growth in approvals of 240% over the 2017-18 financial year. Approvals in Bayside suburbs also increased dramatically - by an average of 37%.
 
Demand surging in the Middle Ring
 
According to Danni Addison, who heads the Urban Development Institute of Australia in Victoria, the data signals a surge of townhouses and apartments into middle-ring suburbs with well established infrastructure and services. Apartment building is shifting from inner-urban districts to middle ring suburbs.
Addison said “This reveals a maturing of the apartment market, finding balance between concentrated inner-city developments and smaller scale in-fill type of developments in established middle-ring districts.”
 
Although most middle-ring suburbs are showing growth signs, there are those that dropped, with Stonnington down by 22%. However the inner-east is still getting a share of new projects such as the newly completed fourteen townhouse development ‘Manteau’ in South Yarra where the property owners teamed up to sell the combined property site at 225 and 227 Williams Road to boutique developer Make Property Group. 
 
After the elderly owners at 227 Williams Road both passed away within six months, the neighbours at 225, who knew the family well, suggested combining both properties for sale as a larger development site.
 
Ms Addison says more of these diverse types of housing were needed in Melbourne, especially in the middle-ring suburbs where the demand is so strong.
 
“Investment in infrastructure in middle Melbourne is needed urgently to assist the housing and population growth, with major projects like the Suburban Rail Loop essential to maintain the liveability in these burgeoning areas. It’s great that the supply of apartments and townhouses in desirable middle Melbourne is strong and is growing. However this channel still wont be enough to balance the decline in supply of new apartments, and new house and land lots in the outer growth area suburbs.”
 
Ms Addison says a continued pipeline with new housing options in all forms of housing is absolutely essential for keeping downward pressure on overall home price affordability in Melbourne.
Posted: 19/12/2019 10:44:45 AM
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