Astronomical Housing Prices Drive Australians Out of the Suburbs

In Sydney, "the most unaffordable housing market in the English- speaking world", sky-high housing prices are driving residents priced out of the suburbs into apartments downtown, reports Nichola Saminather.

"Apartment ownership is on the rise as the Great Australian Dream of a house in the suburbs fades for buyers priced out of the market," says Saminather. "Apartments and townhouses accounted for 35 percent of new housing construction in the three months ended in Sept. 30, compared with 29 percent five years earlier and 21 percent 20 years ago, according to the federal statistics bureau."

“'When you look at the future of residential living in Australia, apartments will be a big component of it,' John Kim, head of Australian property research at CLSA Asia-Pacific Markets, said in a telephone interview. Developers of only detached houses 'would have to seriously consider getting into apartments.'”

Saminather attributes this trend to several factors, including efforts by Australia's major cities to limit sprawl. "Australian state authorities are restricting land releases on city fringes and demanding that developers help pay for roads, transport and other amenities when building outside the limits."

"Buyer demand is strongest for new inner-city, low-rise apartments and townhouses, and is expected to strengthen for high-rise apartments in city centers and inner-ring suburbs in the next 12 months, an October survey of residential property investors, developers and brokers by National Australia Bank Ltd. found."

Hat tip to Daniel Lippman

Full Story: Australians Priced Out of Dream Swap Backyards for Balconies

Comments

Comments

Michael Lewyn's picture
Blogger

confusing

The American conventional wisdom is that where the city is growing, sky-high housing prices drive people into the suburbs, not into the city. So I find this story a bit odd.

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