Strata reform could trigger 100,000 new dwellings in Melbourne: Urbis

Melbourne's housing supply could see a significant boost through strata reform, according to new research by Urbis.

The study identified over 1,000 strata sites within a 15km radius of Melbourne's CBD that could collectively deliver over 100,000 additional dwellings. 

Urbis utilised spatial data to locate all strata developments within 15km of Melbourne CBD with more than one property/lot present and an existing address pre-2010.  

The study identified all lots with zoning that allows for residential use and calculated the potential additional dwelling capacity based on current planning controls. 

The research found that the underlying land value of these sites exceeds the value of the existing strata titled lots.  
This indicates a significant opportunity for redevelopment and uplift in the housing supply. 

"Repositioning underdeveloped strata sites has the potential to deliver a much-needed uplift in well-located housing supply," said Mark Dawson, Director at Urbis. 

"Notably, around half of this dwelling uplift is located within the City of Melbourne. With over 140,000  key workers employed within the City of Melbourne, additional housing supply close to employment centres would provide critical relief to those who often need to live close to where they work."

The research also highlights the need for legislative reform to facilitate these changes. Urbis suggests amendments to the Owners Corporations Act 2006 to allow for a collective sale with a 75 per cent consensus and the introduction of legislation similar to the NSW Act - Strata Schemes Development Act 2015. 

Urbis Director, Alex Nunn, said the State's ambition to deliver 70 per cent of new housing in infill areas is well-supported by this strata reform.

"Measures that align and amplify proposed policy to unlock housing supply within the inner and middle ring are highly welcomed," Nunn said.

"The liveability and demand for housing in these localities has been proven over the years and ageing strata developments occupy some of the most sought-after real estate in Victoria."

Urbis concludes that strata reform could unlock significant housing supply in Melbourne's inner and middle rings, aligning with the State's infill housing supply goals and providing much-needed housing for key workers.