Medium Density Housing

Prominent Australian homebuilders, Rawson Group, has announced it is diversifying its property offering, with the launch of a dedicated medium density division for upcoming projects across New South Wales.

Rawson Groups medium density division is set to deliver 340 new medium density dwellings over the next three years, as well as its first community development in Leppington in south-west Sydney.

The first project underway for the new division lands in south-west Sydney, a $20 million investment in Leppington for Rawson Group&rsquo;s new Tegel Park development, where 80 new residents will call home by mid-2023.

[smartcode_project:default project_id=112686 project_image_fid=196606]

The project offers a selection of 17 two-storey four-bedroom, three-bathroom family homes, competitively priced between $998,000 to $1.06 million, in addition to one five-bedroom, two-bathroom heritage house.

Leppington will also see construction a&nbsp;co-educational pre-K to year 12 Anglican school, Leppington Anglican College, construction of Willowdale Hotel, a brand new $8.5 million pub, two medical precincts within two-kilometres, and a $72 million new Woolworths&rsquo; Leppington Village Shopping Centre.

Rawson Group&#39;s new head of the division, Anthony Dalla Fontana,&nbsp;says the Tegel Park development in Leppington was first-class, and offered enviable amenities at an amazing price point.

[smartcode_project:default project_id=112686 project_image_fid=196604]

&ldquo;Tegel Park will be unique as all 18 homeowners will have access to their own private heritage park that will form the focal point of the community, creating a green oasis that encourages neighbourly interaction. Several of the site&rsquo;s charming original features have been retained, including the heritage palm trees that line the one-acre park and an existing cottage that&rsquo;s been transformed into a unique residence.&rdquo;

Rawson Group Managing Director, Nick Chandler, said the move for the business came at a crucial time for the Sydney housing market, with many priced out of owning properties in what some are calling a housing crisis.

&ldquo;Sydney is projected to need an additional 725,000 homes by 2036 to accommodate its growing population. Conditions are tough for home buyers with the sharp increase in cost of land, alarming increases in the cost of living, limited salary growth and rising interest rates. As a result, many buyers are considering medium density housing, such as terrace homes, as their entry point into the market as the cost for them to purchase a house and land package has become prohibitive.

[smartcode_project:default project_id=112686 project_image_fid=196608]

&ldquo;It&#39;s the great Australian dream of owning our own home and land, and we&rsquo;re extremely proud to be entering the market with our new offering. Rawson Group has put in extensive research into what first homeowners and investors are looking for, and we&rsquo;re excited to showcase what medium density housing can provide for a much friendlier and more affordable price point.&rdquo;

Tegel Park will offer the choice of two distinct double-storey home designs, each available in one of two floor plans, with the option to add a private guest suite, which can serve as a separate living zone and includes a discreet private porch.

The first stage is now selling in the Leppington project, with the first six homes currently on sale. The remaining 11 homes and heritage house are tipped to hit the market in June.

[smartcode_project_cta: project_id=112686]

The first project underway for the new division lands in south-west Sydney, a $20 million investment in Leppington for Rawson Group’s new Tegel Park development, where 80 new residents will call home by mid-2023.



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Rawson Group diversifies offering across NSW with newly launched Medium Density Division

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Despite being in the midst of a nationwide dwellings construction boom over recent years, the total volume of housing stock increased by a lower proportion in Brisbane, Adelaide, Perth and Hobart between 2011 and 2016 than they did between 2006 and 2011.
Over the five years between the Census collection periods, there has been a shift towards denser housing stock being added to the capital cities is evident.
Interestingly, while driving around inner city areas you would be led to believe that it is higher density units which have been most abundant in new supply, the data points to medium density supply having ramped up the most.
<a href="https://www.propertyobserver.com.au/images/2017/07/06/Screen%20Shot%202017-07-06%20at%2011.35.36%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/06/Screen%20Shot%202017-07-06%20at%2011.35.36%20am.jpg" alt="">
In Sydney (17.9%), Melbourne (61.0%), Brisbane (29.6%), Adelaide (46.5%), Perth (49.4%) and Canberra (36.9%) it was medium density housing types which recorded the greatest increase in stock over the five years.
In each of these cities, except for Adelaide and Perth, separate house stock saw the smallest increase of the three housing types over the five years.”
Looking at the proportion of total housing stock by type based on the Census data, across each capital city, separate houses remain the dominant property type.
<a href="https://www.propertyobserver.com.au/images/2017/07/06/Screen%20Shot%202017-07-06%20at%2011.35.46%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/06/Screen%20Shot%202017-07-06%20at%2011.35.46%20am.jpg" alt="">
However, given the previously presented data, the proportion of separate houses has fallen over recent Census periods.
The data indicates that in most capital cities, medium and high density housing remain a relatively small but increasing proportion of the overall housing mix.
Ten years ago in Sydney, 61.7% of housing stock was separate houses, and in the latest Census 55.7% of housing stock was separate houses.
If this trajectory continues by the 2026 Census less than half of Sydney’s housing stock will be separate houses.
With ongoing under investment in much needed infrastructure, there are significant lifestyle benefits associated with living closer to the city centre however, the supply of land in the areas closer to the city centre is limited.
This is leading to increasing levels of medium and higher density dwelling construction and premiums for detached housing located close to the city centres.
<a href="https://www.propertyobserver.com.au/images/2017/07/06/Screen%20Shot%202017-07-06%20at%2011.35.57%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/07/06/Screen%20Shot%202017-07-06%20at%2011.35.57%20am.jpg" alt="">
Although approvals for these types of properties has slowed recently, it is anticipated that construction of medium and high density dwellings will remain elevated relative to historic levels.
I believe we’ll see the shift towards a greater proportion of capital city housing being medium and high density will continue over the coming years.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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ckusher-ujnxiKuFQs

The rise and rise of medium density housing: Cameron Kusher

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Australia is increasingly linked to a fast-growing global population. The populations of Sydney and Melbourne are both expected to <a href="https://www.theaustralian.com.au/business/property/australian-cities-face-great-growth-challenge/news-story/a89da2e7a566bd2c6d03cde4ed377bc7" target="_blank">exceed 8.5 million by 2061</a>. What will Australia’s cities look like then? Will they still be among the world’s <a href="https://chartingtransport.com/2015/11/26/comparing-the-densities-of-australian-and-european-cities/" target="_blank">lowest-density cities</a>?
Such sprawling cities result in economic (productivity), social (spatial disadvantage) and <a href="https://www.sciencedirect.com/science/article/pii/S1877705817316685" target="_blank">environmental weaknesses</a> (including a very big ecological footprint). Can our cities transform themselves to become more competitive, sustainable, liveable, resilient and inclusive?
Australian governments at all levels aspire to these goals, but they require <a href="https://www.publish.csiro.au/book/5854/" target="_blank">multiple transitions</a>. The prospects of success depend on the transformative capacity of four groups of stakeholders: state government, local government, the property development industry, and community residents.
Our <a href="https://www.propertyobserver.com.au/https://www.mdpi.com/2071-1050/9/10/1718" target="_blank">newly published research</a> has found such capacity is lacking, so transformation on the scale required <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/House/ITC/DevelopmentofCities" target="_blank">remains a major challenge</a>. Our research included a survey in Sydney and Melbourne of suburban residents’ attitudes to medium-density living and neighbourhood change – essentially “sounding out” community capacity for change. This article explores some of the findings.
So why do community attitudes in the suburbs matter? The key change involves the form and fabric of Australian cities: from a low-density suburban city to a more compact form characteristic of Europe. This requires regenerative redevelopment: redirecting population and property investment inwards to brownfields and greyfields redevelopment, rather than outwards to greenfields development, and increasing the supply of medium-density housing – the “<a href="https://www.planning.nsw.gov.au/Policy-and-Legislation/Housing/Medium-Density-Housing" target="_blank">missing middle</a>”.
Unlike greenfields and brownfields, however, greyfields are occupied. More intensive urban infill represents a challenge to residents of established suburbs to share their higher-amenity, low-density space. And elected local councillors tend to align with their residents’ resistance to “overdevelopment” and changes in “neighbourhood character”.
<h2>Are attitudes changing?</h2>
In September 2016, the <a href="https://www.swinburne.edu.au/research/urban-transitions/about/" target="_blank">Centre for Urban Transitions</a> surveyed 2,000 Sydney and Melbourne households in established middle-ring suburbs.
Asked “What type of dwelling would you want to live in?”, nearly 60% of residents in both cities favoured a detached house and yard. This is down from 90% in the early 1990s. So, in the space of one generation, attitudes have shifted significantly toward embracing higher-density living.
However, living arrangements extend beyond the dwelling. They include the neighbourhood and wider suburban context. Our survey explored three distinctive living environments:
<ol>
<li>
a separate dwelling with a garden in a suburb with poor public transport
</li>
<li>
a medium-density dwelling with no garden but close to public transport
</li>
<li>
a high-rise apartment in the CBD or surrounding areas.
</li>
</ol>
Responses revealed that when location was combined with housing type, this significantly increased preference for medium-density housing when located in established suburbs with good public transport and access to jobs and services. In both Sydney and Melbourne, 46% favoured this. That was the same proportion as preferred a separate dwelling and garden in a car-dependent suburb. Just 8% opted for apartments.
The question is whether these shifts in preference are reflected in residents’ attitudes to higher-density housing in their own neighbourhoods.
The survey found 71% of respondents were “aware of neighbourhood change in their locality”. This figure was identical for renters and property owners.
Fewer than 10% of residents in both cities think such change is a good thing, but almost 40% understand it has to happen. Just over 10% are neutral. Preference for less or no change sits around 45%.
This suggests capacity to accept change is growing, but it is grudging and not strongly endorsed.
The survey’s final stage probed the extent to which property owners contemplating a move were aware of, or open to, options of selling as a consortium of neighbours. While not common, examples are being reported with value uplifts resulting from lot consolidation ranging from 10% to 100%.
One-quarter of Sydney respondents were open to consolidating property for sale with neighbours. This number was even higher (39%) for investment properties.
<h2>What needs to be done?</h2>
Consolidated lot sales are not part of the business model of most real estate agencies, local government, or property developers.
It’s an area where the property development industry lacks capacity and is still failing to respond to the medium-density urban infill challenge. And state governments are reluctant to extend mid-rise medium-density zones in the big cities beyond designated activity centres and transport corridors.
Supply of well-designed medium-density housing needs to be greatly increased in the well-located, established, low-density, middle-ring suburbs. And it needs to happen at a precinct scale of redevelopment beyond that of knock-down-rebuild. This would enable more innovative, sustainable and aesthetically attractive development.
Infill targets for new housing in Australia’s largest cities range from 65% (Brisbane) to 85% (Adelaide), with Melbourne and Sydney in between. But these targets are not being achieved (not even Perth’s 47%). Greenfield development is still the <a href="https://www.propertyobserver.com.au/https://apo.org.au/node/75359" target="_blank">main demographic absorber</a>.
The Victorian government’s latest metro strategy introduced a new policy direction to “provide support and guidance for greyfield areas to deliver more housing choice and diversity”. That doesn’t alter many residents of these areas remaining resistant to change.
State and local governments need to introduce new statutory planning instruments and guidelines to enable greyfield precinct redevelopment. These are the focus of research in three Commonwealth Co-operative Research Centres (see <a href="https://www.crcsi.com.au/" target="_blank">here</a>, <a href="https://www.lowcarbonlivingcrc.com.au/" target="_blank">here</a> and <a href="https://watersensitivecities.org.au/" target="_blank">here</a>).
In an urban planning system that remains strongly top-down, local government serves as the main interface with local communities and property developers due to its role in planning approvals. Often this is reflected in local government’s gaming of the state government’s residential zoning schemes to ensure housing is “locked up” in minimal change zones. This effectively indicates that more intensive infill housing should happen “somewhere else” (the NIMBY syndrome).
<a href="https://www.constructionedge.com.au/about/" target="_blank">David Chandler</a>, a leading figure in Australia’s building and construction industry, <a href="https://sourceable.net/shutting-the-garage-door-after-the-car-has-bolted/" target="_blank">sums up the challenges</a>:
<ul>
<li>The capabilities needed to design and build small-scaled medium-density housing projects of three to ten dwellings up to three storeys atop below-grade parking have yet to be developed. If medium-density dwellings of the type described here are to make up a third of the housing landscape, a new marketing platform and delivery model will be required.</li>
<li>
<img src="https://counter.theconversation.com/content/84693/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">If governments are seriously minded to harvest the potential of greyfield sites and the urban middle, they will not only need to bring the community along in support of these more modest densification initiatives, they will need to be proactive in making sure the housing industry has the capabilities to deliver them.</li>
</ul>
<a href="https://theconversation.com/profiles/peter-newton-2278" target="_blank">Peter Newton</a>, Research Professor in Sustainable Urbanism, <a href="https://theconversation.com/institutions/swinburne-university-of-technology-767" target="_blank">Swinburne University of Technology</a>
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/becoming-more-urban-attitudes-to-medium-density-living-are-changing-in-sydney-and-melbourne-84693" target="_blank">original article</a>.
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