Flexibility the key to housing affordability

melbourne house stock image

The announcement by the Liberal Opposition to introduce strict planning controls in Melbourne’s suburbs will limit the supply of housing to Victorians and has the potential to hurt housing affordability.

Victoria is experiencing record population growth which requires more housing right across Melbourne, especially in the middle ring. It is entirely appropriate for medium density development to occur in areas with existing services and infrastructure and close to jobs, provided it occurs in an appropriate manner.

This announcement will affect first home owners, downsizers and everyone in between and creates more uncertainty for the community and industry.

“Median Melbourne house prices went up by one third in 2017. In large part that is because there are 147,000 new Victorians each year and 90 percent will live in greater Melbourne,” said Acting Victorian Executive Director, Matthew Kandelaars.

Melbourne needs a range of quality and diverse housing choices. Rather than locking up suburbs from development, it is important to match supply to the growth of our communities.

“To question the merits of a growing Melbourne is yesterday’s conversation. Today’s conversation must be about how to grow intelligently and maximise the benefits of that growth, and an essential element of that conversation is how to unlock Melbourne’s middle ring,” said Mr Kandelaars.

Source: Property Council of Australia