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Tony De Domenico
Executive Director
UDIA
(VIC) |
Population Continues to Drive
Victorian Land Development Market in
Urban Growth Corridors
UDIA State of
the Land Report
The Urban Development Institute
of Australia (UDIA) has today released its annual
State of the Land Report which provides the most comprehensive
assessment of land supply in Australia's capital
cities.
UDIA
is the peak industry body for the urban development industry
and its 2012 State of the Land Report highlights the
insufficient levels of land supply in Australia's major
cities.
Executive
Director of the UDIA in Victoria, Tony De Domenico said, while
official data has not been released for 2010, the Melbourne
market experienced a high level of demand, with median prices
continuing to grow strongly.
"Underlying
demand remains high, with population rising in the year to
June 2010 by 99,300. While this is a high growth rate of
around 1.8%, it is slightly lower than the average growth rate
for the five years to June 2010".
"Population
growth of 99,300 is still an average of just under 2,000
people arriving from interstate and overseas and newborns
every week."
Mr
De Domenico said across the Melbourne
metropolitan area in 2009, there were approximately 152,821
lots identified as broad hectare residential supply, 138,462
of which are within Melbourne's
growth areas .
"This
means that 90% of broad hectare development will take place in
Melbourne's growth areas. There are 76,001 lots which are
available for residential development within the growth areas
constituting 55% of all stock."
Mr
De Domenico said housing affordability continues to be the
elephant in the room being under attack by complicated
planning, conflicting environment policies, high government
taxes and a lack of local government resources to process
applications.
The
median lot size of constructed broad hectare residential lots
for growth area municipalities dropped from 655mē in 2000 to
520mē in 2009.
At
the same time, the median price of vacant house blocks have
risen substantially from $65,500 to $163,000 - a rise of 2.5
times.
Action
which should be taken by governments in the UDIA national
report includes:
1)
Federal and State Governments should provide more funding to
Local Governments and relevant state agencies for the
financing of local infrastructure.
2)
Each State Government should create a body to coordinate and
monitor the timely, efficient and coordinated roll-out of
infrastructure in both greenfield and infill
developments.
3)
State and Territory planning systems should be made consistent
with COAG's nine criteria for future strategic planning of
capital cities.
4)
Through the identification of leading practice, State
Governments should encourage local councils and relevant state
agencies to reform the processes involved in assessing
applications for development.
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