Where does Melbourne end (and sprawl begin)?

Drive out towards Warburton and it seems easy to see where Melbourne ends and rural life begins. One minute you’re driving through houses, shops and businesses, when all of a sudden you’ve arrived in country. Except you’re actually still in Melbourne because the official boundary of the metropolitan area lies on the other (eastern) side of Warburton!

People seem to like a hard edge – a clear and unambiguous boundary – between city and country. But it only works if the non-developed land is “pure” bush or bucolic farming land, without service stations, hobby farms or other urban detritus. Head out of Melbourne in most other directions and development – almost all of it tacky and ugly – tracks you like a mangy dog.

The continuous built-up area of Melbourne (the pink bit in the middle of the map) occupies less than 2,000 km2. This is much less than is commonly assumed by the media and is just a little more than a quarter of the area covered by the official or administrative boundary, which is 7,672 km2. There are a number of “islands” of development within the boundary (also shown in pink), like the townships of Melton and Sunbury, that are officially part of the metropolitan area but separated from “mainland Melbourne” by green wedges. It makes sense to count a place like Melton township as part of Melbourne because 65% of workers living there travel across 9 km of green wedge to work in mainland Melbourne.

These islands make discussions about sprawl particularly fraught. Is it just the central core of continuous urbanised development that sprawls or should all the islands within the boundary also be included? If they are, then that not only includes towns such as Melton, Sunbury and Pakenham, but also towns like Warburton, Healesville and Gembrook that appear to the first-time visitor to be country towns. And given that island townships like Garfield and Bunyip in the outer south-east corridor are officially part of Melbourne, it’s reasonable to wonder why towns that lie just outside the boundary, like Drouin and Warragul, aren’t also seen as part of Melbourne’s sprawl.

This story from a 2003 issue of The Age shows how closely linked many country towns located outside the boundary are to Melbourne:

Census 2001 figures cited by a Monash University Centre for Population and Urban Research report for the Southern Catchments Forum show that, remarkably, more than half of the working residents of the Macedon Ranges area are employed in Melbourne. Similarly, about 40 per cent of the working residents of the Moorabool region (which includes Bacchus Marsh) and the Melbourne side of the Greater Geelong area commute to Melbourne for work. It’s clear, the report says, that these areas are “largely dormitory towns servicing the metropolis. Read the rest of this entry »


Are apartments the answer to ‘McMansions’?

Annual per capita greenhouse gas emissions for the alternative housing scenarios

Demonising sprawl seems to be the mission of many planners, academics and journalists, but oftentimes zealotry leads to mistakes, as with this claim that infrastructure costs on the fringe are double those in established suburbs. I’m reminded again how easy it is to get the wrong end of the stick on this issue by a study released last week by the Architecture Faculty at Melbourne University.

The University’s media release tells us the study found “houses on Melbourne’s suburban fringe are responsible for drastically higher levels of greenhouse gas emissions compared to higher density housing or apartments in the inner city”. The Age ran with the media release, reporting that bigger dwellings and more car-based travel are the key reasons fringe houses consume more energy and emit more greenhouse gas than apartments.

I can’t refer you to a full copy of the study because the University didn’t make it available to the media or the public. That didn’t seem to worry The Age, but I think it’s an extraordinary decision – does the University exist to issue media releases or to undertake serious research? I contacted one of the authors who told me the study is a journal article and he couldn’t give it to me for copyright reasons. He gave me this link to the abstract. I’ve read the full article but if you don’t have on-line access you’ll have to spring for €35 if you want to read it.

A key part of the study is a comparison of the (embodied, operating and transport) energy consumption and greenhouse gas emissions of households in three building types – a 100 m2 two bedroom high-rise apartment in Docklands 2 km from the city centre; a 64 m2 two bedroom suburban apartment 4 km from the centre in Windsor; and a 238 m2 detached house in an outer suburban greenfield development 37 km from the centre (the latter is shown in the accompanying chart in two versions – a 2008 five star and a “future” seven star energy rated version).

I don’t know what the point of this sort of comparison is. Putting transport aside (you’ll see why later), there’s little policy value in comparing a $1 million plus Docklands apartment with a $500,000 plus suburban apartment in Windsor, much less comparing both with a $350,000 house and land package on the urban fringe (and I’d say Windsor is inner city!). Nor does a seven square two bedroom apartment seem like a practical substitute for the sort of household that buys a 26 square four bedroom house.

A better approach would’ve been to compare the greenfield house against a townhouse of similar value located in the established suburbs, say 20 km or more from the centre (or perhaps against a greenfield townhouse set within a walkable neighbourhood). Alternatively, the authors could have followed the ACF’s lead and compared the resource use of all suburban residents with those of inner city residents – but the catch here is the ACF found that, even though on average they live in smaller dwellings, inner city residents have a higher ecological footprint (see here and here)!

The study should be on firmer ground when it compares transport energy and emissions across the three locations, but it isn’t. The trouble is the study gets it completely wrong on this key variable and, frankly, the travel findings just don’t stand up. There are two key weaknesses. Read the rest of this entry »


Is living at density the same everywhere?

A reader, Ian Woodcock, took me to task yesterday about my post on whether outer suburban families would willingly choose densities of 25-30 dwellings/Ha so they could walk to local shops and services.

In particular, Ian reckons I invoked a straw man when I argued that “it can’t be assumed that merely increasing outer suburban housing density will create an environment with the ‘buzz’ and ambience of a St Kilda or Fitzroy”. He says the relevant comparison:

is not with inner-suburbs like St. Kilda that have the highest density in Australia (!), but with the streetcar (tram) suburbs of the inner-middle ring, like Kew, Camberwell, Malvern, Armadale, etc. where densities are higher than the outer suburbs in many places, public transport is good, there is housing diversity and access to a wide range of shops and services, and moreover, social capital is high.

Ian’s broadened the discussion beyond walkability to the merits of density more generally. I’m not sure there are substantial parts of suburbs like Camberwell with average densities as high as 25-30 dwellings/Ha, but nevertheless I’m happy to make the comparison with them. I’ve set out my argument about the attractiveness of higher densities to Growth Area residents below:

My contention is that living in a townhouse or apartment in the inner or middle suburbs – whether it be St Kilda, Kew, Fitzroy or Camberwell – delivers an entirely different set of benefits than it would in the outer suburbs. In essence, it’s worth choosing to live in a town house in the former but not at present in the latter.

Camberwell residents who can afford it generally choose to live in bigger dwellings, usually a detached house with a yard. The rest live in smaller dwellings like newish apartments and townhouses because that’s the only way they can afford to live there. They want to live in Camberwell for all the usual reasons – it’s close to the city centre, close to large centres like Glenferrie Rd and close to private schools. They also like it for the status it confers and because it’s ‘people like us’ i.e. wealthy or aspiring to be wealthy.  As Ian says, it also has good public transport and a wide range of services. But most of those who live in apartments and town houses do so because they have to – it’s primarily about location, not dwelling type.

Some will argue there are people who could easily afford a big dwelling but actively prefer a small one. Undoubtedly there are some, but there aren’t many and they’re not usually families (who’re the main household type in the Growth Areas). The fact that empty nesters tend to hang on to their large houses signals that, if they can afford it, people put a high value on space. People who can afford it don’t buy studios or one bedroom apartments in Docklands or Southbank – they buy three bedroom units and penthouses. All those renovated and extended terraces and houses in the inner city don’t say “small is better”. Location and dwelling size are what economists call superior goods. As incomes rise, consumers tend to buy more of them – they might move to a better suburb or a bigger dwelling (although only the very rich can usually do both).

Now compare Camberwell to the Growth Areas. In the latter a detached house with a garden costs much the same as a townhouse. Households don’t need to forego space in order to live there, so why would they choose to buy a townhouse? Read the rest of this entry »


– Are outer suburbs dense enough to walk?

Google's new Driverless Car Technology massively increases intersection capacity

This story in The Age says average dwelling densities in the fringe Growth Areas need to double to make walking to local shops and services viable.

It’s based on a report, Shall We Dense? (geddit?), which says the current minimum average density of 15 dwellings/Ha in the Growth Areas only yields about 510 dwellings within walking distance of local shops and services. Density needs to increase to 25-30 dwellings/Ha to provide enough residents – about 3,000 – to make local shops within walking distance viable.

I’ve said before that the downsides of sprawl are exaggerated, however if new residents of outer suburbs freely choose to live at higher densities and thereby consume less space, that’s got to be a positive step. The problem, as I touched on here, is finding the magic factor that might induce such a shift in preferences.

I don’t think that factor is being able to walk to shops. I can’t see that home buyers in the Growth Areas would actually choose to forego a big detached house and garden in order to buy, for much the same price, a considerably smaller townhouse or apartment so they could be within walking distance of a local shop or two.

I guess that really depends on what the local shops offer. But this is the outer suburbs – it isn’t Tales of the City or The Secret Life of Us. It can’t be assumed that merely increasing outer suburban housing density will create an environment with the ‘buzz’ and ambience of a St Kilda or Fitzroy. The relatively high density of activities in the inner city is sustained to a considerable degree by young, high income professionals without dependents who support all those restaurants, galleries, coffee bars and specialty services. They aren’t there by accident either – they live there because it’s close to the CBD and all those high-flying jobs and cultural, leisure and entertainment attractions. They’re prepared to downsize to get it.

The average outer suburban resident, in contrast, is likely to be married, have children, a big mortgage and limited disposable income. It’s another thing entirely for a family in the outer suburbs to downsize in order to live within walking distance of a small and expensive grocery store, perhaps with the choice of a coffee shop or a restaurant. Something this local is simply not going to have anything like the sheer number and diversity of people and outlets seen in inner city locations.  Read the rest of this entry »


Who’s buying homes on the fringe?

Importance of proximity to......(%)

If you think that home buyers in the fringe Growth Area LGAs are predominantly young renters buying their first McMansion, then think again.

A survey released today by property consultants Oliver Hulme profiles home buyers in the Growth Areas LGAs i.e. Wyndham, Melton, Hume, Whittlesea, Casey and Cardinia.

Given the brouhaha in The Age today over foreign investment on the fringe, the media might give attention to the finding that 23% of purchasers in these areas are investors. However it is not possible to deduce from the report how many of them live overseas.

But there are plenty of other interesting nuggets of information.

Rather than moving out of rental accommodation and into their first home, most fringe purchasers already own a house. Only 36% are first home buyers. Of the 64% who are ‘upgrading’ from an existing owner-occupied dwelling, a third are buying their third or fourth home.

It is therefore no surprise that the average buyer is not ‘starting out’ on the great suburban journey. Nearly half (48%) of adult buyers are aged 35 years or more. In fact 14% are aged 50 or more.

And while some bought large houses, almost three quarters (74%) purchased a single level dwelling. Moreover, 70% of homes are less than 30 squares and 47% are less than 26 squares. That suggests the great bulk of dwellings are roomy but they’re hardly McMansions. However, small dwellings don’t cut it – even though 12% of buyers are single, only 1% of dwellings are smaller than 15 squares.

Read the rest of this entry »


Is Melbourne 2030 achieving its objectives on housing?

Percentage of new dwelling construction within 1km of a principal or major activity centre

A new research paper suggests that many of Melbourne 2030’s key ambitions in relation to housing have come to nought.

The paper, Planning and the characteristics of housing supply in Melbourne, was written by Dr Robin Goodman and a team of fellow academics from the RMIT Research Centre and published by the Australian Housing and Urban Research Institute (AHURI).

The first part of the project analysed a number of data bases on land transactions over the period from 1990 to 2007.

Contrary to the aspiration of Melbourne 2030, the researchers found that the proportion of new housing located within one kilometre of an activity centre did not increase following the promulgation of the Strategy.

In fact activity centres are not generally a favoured location for new housing. Of the 115 studied, just four account for almost a third of all housing built within one kilometre. Those four are all very close to the city centre – South Melbourne, Melbourne (CBD), Port Melbourne (Bay St) and Carlton (Lygon St). The ten with the highest proportion of new housing were either close to the CBD or in new parts of Growth Areas where developable land was still available close to activity centres.

When the radius is extended to two kilometres, the researchers found that the proportion of new housing actually declined since Melbourne 2030 was released.

They found a similar pattern with rail stations – the proportion of dwellings built within a one kilometre radius of a train station declined after Melbourne 2030 came into effect.

In addition, the delay between acquisition of property by a developer and completion of construction is more protracted on parcels that are closer to activity centres. Read the rest of this entry »


What’s good about the Coalition’s planning policy?

What Americans think 'family' means

I think some aspects of the Victorian Opposition’s clumsily titled Plan for Planning are doubtful, especially their proposal for ensuring 25 years land supply within Growth Areas and their intention of levying the Growth Areas Infrastructure Charge at the time of development.

But there are also some good ideas that I want to discuss, notably the proposal for a new strategic plan for Melbourne and another for an audit of the infrastructure capacity of the entire metropolitan area.

A new plan for Melbourne would be timely because Melbourne 2030 is misguided, old and tired. It’s been more than ten years since the process of preparing the metropolitan strategy began and eight years since it was published.

A key problem with Melbourne 2030 is that it was misconceived from the get-go. It never worked properly and simply hasn’t delivered on its lofty ambitions.

Its relevance took a serious hit when the projections of future population growth that underpinned its policies were revised upwards. Further, one of its main directions – the primacy of the CBD – was weakened in 2008 when the Government decided to establish six new CBD-type Central Activities Districts in the suburbs.

The objective of locating nearly 70% of all dwelling commencements out to 2030 within the existing suburbs – rising to almost 80% by 2030 – was also abandoned in 2008 and replaced with the much less challenging target of just 53%.

And of course the much vaunted Urban Growth Boundary lasted only a few years before it was breached. The supply of well-located affordable housing that the plan was intended to foster dried up and neither jobs nor housing gravitated to suburban centres on anything like the scale originally envisaged.

The problem with Melbourne 2030 is that it was driven from the outset by ideological posturing rather than logic. Too many of its key directions weren’t supported by data or analysis and the consultation process was largely a sham. Read the rest of this entry »


Do fringe dwellers want density?

150 m2 house on 294 m2 lot at Craigieburn

The benefits of residential density are more complex than they appear. The attractions of living cheek by jowl in places like Surfers Paradise or the CBD may not apply everywhere, especially on the fringes of our major cities.

Almost everyone knows, it seems, that density has enormous benefits. It is correlated with lower levels of car ownership, fewer kilometres driven and higher public transport use. It lowers infrastructure costs and is also associated with lower consumption of energy and water. According to some, it’s even connected with higher levels of social capital and lower rates of obesity.

However most of the benefits – both private and social – do not derive from density per se but rather from location. Lots of people want to live in high amenity places like the beachfront or in proximity to the jobs, entertainment opportunities and transport infrastructure of somewhere like the city centre. These sorts of places are in short supply so demand can only be met by increasing density.

Higher density necessarily means less land per dwelling but it doesn’t inevitably mean smaller dwellings. However unless you’re filthy rich, one of the compromises you will have to make to capitalise on a sought-after location is a smaller dwelling. The 350 m2 McMansion on the fringe might at best be a 140 m2 three bedroom unit on the top of Doncaster Hill or an 80 m2 two bedroom unit in Docklands.

The point is that many of the social benefits associated with density – like higher public transport use and lower car ownership – are a function of the location, not the dwelling type. In turn, lower energy and water use is not primarily a direct function of density but rather a result of their smaller size.

This might seem self-evident or even a distinction of no more than academic interest. But as I’ve argued before, the failure to fully understand what density is, can lead to bad policy. It is also a particularly pertinent point in the context of advocating higher densities in places like fringe Growth Areas.

Read the rest of this entry »


Why are outer suburban houses so damn big?

The economics of Seinfeld (click)

Everyone knows that Australians build the largest new houses in the world. According to the Deputy Governor of the Reserve Bank, real expenditure on each new dwelling is now 60% higher than it was 15 years ago.

Just why we need 85 m2 per person, on average, in our new suburban houses is an interesting question, especially given that the average household size in Australia has fallen.

As with most things, it’s the coincidence of a number of factors that provide the most plausible explanation, but in my view the key reason is that Australians increasingly see the purchase of a dwelling as an investment decision.

There was a time when buying a house was solely about consumption – i.e. shelter – but now it’s received wisdom that houses inexorably increase in price. They provide growing equity to borrow against in the future and capital to draw against if the unthinkable should happen.

Recent history has convinced home buyers that residential property is a good, even spectacular, investment. This reflects factors such as its tax-sheltered status, restrictions on supply, low interest rates and Federal and State home buyer assistance schemes.

From the perspective of many home buyers, a bigger house not only provides more consumption value but is seen as a sound long-term investment decision. Unlike a car, which depreciates in value, buyers assume every dollar spent on a house ultimately increases in value. A bigger house might even appreciate in value faster than a smaller house. Read the rest of this entry »


Do higher travel costs make the fringe unaffordable?

The new art of Cartosimpsonology

A common argument is that households who settle on the fringe because housing is more affordable end up worse off because of higher transport costs. They are forced to buy a second or third car and they use more petrol because they have to travel further.

Of course there’s an assumption here – that ordinary families actually could find a suitable dwelling, at an affordable price, in an area where transport costs are significantly lower than they would be on the fringe.

Consider the municipalities of Casey and Cardinia, which together comprise the largest Growth Area in Melbourne. At around 45 km and 55 km respectively from the CBD they are also the most distant fringe growth areas.

The median price of an established house and garden in Casey (Narre Warren) is $350,000. Now compare that with the City of Monash, which stretches between 13 km and 24 km from the CBD. The median price for a house in this municipality is $780,000 (although in Clayton it’s $618,000).

A more likely alternative for a settler in Monash who’s primary concern is affordability would be a unit. However the median price for a unit is $464,000 ($401,000 in Clayton).

Thus the Growth Area has a considerable advantage in price and size – it’s much cheaper and offers a three to four bedroom house with a garden compared to a two bedroom unit. Clearly a Monash location would need to offer a considerable saving in transport costs to offset Casey/Cardinia’s advantages. Read the rest of this entry »


Should most redevelopment be in activity centres?

Maribyrnong Rd, before redevelopment and after (from Transforming Melbourne)

I noted yesterday that Melbourne @ 5 Million envisages just over half of all new dwellings constructed between now and 2030 – about 16,000 per year – will be located within the built-up area. The rest will be built in the fringe Growth Areas.

This is a significant reduction compared to the 69% share Melbourne 2030 envisaged would be built within established areas over 2001 to 2030.

My view is that the disadvantages of sprawl are routinely exaggerated and the fringe will necessarily be an important location for some of the expected future growth.

But I think home buyers’ preference for the outer suburbs is also commonly exaggerated. I expect many fringe settlers would prefer a location closer to the centre if only the market could deliver a better space/price compromise.

I think one of the reasons they can’t find that compromise could be the Government’s policy of prioritising redevelopment to strategic locations, like activity centres and along main transport routes. Read the rest of this entry »


How much growth is going to the fringe?

Flight & Expulsion - Shows where refugees to Australia came from in 2008. Click map to see all countries, by year, back to 1988.

The Victorian Government set a target in its 2002 strategic plan, Melbourne 2030, that only 31% of new dwellings constructed between 2001 and 2030 would be located on outer suburban greenfield sites.

In fact, it envisaged that by 2030, the proportion would have fallen to just 22%.

This ambitious target reflected the conviction at the time that continued outward growth was unsustainable. The firm view was that a much higher proportion of growth would need to be accommodated within the existing built-up area.

The subsequent update released in 2008, Melbourne @ 5 Million, significantly downgraded the target.

Melbourne @ 5 Million “anticipated” that 47% of all new dwellings constructed over the next 20 years would be located in the fringe Growth Areas.

The new target simply reflected what the market was actually doing. There would be little danger now of getting caught out by a politically ambitious “stretch target”.

The most recent edition of the Government’s Residential Land Bulletin (March Qtr, 2010) indicates how prescient the authors of Melbourne @ 5 Million were. It shows that exactly 47% of dwelling approvals in the preceding twelve months were located in the Growth Areas.

But if you think we need less development in the outer suburbs and more in the inner and middle ring suburbs, it gets worse. Read the rest of this entry »


Are the new suburban ‘supercentres’ attracting residents?

Number of new dwellings by major suburban activity centre, Melbourne

The credibility of the six new suburban ‘supercentres’ announced by the Victorian Government in October 2008 has been undermined by a recent Government report on land supply.

The Government announced in October 2008 that it was upgrading six existing suburban Principal Activity Centres (PAC) to Central Activities District (CAD) status. The CADs are a new top-level category of centre intended to provide “significant CBD-type jobs and services” in the suburbs.

Described as “mini CBDs” by The Age and envisaged to have a mix of business, residential and civic uses, the six designated CADs are Broadmeadows, Box Hill, Dandenong, Footscray, Frankston and Ringwood.

I’ve previously pointed out there’s little evidence that any “science” was applied to the selection of the CADs. It seems the Government picked six centres under the existing Transit Cities Program and designated them as CADs.

They do not appear to be natural centres of commerce or industry. Only one of the six CADs (Box Hill) ranks among the nine largest suburban centres in terms of job numbers.

Now the 2009 Annual Report on the Urban Development Program issued earlier this year by the planning department shows that the CADs aren’t the preferred location of residents or developers, either. The accompanying graph indicates the number of dwellings recently built, under construction, or planned, in major suburban activity centres. Read the rest of this entry »


Is suburban sprawl a threat to farming?

One of the oldest processes in urban development is the conversion of peripheral land from farming to residential use. The standard argument is highest and best use: housing gives a bigger pay-off than farming. It’s the same basic logic underlying why natural bushland is cleared for agricultural use.

On Monday I looked at the idea of “food kilometres” but today I want to look at whether productive agricultural land should be converted to urban use.

Straight up, the evidence suggests urban development doesn’t pose much threat at all. The productivity of agriculture in Australia has increased 2.8% p.a. over the last 20 years, double the rate at which the wider market economy has grown.

Moreover, the Australian Natural Resources Atlas shows that the area of land used nationally for urban development amounts to just 0.5% of the area of land used for agriculture. Another estimate by the Australian Collaborative Land Use Mapping Program puts the ratio of urban land to agricultural land at 2.8%.

A more detailed study by Peter Houston published in 2005 found that agricultural land on Melbourne’s urban periphery comprised a little less than 6% of the total land base used for agriculture in Victoria. Melbourne seems to be an exception – the average figure for peri-urban areas across all mainland States is a mere 1%. Read the rest of this entry »


How dense are Melbourne’s outer suburbs?

Kenneth Davidson claimed in The Age yesterday that Melbourne has 15 years’ supply of outer suburban land zoned for urban development at the world’s lowest residential densities of 12.5 to 15 houses per hectare.

Lowest in the world? I think that’s possibly a little harsh when Melbourne is compared with the outer suburbs of US cities. However what I’m really interested in looking at is what Melbourne’s supposed “lowest residential densities” actually look like. What does 15 dwellings per hectare mean on the ground?

An ideal case study is the new mixed use development planned for Toolern, near Melton. According to the Precinct Structure Plan, when fully developed it is expected to cover 24 sq km, house an estimated 55,000 residents and host businesses that provide 28,000 jobs.

This is an enormous project, covering an area around a fifth larger than the entire inner city municipality of Yarra. It is equivalent in area to a 2.8-kilometre radius circle – if the centre were Melbourne Town Hall, it would extend to Richmond Station in the east, Alexandra Parade in the north, Bolte Bridge in the west and Albert Park in the south.

The minimum average density set down for Toolern is 15 dwellings (per net developable hectare), the same as the target minimum for the growth areas set out in Melbourne @ 5 Million and its predecessor, Melbourne 2030. Read the rest of this entry »


Is local food more sustainable?

One argument against suburban sprawl is that it sterilises agricultural land. A particular variation on this contention is that land should be preserved for agriculture so that carbon emissions in transporting food from farm gate to plate – “food kilometres” – can be minimised.

A frequently cited estimate is that food in the US travels on average 2,400 km from where it is produced to where it sold to consumers. We should therefore seek to grow as wide a range of food as possible as close to Melbourne as possible.

From Weber and Mathews, Food Miles and the Relative Climate Impacts of Food Choices in the US

All things being equal that makes sense. But of course it’s never that simple. Here are some pertinent issues to consider.

First, transport is not a major component of the total carbon emissions from agriculture. These researchers estimate that on-farm production accounts for 83% of the average US household’s carbon emissions from food whereas delivery from producer to retail outlets accounts for just 4%.

Second, most food can’t be grown locally without resorting to potentially environmentally damaging practices like excessive application of fertiliser, irrigation or artificial heating of greenhouses. This article cites a British study which found that because British tomatoes are grown in heated greenhouses, they emit 2.4 metric tons of carbon dioxide per ton grown whereas Spanish tomatoes emit 0.6 tons. Further:

Another study found that cold storage of British apples produced more carbon dioxide than shipping New Zealand apples by sea to London. In addition, U.K. dairy farmers use twice as much energy to produce a metric ton of milk solids than do New Zealand farmers. Read the rest of this entry »


Are new outer suburban homes getting smaller?

There was a flurry of almost salacious excitement in the media at the end of last year when an ABS study found that Australians have the largest homes in the world. Worse, it found Victorians have the biggest homes in the country.

The Age reported that houses and apartments in Australia are bigger than those in the United States, which has traditionally had the most spacious homes:

“While Australian home sizes have risen 10 per cent over the past decade, research shows sizes of new American homes have fallen from a peak of 212 square metres to 201.5 square metres”.

Now property group Oliver Hume has thrown some new light on home sizes in Melbourne. They say that excluding Melbourne’s west, the median size of homes in the other five growth areas actually fell slightly over the last three years.

The largest absolute fall was in Cardinia, where the median home size fell from 267 sq m to 209 sq m, or by 57 sq m. Home sizes also fell in Casey, Hume and Whittlesea but increased in Wyndham and Melton. This does not, however, indicate an across-the-board change in preferences toward smaller houses.

According to Oliver Hume’s research manager, Mr Andrew Perkins, much of the drop in house size can be attributed to the increase in the number of first home buyers in the 2007-2008 period, when they accounted for an unprecedented 70% of all sales across the growth areas. Read the rest of this entry »


Is the urban fringe getting bigger?

The proportion of new dwelling commencements planned for the outer suburban growth areas increased sharply between the release of Melbourne 2030 in 2003 and the release of the revised strategy, Melbourne @ 5 Million, in October 2008.

Melbourne 2030 envisaged 31% of dwelling starts would be located in the growth areas over the period to 2030 (page 30). It expected virtually all the rest would be located within the established suburbs, either clustered around major activity centres or dispersed across the suburbs.

Residential forecasts by region, Melbourne 2030 (click to enlarge)

The subsequent update, Melbourne @ 5 Million, made a dramatic change. It increased the proportion of dwellings expected to be constructed in outer suburban growth areas to 47% – half as much again as envisaged by Melbourne 2030 (page 3).

This change was consistent with the reality of what was happening in the market.

The authors of Melbourne 2030 probably felt at the time that 31% was a reasonable “stretch” target. Over the four years from 96/97 to 00/01, only 38% of new commencements were in the growth areas.

However four years is a short period to use as a basis for policy. As it happened this was a relatively quiet period compared to the boom that followed. Read the rest of this entry »


Are lots smaller in the outer suburbs than in the inner suburbs?

The Financial Review (paywalled) reported on Saturday that the average house sold within 10 km of the CBD in Melbourne is located on a 511 m2 block, according to data collected by property information provider, RP Data.

Central Green, Highlands, Craigieburn - some lots are 213 sq m (click to enlarge)

Of course there is considerable variation in property types within that average. Houses in the inner city (0-5 km) are predominantly terraces on small lots whereas those in the inner suburbs (5-10 km) are predominantly detached houses on larger lots.

However what is especially interesting about this statistic is how it compares with the outer suburbs. The median size of lots sold in the Growth Areas is currently 513 m2, according to property consultants, Oliver Hume.

In other words, the average lot size is much the same in the two areas.

This is surprising, but a number of caveats are in order. First, some of the properties closer to the CBD would be destined for redevelopment whereas that seems unlikely in the Growth Areas. Read the rest of this entry »