CEDA proposes subdivision changes to aid housing crisis in Sydney, Melbourne
“But light density can deliver more housing in the middle-ring neighborhoods where people want to live, while making better use of existing infrastructure and transportation networks,” he said.
“We need to make better use of the land, transport and services we already have and give people more choice about where and how they want to live.”
When planning reforms were introduced to Auckland, property values were rising as fast as in Sydney and Melbourne.
CEDA claimed the Auckland changes increased building permits by 50 per cent in five years. Home prices were predicted to be 15 to 27 percent lower than they otherwise would have been.
The report estimates that more than 1,000 strata-titled sites within 15 kilometers of Melbourne’s CBD would deliver an additional 100,000 homes if redeveloped.
The proposal is similar to one suggested by the Grattan Institute last month that three-storey apartments and townhouses could be built anywhere in the nation’s capitals without special planning permission.
It is estimated that Melbourne could build an extra 431,000 homes within 15 kilometers of the city centre, and up to 1 million extra homes could be commercially possible in Sydney.
New infrastructure such as the Melbourne Metro tunnel will be used more efficiently if more homes are allowed to be located near transport hubs.Credit: Chris Hopkins
Adams said the NSW and Victorian governments had already begun to implement reforms but the whole country needed to do much more, starting with planning reforms to allow homes to be built quickly.
“We need a sustained effort and an ongoing ‘if yes’ culture that encourages speed and predictability and gets more people into homes in neighborhoods that are already rich in amenities,” he said.
As well as increasing the number of homes allowed per hectare, CEDA believes state governments should reward councils that meet housing targets and penalize those that fail to meet them.
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The federal government is already offering $500 million to municipalities to help them provide the necessary infrastructure for new homes. Most of this already flows to suburban and regional local governments.
Another $1 billion went to encourage state governments to provide infrastructure or plan reforms that would increase the number of housing projects underway.
The housing boom is expected to soften the real estate market, which is on track to experience a nationwide increase in prices of more than 8 percent for the year.
AMP chief economist Shane Oliver said on Monday the rise in prices was likely to slow in 2026 due to affordability pressures, the possibility of a rise in interest rates and the Australian Prudential Regulation Authority’s plans to tighten lending standards from February.
“While some slowing in population growth and improving housing completions have brought the real estate market into better balance on an annual basis, there is still an accumulated housing deficit caused by inadequate construction over the past few years,” he said.
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