Demand for Medium-Density Housing Reaches Record Highs

February 25th, 2014

A new study by Bankwest has shown that Australia’s demand for medium-density housing has reached record levels. In the past year, market demand for property in this category – that’s units, townhouses, and semi-detached housing – rose steadily.

The Bankwest study showed that new home approvals for this category were up, reflecting the high levels of demand. Around 43% of new home approvals were for medium-density homes, up from 39.8% in the previous 12-month period.

Over a period of five years, approvals for medium-density homes grew by 45.9%. And in contrast, approvals for detached housing dropped by 8.5%.

According to Mark Reid, Bankwest’s executive general manager, the market is demonstrating a preference for medium-density housing over detached residential properties because populations were concentrating around major cities and opting for smaller properties. Reid suggested that their affordability was also a reason for the trend.

The study found that Perth was the only capital city that did not evidence the same trend toward growth in medium-density approvals. According to Reid, this can be explained by the lower price gap between detached houses and units in the Western-Australian capital.