Sluggish property market behind dwellings approvals fall

QUEENSLAND communities are being transformed by an increase in medium-density housing, but more slowly than the rest of the country.

In Queensland 43% of existing medium-density homes are outside of Brisbane. Picture: Kevin Farmer

QUEENSLAND communities are being transformed by an increase in medium-density housing, but more slowly than the rest of the country.

The Bankwest Housing Density Report found 31 out of 37 local areas in the state had recorded an increase in the proportion of housing stock that was medium-density.

Across the state, 22% of homes are medium-density, while 31% of building approvals over the last five years were for medium-density housing.

The actual number of dwellings approved over the last five years has fallen, which the report attributed to a sluggish property market.

Bankwest Retail Chief Executive Vittoria Shortt said high property prices had made the Australian dream of a stand-alone house in the suburbs harder to achieve and changing demographics were contributing to the changing property landscape.

"People are increasingly choosing medium-density housing as a more affordable alternative," Ms Shortt said.

"The popularity of medium-density housing will likely be maintained as older Australians continue downsizing to more manageable self-contained units and first-time buyers look to medium-density dwellings as a cost-effective option," she said.

While the report found that during the past 12 months an astonishing 87% of all medium-density dwelling approvals across Australia were in capital cities, in Queensland 43% of existing medium-density homes are outside of Brisbane.

Outside of capital cities, areas with the highest proportion of medium-density housing approvals were predominantly found in tourist and mining areas, with the Gold Coast particularly standing out.

Nationally, the number of medium-density housing approvals has dropped by 6% compared to last year, however compared to five years ago the number of medium-density housing approvals has increased by 18%.

Originally published as Sluggish property market behind dwellings approvals fall