Sydney leads medium density housing approvals

83Medium density housing is becoming increasingly popular in Australia, according to Bankwest’s Housing Density Report, released on February 17.

This type of housing has been more sought-after compared to stand alone homes, capturing 43.4 per cent of home approvals in the year to October 2013.

This is an increase from five years ago, when just under one in three (33.1 per cent) of approvals were for medium density dwellings.

Popularity in hot Sydney market

Sydney investors and buyers may wish to pay attention to this activity, as it appears capital cities are leading the pack when it comes to this trend.

Approvals for this dwelling type were strongest in capital cities, which represented 87.1 per cent of total approvals from October 2012 to October 2013.

Inner-city Sydney has seen the greatest proportion of medium density home approvals over the past two years, alongside Melbourne and Brisbane, according to the report.

Medium density homes include units, semi-detached dwellings and townhouses.

NSW a medium density leader

“Medium density housing approvals have increased at a much higher rate” than stand-alone home approvals, according to the report.

Over the last 12 months, medium density housing has increased by 22.9 per cent. In the past five years, approvals have soared by 45.9 per cent.

NSW is now a leader in this trend, too.

In the year to October 2013, NSW made 25,262 housing approvals, which is the largest number in the country.

NSW approvals represented 34 per cent of the whole of Australia, knocking Victoria off its previous leading spot for medium density home approvals.

This also represents a neat 34 per cent increase in approvals from the previous year for NSW. Of the state’s total approvals, 56.4 per cent were for medium density housing, indicating that these types of dwellings are more and more popular for both buyers and investors.

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