Residz Team 3 min read
Do you own a Sydney, Melbourne, or Brisbane property? Could you squeeze in a granny flat? If so, you may be one of the 655,000 potential sites identified as offering an interesting possible solution to the housing crisis.
Analysis conducted by national town planning research platform Archistar, real estate construction lender Blackfort, and property data and analytics provider CoreLogic identified properties across Australia’s three largest capitals deemed suitable for the construction of granny flats.
According to CoreLogic Research Director Tim Lawless, these findings highlight a significant untapped development potential that could partially remedy the housing shortage in Australia's largest cities.
“NHIFC forecasts indicate the national housing market is likely to be undersupplied to the tune of 106,300 dwellings over the next five years,” he said.
In this context, granny flats emerge as an immediate and cost-effective opportunity for both policy makers and homeowners.
Properties Galore and Close to Public Transport
Sydney tops the list with approximately 242,000 suitable properties, representing 17.6% of the metropolitan region's housing stock. Melbourne follows closely behind with nearly 230,000 potential sites (13.2% of stock), and Brisbane may have 185,000 suitable sites (23.3%) in the metro region.
What's even more promising is that more than a third of these potential sites are within two kilometres of a train or light rail station, and 17% have a hospital within the suburb boundary. This combination of accessibility and opportunity offers a lifeline to essential workers in the healthcare sector, who have long struggled with housing shortages.
Benefits of Granny Flat Development
Granny flats offer a plethora of benefits for both property owners and the community at large:
Immediate Housing Supply: Archistar co-founder Dr Benjamin Coorey says granny flats provide an immediate solution to the housing shortage, leveraging existing lot areas, and allowing for the fast construction of additional housing units within existing town planning guidelines.
Affordability: Dr Coorey says these secondary dwellings can be a cost-effective way to boost housing supply close to existing infrastructure such as railways, bus routes, and major road networks.
Financial Upsides: For property owners and investors, the addition of a granny flat can increase the value of their property significantly. CoreLogic figures suggest that an extra two bedrooms and an additional bathroom could add around 32% to the value of an existing dwelling.
Flexible Living Space: Granny flats accommodate extra living space for extended families, multi-generational households, or rental purposes, providing a versatile solution for various demographics.
Close to Amenities: Many of the identified sites are conveniently located near existing amenities and services, such as transport hubs and hospitals, making them an ideal option for essential workers.
Where Are the Greatest Opportunities?
In Sydney, the Central Coast, Northern Beaches, Hornsby, Blacktown, and Ku-Ring-Gai are the top council regions with the most granny flat development opportunities.
In Melbourne, the Mornington Peninsula, Casey, Monash, Knox, and Manningham lead the way.
Brisbane's hotspots for granny flat development include the Brisbane LGA, Logan, Moreton Bay, Ipswich, and Redland.
Summary
Granny flats present a possible win-win solution to address Australia's housing shortage crisis. They offer immediate relief to a pressing issue, provide financial benefits to property owners, and can offer housing to essential workers and others.
As Australia's population continues to grow, flexible housing solutions like granny flats can play a vital role in ensuring that everyone has access to safe and affordable housing. Perhaps it's time to unlock the potential of these secondary dwellings and build a brighter future for our cities.
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Image: Granny Flats Australia