The cost of building family-friendly apartments in Melbourne’s inner and middle ring suburbs is pushing young families to buy houses in Hume and Whittlesea.
A new report from the Australian Population Research Institute on the housing affordability crisis in Melbourne and Sydney argues that the cost of building high density residential complexes is so great developers can’t build suitable apartments for young families at an affordable price.
According to the institute’s research, an 80-square metre apartment in a five-storey block costs between $7000 and $8000 per square metre to get to market.
“This means a [purchase] price of at least $600,000. Few young households can afford this,” the report states. “As a result, hardly any family-friendly apartments are being built in either Sydney or Melbourne.”
Report authors Dr Bob Birrell and David McCloskey said this has led to a glut of small apartments and a shortage of affordable, detached housing big enough to raise a family.
“The outcome is that most households looking for an affordable family-friendly dwelling have had to move to the outer suburbs or new estates on the fringe.
“They can still find detached housing in the outer suburbs of Melbourne, like Frankston and Hume for around $400,000. They can also purchase a detached house for around $300,000 on fringe estates, if they are willing to accept a small 150-square metre house on a sub-400 square metre block.”
Samantha and John Cacchione were the first residents to move into Merrifield Estate, one of the largest residential developments, currently under construction in Mickleham.
Mrs Cacchione, whose first child is three months old, said the couple moved to Mickleham from Epping for the larger blocks.
“We had a tiny apartment in Epping; they were all attached, and we both hated it. We were living on top of each other and didn’t have any privacy,” she said.
They wanted at least a 700-square-metre block, and looked at Beveridge and Mickleham before purchasing their 750 square metre block in Merrifield for $240,000 in 2013.
