The Key to Australian Cities' Future Success

Australia's major cities need to focus on planning long-term housing supply around train stations to promote sustainable, dense development, as they compete globally for people and investment. KPMG analysis reveals that Sydney and Melbourne have made progress in developing housing near railway stations in recent years, but they need to intensify their efforts for the future.

Over the past 15 years, nearly half (49%) of the 430,000 new homes in Greater Sydney were built within 1 kilometre of a train station, while in Greater Melbourne, 35% of the 565,000 new homes shared the same proximity. KPMG urban economist Terry Rawnsley emphasizes the importance for policymakers and developers to look beyond the next decade, focusing on the next phase of housing in carefully planned rail precincts.

Rawnsley asserts that Sydney has excelled in developing a polycentric city, thanks to 40-50 years of strong precinct-centered policies, while Melbourne has not followed the same trajectory. He suggests that Melbourne's high-rise development in its CBD and some eastern suburbs supports the need for the Suburban Rail Loop project, which would connect new station areas and foster development patterns similar to those in Sydney's suburban centers. However, Sydney's inner-eastern suburbs have not achieved the same density as Melbourne's inner city, leading to underdevelopment around Oxford Street.

Rawnsley also states that while Brisbane and Perth currently face less urgency for dense development due to their smaller populations, they will need to plan for such development as their populations grow to 3-3.5 million people over the next 20-30 years.

Source: https://www.afr.com/property/residential/the-big-factor-that-could-help-australian-cities-boom-20230419-p5d1jp