Sydney, Oct 17: In a bid to alleviate the housing shortage, Archistar, Blackfort, and CoreLogic have jointly released a report titled “Granny flats: Where are the greatest opportunities for development?”
This report offers valuable insights into the availability of properties suitable for the construction of granny flats across Australia’s three largest capitals: Sydney, Melbourne, and Brisbane.
The analysis employed proprietary AI and data analytics to evaluate every residential block in these cities, determining how many properties had the potential to accommodate self-contained two-bedroom granny flats.
The findings reveal Sydney as the leader in granny flat development opportunities, with approximately 242,000 properties suitable for such construction, accounting for 17.6 percent of the metro region’s housing stock.
Melbourne follows closely with almost 230,000 potential sites, representing 13.2 percent of the housing stock, while Brisbane boasts nearly 185,000 suitable sites, making up 23.3 percent of the metro region.
What’s noteworthy is that over a third (36 percent) of these sites are within two kilometers of a train or light rail station, with 17 percent having a hospital within the suburb boundary.
This combination of accessibility and opportunity provides a fast-track solution for essential workers in the healthcare sector and opens up new housing options.
CoreLogic Research Director Tim Lawless points out the significant potential in addressing the housing shortage with granny flats, given that NHIFC forecasts predict a national undersupply of 106,300 dwellings over the next five years.
He highlights that granny flats offer a cost-effective and immediate solution for policymakers and homeowners alike.
Dr. Benjamin Coorey, co-founder of Archistar, emphasizes the importance of flexible housing solutions in addressing the growing population within these major capitals.
Granny flats, as they leverage existing lot areas and require no changes to town planning regulations, can provide an immediate remedy for housing shortages and affordability concerns.
In Sydney, the Central Coast takes the lead in granny flat development opportunities, while in Melbourne, the Mornington Peninsula presents significant potential.
In Brisbane, Greater Brisbane, and the Brisbane LGA, in particular, offer the most opportunities.
The financial benefits of granny flat development are clear. Adding a granny flat can enhance property value significantly.
According to CoreLogic figures, the addition of two bedrooms and an extra bathroom can increase a property’s value by approximately 32 percent.
Additionally, granny flats provide extra living space for extended families, multi-generational households, or rental purposes, contributing to a property’s overall value and generating additional income.
The report emphasizes that more than a third of the identified sites are conveniently located near essential amenities and services, such as transportation and hospitals, further highlighting their potential as an accessible and cost-effective housing solution.
Read the full report here.
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