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Melbourne’s housing density more extreme than Hong Kong, council says Melbourne’s housing density more extreme than Hong Kong, council says
(2 months later)
Housing density in Melbourne has reached "extreme" levels unheard of even in cities such as Hong Kong, New York and London, a council survey has revealed.Housing density in Melbourne has reached "extreme" levels unheard of even in cities such as Hong Kong, New York and London, a council survey has revealed.
In a grim report card on new housing in the city, Melbourne city council's draft housing policy has found that dwellings in new developments are too small, lack adequate natural light, ventilation and privacy, and are pricing out poor and middle-class families.In a grim report card on new housing in the city, Melbourne city council's draft housing policy has found that dwellings in new developments are too small, lack adequate natural light, ventilation and privacy, and are pricing out poor and middle-class families.
Some new developments had densities greater than 5,000 dwellings per hectare, up to four times the legal limit in Sydney, New York and Hong Kong, and ten times what is permitted in London.Some new developments had densities greater than 5,000 dwellings per hectare, up to four times the legal limit in Sydney, New York and Hong Kong, and ten times what is permitted in London.
About four in ten of Melbourne's newest one-bedroom apartments were smaller than the minimum size allowed in Sydney, Adelaide and London, the council found.About four in ten of Melbourne's newest one-bedroom apartments were smaller than the minimum size allowed in Sydney, Adelaide and London, the council found.
Existing density controls in the city centre are calculated by blocks rather than individual developments, making the guidelines impossible to enforce, it said.Existing density controls in the city centre are calculated by blocks rather than individual developments, making the guidelines impossible to enforce, it said.
The council pinned the blame for shrinking apartment sizes on tax structures that favour investors, who bought 85% of new apartments, over the interests of renters. The council pinned the blame for shrinking apartment sizes on tax structures that favour investors, who bought 85% of new apartments, over the interests of renters.
A 2013 report by the Grattan Institute found that negative gearing rules and capital gains discounts saved property investors nearly $7bn a year.A 2013 report by the Grattan Institute found that negative gearing rules and capital gains discounts saved property investors nearly $7bn a year.
"Private renters, by contrast, receive very little support through the tax and welfare system, even though they make up nearly one in four households," the institute said."Private renters, by contrast, receive very little support through the tax and welfare system, even though they make up nearly one in four households," the institute said.
The council reported that rents in the city had increased at twice the rate of inflation, making the residential population increasingly homogenous in age and income.The council reported that rents in the city had increased at twice the rate of inflation, making the residential population increasingly homogenous in age and income.
"If current market trends continue, virtually all low and many moderate income households will not be able to afford to live in our municipality," it said."If current market trends continue, virtually all low and many moderate income households will not be able to afford to live in our municipality," it said.
Workers such as receptionists, cleaners and hospitality staff were being forced to find housing an hour away from the city, with households on $100,000 a year even feeling the pinch.Workers such as receptionists, cleaners and hospitality staff were being forced to find housing an hour away from the city, with households on $100,000 a year even feeling the pinch.
In response, the council is proposing that 15% of new developments in urban growth areas and the city centre be set aside for affordable housing.In response, the council is proposing that 15% of new developments in urban growth areas and the city centre be set aside for affordable housing.