MELBOURNE (15 October 2024) — The Australian Dream of owning a detached home with a yard is very much alive, despite the common fear that most Australian new homebuyers are being forced into apartments, according to Australian Bureau of Statistics data compiled and released today by OpenLot.com.au, the Australian consumer portal for new houses and house builders.
"The dream lives," said Qi Chen, OpenLot.com.au's CEO and founder. "In every state, more houses are built than apartments, units, terraces, townhouses, duplexes, and row houses — combined. The Aussie Dream is not dead. The Dream is very much alive.
"Australians buy twice as many houses as apartments. In August, for example, 9,338 new houses were approved and only 4,418 apartments. In July, 9,287 houses were approved and only 5,293 units.
“You have two driving forces butting heads in the market, the government and the buyers. The government is trying to push developers to build more infill medium-density apartments, but many buyers still prefer to buy a house and land. They are willing to commute and can work from home some days. So, there is constant tension between what the government wants and what buyers prefer.”
State by State Comparison
OpenLot.com.au’s Chen said, “Houses in New South Wales have the smallest advantage over apartments of any major state. In New South Wales, houses make up 54% of new homes. Apartments, terraces, and other types of dwellings make up 46%.
“In Western Australia, new houses outnumber new apartments by a greater percentage than in any other state. New houses account for 87% of new dwellings in Western Australia, with apartments and other types of dwellings accounting for just 13%.
“In Victoria, new houses have a significant lead over apartments, with houses accounting for 64% of all new dwellings. So, apartments, terraces, and duplexes make up just 36% of new homes.
“In Queensland, houses have a big lead over apartments, with 68% of new homebuyers, obtaining a house, and only 32% obtaining an apartment.
“In South Australia, houses far outnumber apartments. New houses account for 78% of all new housing stock, and apartments, terraces, townhouses, and so on make up only 22%.”
A Long-Term Trend
Chen added, "If you look back at the past 25 years, the aggregate number of new apartments, terraces, and other types of homes has only outnumbered new houses a relatively handful of times. That happened in just 18 of the 181 months in the Australian Bureau of Statistics building approvals data.
"During the foreign real estate investment boom of the mid-teens, apartment development soared. Foreign investment drove a boom in new apartments, especially in central Melbourne and Sydney.
"At that time, foreign buyer stamp duties were about half of what they are today, and Chinese capital controls were less stringent. These conditions made it easier for Chinese and other overseas buyers to invest in Australian property. However, governments in both countries soon changed their policies. After foreign buying fell, domestic buyer demand for apartments also remained muted because of lifestyle factors and build quality concerns.
"While apartment approvals remained muted, the house and land market boomed in 2020-21. The number of houses approved in 2021 surged by 39% compared to 2020. That's when the government issued the home builder grant. That's also when you saw people moving out and buying houses because of Covid."
About the Data
This report is based on analysis of new dwelling approval data from The Australian Bureau of Statistics. It tracks new dwelling approvals of all types.
About OpenLot.com.au
OpenLot.com.au is the consumer portal for new housing and house builders, including land, house and land, and townhouses. Visit OpenLot.com.au for more information.
