Australia is undergoing significant changes, with a growing population and expanding cities. The transformation of our suburbs is inevitable, but how will they change? In the future, today’s outer suburbs, such as Tarneit, Officer, and Marsden Park, will become the middle suburbs, just like Doncaster and Ryde did in the past. Millennials who are moving to the urban fringes today will shape these areas into mature, established suburbs over time.
Unlike European cities, Australia lacks medium-density housing. We have a model that jumps from high-rise apartments to detached homes, with very little in between. This is due to the opposition from NIMBYs (Not In My Backyard activists) in middle suburbs who resist new development. As a result, cities are forced to sprawl outward, leading to congestion and increased infrastructure costs.
Recognizing that local councils won’t solve the housing crisis, state governments in Victoria and New South Wales are stepping in to fast-track developments. They are bypassing council objections and directing where and how new housing should be built. Incentives and extra funding are being provided to councils that meet their housing targets, but financial penalties and administrative takeovers are also being considered for councils that refuse growth.
One of the challenges in Australia is the lag between housing development and infrastructure. We often build houses first and then struggle to add schools, hospitals, and public transport later. To avoid this inefficiency, it is crucial to plan for future infrastructure needs. Securing land corridors now for projects like high-speed rail will prevent costly fixes in the future.
As Australia’s population is expected to double in the next 70-80 years, new growth hubs like Newcastle, Wollongong, and Geelong will need to triple or quadruple in size. These cities will become major urban centers in their own right. To ensure their success, they should be built with transport links, walkable communities, and medium-density housing.
For property investors, it is important to consider the long-term trends. Outer suburbs will eventually become prime real estate, and state governments will continue to override council objections to allow more housing. Suburbs near future transport upgrades and planned amenities will also benefit. NIMBY resistance won’t last forever, as younger generations push for change. Finally, it’s essential to look beyond Sydney and Melbourne and consider regional cities as growth hotspots.
In conclusion, change is inevitable, and our cities will look very different in the future. By anticipating these trends and investing wisely, investors can benefit from the transformation of our suburbs. So, embrace the future and be prepared for the opportunities it brings.
