New analysis of residential properties in Australia has identified more than 655,000 sites across the country that are suitable for the development of granny flats. CoreLogic has described the opportunity to be “offering a solution to help ease the housing shortage.”
In a news release, the property data and analytics provider, alongside national town planning research platform Archistar and real estate construction lender Blackfort, identified Sydney, Melbourne, and Brisbane to have the most number of viable locations for the development of a self-contained two-bedroom unit. Sydney has the most, having over 242,000 suitable properties for a granny flat. Melbourne has almost 230,000 potential sites and Brisbane has almost 185,000 suitable sites.
Thirty-six per cent of these sites are just around two kilometres away from a train or light rail station, while 17% of these have a hospital within the suburb boundary, demonstrating accessibility as well as housing opportunity for healthcare workers.
“For policy makers and government, granny flats present an immediate and cost-effective opportunity to deliver much needed housing supply within existing town planning guidelines,” said Tim Lawless (pictured), research director at CoreLogic. “For homeowners, the addition of a second self-contained dwelling provides an opportunity to provide rental housing or additional accommodation for family members, while at the same time, increasing the value of their property and potentially attaining additional rental income.”
“Since granny flat developments leverage existing lot areas and require no changes to town planning regulation, they offer an immediate opportunity to address housing shortages and affordability pressures expected in the coming five years for both buyers and renters,” said Dr Benjamin Coorey, co-founder of Archistar.
Top suitable sites for a granny flat:
“CoreLogic figures show an extra two bedrooms, and an additional bathroom could add around 32% to the value of an existing dwelling. For a house worth $500,000, the addition of a granny flat has the potential to add approximately $160,000 to the value of the property,” said Lawless.
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