Australia’s massive offsite construction opportunity revealed in interactive report

Following last week’s national housing crisis discussion, a recent report published covering Australia’s three major cities identified more than 650,000 properties that could accommodate granny flats or accessory dwelling units (ADU’s), with significant opportunities for modular home manufacturers to meet demand. (main pic: Sydney-based builder Evergreen Projects “Yardstix” granny flat built with XLam cross-laminated timber.)

The collaborative research by Archistar, Blackfort, and CoreLogic suggests a considerable unexplored avenue to augment housing availability, where homeowners can utilise an interactive report to determine whether their property meets the criteria for a granny flat (ADU) based on factors like land size, zoning, and regulatory requirements.

CoreLogic’s research chief, Tim Lawless, was surprised by the sheer volume of properties that met the requisite zoning and town planning criteria and were in proximity to public transport facilities. Mr. Lawless stated, “The data underscores a vast developmental potential, which could substantially counteract the housing deficit in our primary urban areas.” He added, “Within the forthcoming five years, there’s an anticipated shortfall of approximately 106,300 residences.”

Though the federal government aims to erect 1.2 million houses in this period, Mr. Lawless pointed out that granny flats (ADU’s) offer a feasible immediate solution. He commented, “While it’s not a definitive solution, it substantially addresses the existing gap.” He continued, “For the government, granny flats are a timely and economical way to amplify housing availability. For homeowners, it’s a chance to supplement their income or accommodate kin, augmenting their property’s worth.”

He estimated that nationally, over a million houses could accommodate a granny flat (ADU).

Offsite construction opportunities identified in the report

• Sydney with approximately 242,000 potential properties for granny flats.
• Melbourne has nearly 230,000 potential sites, which is 13.2% of its total housing inventory.
• Brisbane has close to 185,000 suitable locations, accounting for 23.3% of its metropolitan housing stock.

The financial upside

According to CoreLogic, adding two bedrooms and an extra bathroom could potentially enhance a property’s value by around 32%. For a residence valued at $500,000, introducing a granny flat could increase its worth by an estimated $160,000, with construction costs commencing from about $100,000.

This year, Brisbane City Council unveiled a more efficient procedure for erecting “secondary dwellings” up to 80 square meters. Recently, the ACT government also sanctioned land division for dual-occupancy residences, permitting granny flat-like constructions or even larger structures of 120 square meters. And more recently, the Victorian Government also relaxed it regulatory requirements as well. Read about it HERE.

The study also highlighted that the granny flat (ADU) model benefits retirees and vulnerable homeowners, offering them an opportunity to generate additional income or facilitate live-in care.

Find the interactive report HERE.