Sydney and Melbourne share a healthy rivalry in sport and culture, and a booming rate of population growth. But what about the state of construction in Australia’s two largest cities?
Below we explore how population trends will impact the future of residential and commercial construction in Sydney and Melbourne.
It’s a two-horse race for Australia’s biggest city. Sydney continues to experience solid growth in residential property projects, with forecasts showing a strong market in the years ahead. Logically, population growth means rising demand, and Sydney has that in spades. According to .id The Population Experts, the municipality of Camden in Sydney’s south-west saw Australia’s fastest population growth in 2014-2015 - at a rate of 7.6%.
“It’s often recorded the fastest growth rate in Sydney, but the rate and volume has increased considerably in the last couple of years,” says Simone Alexander of .id.
“There are numerous development fronts in Camden as evidenced by the rapid growth of new housing estates in Gregory Hills, Oran Park and Spring Farm. There is considerable scope for future residential development across the northern part of the municipality well into the future,” she says.
With a population of roughly 400,000 fewer people than Sydney, Melbourne is Australia’s second largest city. However, according to Glenn Capuano of .id, if current growth rates stay the same it will overtake Sydney by 2046.
“In the last 10 years, Melbourne has added 832,124 people, while Sydney has added 703,407 people. Both cities had a growth rate above the national average in 2014-2015, but Melbourne’s was 2.1% and Sydney’s 1.7%,” he says.
In addition to their similar population growth, construction trends in Sydney and Melbourne follow a similar trend in residential development. Melbourne has consistently demonstrated high growth in fringe suburbs in particular, while Sydney shows high growth evenly across fringe areas and established suburbs. According to Simone Alexander, Sydney’s growth pattern reflects a strong trend in apartment building.
Similarly, The Australian Financial Review reports that there are 20,000 residential properties currently under construction in Melbourne, with more than 10,000 within the CBD.
Melbourne’s residential high-rise boom in the inner city has left little room for commercial projects. There are concerns this residential construction boom will fail to accommodate for the city’s expected employment growth.
A similar scenario is playing out in Sydney, where there are plans to restrict residential apartment development in favour of commercial projects.
The green building movement is in full flight in both cities. The famous ‘vertical garden’ at Sydney’s Central Park development is the highest in the world. Green roofs and living walls that reflect solar radiation, insular and improve air quality have become popular examples of eco-friendly construction.
In Melbourne, the proposed 60-storey Sol Invictus residential skyscraper will be wrapped in solar cells to provide residents with off-the-grid power.
For more examples of how eco-friendly construction is transforming Australia’s building industry, download your free eBook by clicking below:
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