This research paper highlights that the cost to deliver a new apartment in Geelong now far exceeds what most moderate-income households can afford.
Read the full Infill feasibility in regional Victoria paper here.
Snapshot
Victoria’s Housing Statement sets a target of 800,000 new homes by 2034, with 60% of that growth expected to occur in established areas. Regional centres like Geelong are central to achieving this goal, but despite a pipeline of zoned land and strategic planning support, the delivery of infill housing remains significantly constrained. In Central Geelong, the economics of mid-rise apartment development often do not stack up, with many approved projects unable to proceed under current market conditions.
UDIA’s Making it Stack: Infill Feasibility in Regional Victoria report shows that the cost to deliver a new apartment in Geelong now far exceeds what most moderate-income households can afford. With feasibility gaps of more than $190,000 per dwelling, private developers are unable to bring projects to market without a shift in planning, policy and financial settings. The result is a stalled housing pipeline, rising pressure on affordability, and a growing disconnect between government targets and what is commercially achievable on the ground.
