Housing blocks across Melbourne's sprawling outer suburbs are getting smaller, as developers say housing affordability is a huge issue for buyers.
In Eynesbury, in the outer west, the average new housing block will reduce from 700 square metres to 410 square metres, after Melton City Council approved plans from the developer, Resimax.
Resimax chief executive Steve Hooker said the cost of building a home had gone up by 15 to 20 per cent in the past two years, and buyers wanted smaller blocks to keep costs down.
"We're looking at, how do we best have a product for people that want to live in this beautiful area that suits their budget? Particularly with uncertainty around interest rates," he said.
He said maintaining the character of the area was important, and reducing the land size would save buyers up to $1,000 per square metre.
"So if you look at the difference that makes, from 400 to 700 square metres, it's probably not the full $300,000 in difference but it's about $200,000 and that's most of the cost of building a house," he said.
He admitted the developer would also save money.
"We're always trying to make the project as viable as possible — we're a commercial entity and we're seeking the best outcome — but for us it's meeting the market," he said.
Locals okay with smaller houses if there's outdoor space
Amber Kennedy lives with her partner and their three teenage children in Eynesbury, on a 320-square-metre block, in a house with two living areas and two bathrooms.
She said it was perfect for their needs.
"I don't really like cleaning and I didn't want to pay a big mortgage, so small blocks suit everybody," she said.
She said the area had plenty of open space, and was a lovely place to live on a smaller block.
"If there's always still focus on places for kids to play, basketball rings, playgrounds — things like that — I think it doesn't really matter how big your block size is," she said.
She said she was concerned about the availability of services like hospitals and schools across Melbourne's outer west, and said a new road linking Eynesbury to Werribee would make a big difference to residents.
A growing trend towards smaller houses
Data from the Australian Bureau of Statistics shows the average site area of new homes in Australian capital cities has dropped by 13 per cent over the last 10 years, from 496 square metres in 2012 to 432 metres in 2021.
Data from the Victorian government's Department of Environment, Land, Water and Planning shows housing blocks across Melbourne's growth areas, in particular, are shrinking too.
In 2007–8, 36 per cent of new housing lots were less than 500 square metres. In 2021, 89 per cent of new housing lots were that size.
Almost half of the new housing lots in Melbourne's growth areas were in the outer west, across Melton and Wyndham.
Services lacking on Melbourne's fringe
National Growth Areas Alliance chief executive Bronwen Clark said smaller house blocks meant the outer suburbs were getting denser, putting pressure on services.
She said data from the 2021 census showed nearly 100,000 houses were built in Melbourne's growth areas in the preceding four years.
"That's about 300,000 people who've moved in in four years, so to think they're expanding at a rapid rate without the natural infrastructure is a real concern," she said.
"We've seen the impact of the HomeBuilder incentive reach all of the growth areas, we've seen land sales and building approvals at record levels, so we're going to be seeing the population expanding at an even greater rate.
"And at the same time there hasn't been the catch-up of the infrastructure needs and the funding and planning for all those additional people."
She said the main concerns across the growth areas were roads, public transport and schools.
"Neighbourhoods are built, people move in and it can be years before the bus services arrive, or before they can park at a train station or before they can actually exit their estate on anything other than one road in or out," she said.
Eynesbury school already nearly full
Ebbie Hungerford is the school council president of the Eynesbury Primary School, which opened in 2021.
She said the school, which is tightly zoned, already has 370 students for 2023, including 71 preps.
She said she was not surprised the school's population was growing because Eynesbury was a nice place to live, with a tight-knit community.
"I don't know where my kids are half the time, but I know they're safe," she said.
