MEDIA RELEASE

Media Release – INTERVIEW OPPORTUNITY AVAILABLE Sunday May 8th, 2016 Attention Editor/Property Editor/Chief of Staff PROPERTY SHRINKING ACROSS QUEENSLAND MARKET MACKAY TO FEEL IMPACT Queensland’s leading independent property commentator says that the size of new properties being built in Mackay are set to shrink dramatically over the next five years with 40sqm apartments becoming a reality. Head of Matusik Property Insights, Michael Matusik says the shrinkage of property designs for units, apartments, townhouses and residential homes is inevitable, with small scale living being one of the few viable ways to address housing affordability. “There is a real lack of new housing choice in the Australian market. This is stopping first home buyers. It is stopping empty-nesters from downsizing. It is, by default, oversupplying the new high-rise apartment market and stalling a more sustainable housing supply,” said Matusik. There is no doubt that smaller scale living has become increasingly popular, with Matusik suggesting that low housing affordability; less full-time work and now, little or no real wage growth is fuelling this trend. “Our research is telling us that Australia is about to undergo a massive change in terms of its economy and especially its housing market. The vast majority will be forced to compromise on housing choices, and this will often mean less, especially when it comes to dwelling size.” While Mr Matusik asserts that there is nothing wrong with small homes, with size only being one factor, it’s become an increasing matter of compromise that is clear when looking at the wider picture. “A lot of the factors that are forcing property buyers hand when it comes to choosing small is demographics, economics and lifestyle.” “At the moment, 51% of households hold just one or two people, and in the near future we can expect this to rise to two-thirds of the population.” “Couple this with the growing rate of underemployment and the high cost to buy a normal home in Australia, and we start to see an economic picture that frankly doesn’t support lavish homes into the future.” ........./2

........./2 “Add to the mix our time-short lifestyles, where long commutes from ‘home’ to ‘work’ to ‘play’ are no longer acceptable…and its clear we as a nation, by and large seem happy to trade ‘space’ for ‘place’, and this is supporting the choice for high density, small scale stock coming into our regional centres.” But with this trend of small scale living comes the question of ‘how small is too small?’ and just how savvy new home buyers will need to be to create the impression of space in smaller living quarters. “To compensate for size, compact housing design must be clever in its use of space; finishes; building amenities and services. In the future, multi-functional space will become the norm.” “Do we really need, for example, a full-time dining room or that second unused bedroom? In short, we cannot continue to afford all the traditional spaces that once made up our homes.” But for some residents, making these sacrifices in conforming to small scale living is not a one-size-fits-all option, according to Mr Matusik. “We need to consider that many residents want to ‘age in place’. Most do not want to live in a high-rise apartment complex. They would like to downsize; stay local and have some nexus to the ground.’ “But in the absence of affordable choice, they stay put, often as a couple in large, detached homes.” “What is missing – from an affordability and liveability viewpoint – is new housing product that is in between big and small. We need more townhouses; ‘plexes’; terrace homes; small-lot homes; flexible dwellings.” Matusik argued that public policy needs to be more in line with the public and provide a supply that meets their demands. “Current public policy is not allowing private enterprise – developers and builders – to supply what the market really wants – a broader choice in living options.” ENDS

........./3 Editor Note: All material provided by Matusik Property Insights is free to use, report, and re-use, provided it is accredited to Matusik Property Insights. For further information please contact Michael Matusik or visit the Matusik Property Insight website www.matusik.com.au Media Contact: Michael Matusik 0411 793 535 michael@matusik.com.au