smh.com.au
Perth's Premium Suburb Demolitions Fuel Property Price Growth
New research reveals thousands of homes in Perth's affluent suburbs were approved for demolition between 2019 and 2024, with this trend linked to higher property price growth, driven by factors such as larger lot sizes, increased desirability, and outdated housing stock.
- What factors contribute to the high rate of home demolitions in these areas?
- The research highlights a correlation between high demolition rates and property price appreciation in Perth's premium suburbs. The demolition trend is driven by factors such as larger lot sizes, increased desirability, and outdated housing stock. High-income individuals' willingness to invest in substantial rebuilds further reinforces the exclusivity and value of these areas.
- What is the relationship between home demolitions and property price growth in Perth's premium suburbs?
- Between 2019 and 2024, Perth saw thousands of homes approved for demolition, predominantly in affluent areas like Nedlands-Dalkeith and Riverton-Shelley-Rossmoyne. This demolition trend, linked to higher price growth, reflects the increasing desirability of these locations and the financial viability of rebuilding on large lots. The high land value in these areas means that even older homes represent a small fraction of the overall property value, making demolition attractive for redevelopment.
- What are the long-term implications of this demolition trend for Perth's housing market and urban development?
- This trend suggests a significant shift in urban development in Perth's wealthiest suburbs. The focus on higher-density living through redevelopment in established areas will likely continue, reshaping the city's landscape over the next five years. The continued demand for prime locations will drive this trend, despite higher entry costs.
Cognitive Concepts
Framing Bias
The framing strongly emphasizes the positive aspects of demolishing older homes in affluent suburbs, highlighting increased property values and the attractiveness of new builds. The headline itself, while not explicitly stated in the prompt, would likely focus on this positive aspect. The introduction of wealthy suburbs and high property values sets the tone and implicitly frames the issue as a positive development for the wealthy. The use of terms like "prime candidates for substantial redevelopment" and "stronger capital growth" reinforces this positive framing. The challenges faced by those who are priced out are largely omitted.
Language Bias
The language used is generally neutral, but the frequent use of terms like "premium," "prestigious," "wealthiest," "luxurious," and "affluent" creates a positive association with high-end properties and reinforces the focus on the wealthy. The phrase "dirt-cheap price" for an apartment costing \$405,000 demonstrates a skewed perspective on affordability. More neutral alternatives could be used, such as 'expensive' instead of 'luxurious', 'high-value' instead of 'prestigious', and avoiding subjective terms like 'dirt-cheap'.
Bias by Omission
The article focuses heavily on high-end real estate markets and the demolition of older homes in premium suburbs, neglecting the experiences of those in less affluent areas. It doesn't address the potential displacement caused by rising property values and the demolition of existing homes, nor does it discuss the impact on affordability for lower-income residents. The perspective is almost entirely from real estate professionals and high-income homeowners.
False Dichotomy
The article presents a somewhat false dichotomy by implying that demolition and rebuilding in premium suburbs are the only or best way to increase housing supply and improve affordability. It does mention increasing density, but doesn't explore other solutions like building more affordable housing in other areas or implementing policies to control property price growth.
Gender Bias
The article doesn't appear to exhibit significant gender bias in its language or representation. While the quotes are primarily from male real estate professionals, this is not unusual in the context of the real estate industry and doesn't suggest an intentional bias.
Sustainable Development Goals
The article highlights that demolition and redevelopment in affluent areas are increasing property values, exacerbating existing inequalities in housing affordability. While increasing housing supply is mentioned as a means to improve affordability, the focus on high-end areas and the significant financial investment required for redevelopment disproportionately benefits higher-income individuals, leaving less affluent populations further behind.