Housing's tall story faces a new ending

The first tenants of the new "Sienna" apartment complex sprawled along Mount Alexander Road on the old Lombards site in Travancore have started moving in.

For those who have bought one of these 240 apartments, it might be convenient inner-city living. There's a tram line on their doorstep, and a freeway. But if the new state government has its way, towering developments like these might be limited.

Sienna is the second of three stages of this development by Bensons Property Group. The first five-storey stage opened a couple of years ago and sold out. The second sold out too. When the third stage opens in 2012, it will be 25 storeys high, including eight car park levels.

It is this higher-density style of living that has some worried, including the new coalition government. Part of its election platform was to undo amendments by the previous Labor government that have made building high-rise apartments along transport corridors easier.

The Travancore apartments are mainly priced under $500,000 unthinkable for an inner-city detached house. With a shortage of affordable housing, the challenge for governments is how to supply more housing close to transport that people can afford and in areas where people want to live.

And the quandary for those trying to get into the market is do they buy a bigger house on the fringes where the social capital is poor, or a small apartment closer to the city?

"Middle-class save our suburbs groups have been very active in opposing these developments," says Terry Burke, professor of housing studies at Swinburne University's Institute for Social Research.

"It's a very self-interested movement because while they might call themselves a suburb, they might also call themselves a 'keep out the poor' movement, because there's no doubt that the shortage of housing is one of the major factors causing the affordability problem."

Professor Burke is in favour of greater density along the transport corridors but says there needs to be debate about the most appropriate form these developments take. "And my personal view is we should not be going up more than eight storeys in most suburbs."

Associate Professor Robin Goodman, from RMIT's School of Global Studies, Social Science and Planning, says medium-density housing is revitalising high streets in areas such as Northcote and Preston.

But she warns that it won't work everywhere. And nor is she in favour of higher developments. "We don't need anywhere near that height and density to fit growing populations into Melbourne's existing areas."

Recently resigned Moonee Valley councillor Rose Iser is among those opposed to the Travancore development.

Ms Iser, who ran for the Greens in the state election against former planning minister Justin Madden in the seat of Essendon, says the third stage of the building will be isolated in terms of its height, and out of context. "We need to have a more sensible approach so that there is good design backing up high density," she says.

But Bensons managing director Rick Curtis says the development is designed so that its highest part is closer to the city.

He says a balance between growth on the urban fringe and the inner city is necessary for affordability.

But the consequence of keeping the cost of apartments down is that they are shrinking. This means they are more likely to be rented out than occupied by their owners, who prefer more space.

Robert Pradolin, general manager of Australand Residential, which has developments in Carlton, Parkville and Burwood, estimates up to 80 per cent of apartments are rented out. "The developers are designing their apartments so that they can reach a price point in the market that attracts investors."

He says there is a social cost to smaller apartments. "If you want to live in the city you compromise size for the surroundings that you have and the amenity you have and the enjoyment of the hustle and bustle of city life. But when you start to have a family you need to weigh things up and look at what you get in the city versus the size of what you get in the suburbs."

HIGH RISERS

What some of the residents are saying

NUMBER 243

Mardi Corcoran, 23, and Craig Lacey, 23 She is a nurse at the Royal Childrens Hospital and he does waterproofing and roofing on commercial sites around the city. They cite convenience for deciding to buy an apartment here. If they go shopping at Queen Victoria Market, they catch the tram.

We wanted to be close to everything, she says.

You can do most things without a car, he says.

NUMBER 835

Jason Ye, 23 He is a pastrycook in Lygon Street and lets his younger brother live with him.

His apartment is close to the city and his workplace, and he drives or cycles to work. His balcony faces the freeway and to the right there is a view of the city in the distance. At night, he says, it is a pretty view, but he concedes it can be noisy on this side of the building. He loves the idea of buying a house but probably cant afford to right now and doesnt want to live too far out.

Ten kilometres away from the city would be fine, but further out Im not really interested.

NUMBER 465

Vicki Scott, 48 Lives with her son Joel, 15.

They moved after a divorce and have downsized from a huge house in Keilor to an apartment. She works in a shop in Tullamarine.

I always thought when I got a bit older I wouldnt mind a smaller place.

NUMBER 565

Amanda Zhang, 26, and Mike Wang, 26 He is a store manager in the city. She is not working currently because they are going to China soon to get married. When they return in a few months they will settle into their apartment.

He likes taking the tram to work because parking in the city is expensive. They say their apartment faces the main road, making it pretty quiet. This is important because she has trouble sleeping. They feel safe because the security is good but when they have children they will need a bigger place.

They like apartment living, but she says Australia shouldnt have too many high buildings because there is too much hustle and bustle.