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News.com.au
12-05-2025
- Business
- News.com.au
Melbourne is growing so rapidly it's on track to be the same size as New York City
Melbourne is growing at such a rapid pace that the Victorian capital is on par to have a similar population to New York City in the distant future. Last week, business leaders and politicians gathered at a symposium to discuss how to prepare for more than nine million people calling the city home by 2050. But experts say Melbourne is struggling to cope right now with a mammoth increase to its resident base over recent years, leaving doubts about how it will manage the millions more coming. 'The huge challenges of population growth aren't in the distance,' Bob Birrell, president of the Australian Population Research Institute, said. 'They are here with us.' More congestion, a greater strain on infrastructure, higher demand for housing, an increase in cost-of-living and a decline in liveability are all on the cards, Dr Birrell warned. The nation's capital cities grew by a combined 427,800 people in the 2024 financial year, according to the latest Australian Bureau of Statistics data, marking a 2.4 per cent increase. Melbourne led the charge, adding 142,600 people to its population in just 12 months, following by Sydney at 107,500 people. Net overseas migration accounted for the overwhelming majority of growth. While economists largely welcome Australia's booming population, which contributes strongly to the country's fiscal stability, it comes at a cost. Professor Mark Crosby from Monash University's Business School said the projections 'don't excite me' because of how Melbourne has managed growth over the past 15 or so years. 'Badly,' Professor Crosby summarised. 'The population was four million at the 2011 Census and now, depending on the estimate, it's about 5.2 million to 5.4 million. The last million or so people, we've really struggled to deliver all the things a city needs.' As a result, it's fair to say Melbourne isn't well-placed to manage the growth of the future, he said. 'Unless they can address the issues, I think nine million people will make it a pretty hectic place to live, if you ask me.' The number of migrants aside, a major challenge is that 80 per cent of new arrivals settle in Greater Melbourne, putting intense strain on housing and infrastructure. 'A rapidly growing population requires a huge infrastructure build,' Dr Birrell said. 'Unfortunately, Victoria doesn't have a great track record when it comes to infrastructure.' The state is already facing an uphill battle in delivering the needs of Melburnians today, spending hundreds of billions of dollars on crucial projects. Some of them are either delayed or over budget – or both. 'The current government's signature policy, the Big Build, depends entirely on debt and it now has a very, very serious problem with what it owes,' Dr Birrell said. The state is forking out about $26 million a day in interest repayments on a staggering $188 billion worth of debt. Infrastructure is just one of the challenges, as significant as it is, with the other equally significant concern being housing, Dr Birrell said. 'The building industry can't provide enough housing, let alone affordable housing,' he said. 'The main driver of demand for housing is immigration. I don't see any meaningful improvement on the horizon, especially with the extent of population growth that's projected. 'The only outcome is that home prices remain high and young people continue to be priced out – or they take on enormous mortgages that account for 40 per cent or more of their salaries.' Tim Lawless, executive research director at Cotality, formerly CoreLogic, with a high likelihood of 'significant affordability challenges'. 'We've seen historically that when you simply pull the population growth lever, and pull it quite hard, it just forces prices higher if you don't have a supply response alongside it,' Mr Lawless said. And there isn't an adequate supply response, as much as governments have focused their efforts on stimulating home-building over recent years. 'The challenge is Melbourne has a lot of big infrastructure projects underway that use the same type of labour and materials as [housing construction],' he said. 'We're also not seeing any material improvement in feasibility for private sector housing builders either. We've seen construction costs increase by more than 30 per cent over the past five years, and even though the rate of growth has slowed, it's hard to see costs going backwards.' Over the next decade, it will be 'really hard' to get sufficient supply into the market, Mr Lawless said. A flight for housing affordability fuels urban sprawl and the more Melbourne sprawls, the more infrastructure that's needed, Professor Crosby said. 'All the new fringe suburbs in Melbourne tend not to be very well-planned in terms of public transport. It's definitely a big issue.' One way of coping with population growth is to prioritise density as well as infill development in inner and middle-ring suburbs. The fact you can find a house on a 500 square metre block within a few kilometres of the CBD – provided your budget is big enough – shows the need for a focus on infill development. Dr Birrell said the response to the current housing crisis has led to 'draconian' measures. In February, Premier Jacinta Allan delivered an ultimatum to councils to allow more dwellings to be built – a projected 2.24 million across Greater Melbourne by 2051 – or face the consequences. 'It's simple – work with us to unlock space for more homes or we'll do it for you,' Ms Allan said. 'We're in a housing crisis and the status quo is not an option. It's time to shake things up.' Councils now have until late 2026 to overhaul their planning processes to make it easier and quicker to develop housing stock at scale in their local areas. If they don't, the State Government will strip them of their planning powers. But overhauling planning systems is just one element of required change, Mr Lawless said. 'It's really about the actual mechanisms of delivering supply now,' he said. 'The costs associated with building simply don't stack up. There's a real disconnect. There are more immediate ways government could improve supply, like taxation reform. Taxes add about $50,000 to the cost of a dwelling, for example.' An infrastructure contribution fund, covering early stage costs for developers and builders, is another, he said. There's also an opportunity to explore ways of enticing people to consider alternatives to Melbourne and Sydney, which would support the growth ambitions of secondary capitals and smaller cities, Professor Crosby said. 'Can we get immigrants to go to other cities or smaller regional cities? What can we do to facilitate that? I think those are important questions to consider.' At last week's growth symposium, Melbourne Lord Mayor Nicholas Reece asked those gathered: 'What should Melbourne be like in 2050?' For his part, Mr Lawless said he remains an optimist. 'I would like to think by then we've seen some significant improvements across residential construction. I hope we've learned our lessons the hard way from history that we need infrastructure and housing supply policies that run hand-in-hand with population growth. 'But I'll also conclude by saying that if history is anything to go by, Australian cities do tend to have a nasty habit of not building enough to cater for rapid population growth. Hopefully history doesn't repeat.'
Yahoo
02-05-2025
- Politics
- Yahoo
Reform makes big gains in Worcestershire
The Conservatives have lost overall control of Worcestershire County Council after 20 years, with Reform UK the main beneficiary of a night the Tories would rather forget. Going into Thursday's vote, the Tories held 45 seats on the authority - those have been whittled down to 12. Reform - which already had two seats on the council, thanks to Tory defectors - now have 27, two short of an overall majority. Their success mirrors the picture across England, where Reform has gained control of several councils. Reform's first win was the first seat to be announced in Worcesteshire, when Kidderminster gym owner Mark Crosby took St Georges in Wyre Forest. He said he was "absolutely elated" for himself and the party - adding that the main takeaway from his campaigning was that people were ready for change. Reform went on to win eight of the 10 seats in Wyre Forest, where the Tories only managed to keep hold of two. Bill Hopkins, a former Conservative councillor who defected to Reform 18 months ago, kept hold of St Chads. "The Conservatives have let us down; Labour are seemingly letting us down," he said. "People are so fed up. They want change, and we are the only party that can deliver change." Reform picked up wins in each division - including, notably, Redditch, where every single one of the eight previously Conservative seats now belong to Nigel Farage's party. It was a better picture for the Tories in Wychavon. They remain the majority party in the division, despite losing seats to Reform, the Lib Dems, and the Greens. Reform might have had one more, had it not been for a dead heat between its candidate and the Greens' prospective councillor in Littleton. The outcome came down to drawing both candidates' names out of a box at random, with fortune smiling on the Greens' Hannah Robson. "[It was] really terrifying," she said. "I thank the universe for letting my ballot paper come out the box." In Worcester, council leader Simon Geraghty lost his Riverside seat after nearly ten years. Conceding it had been "a difficult day" both for him and the Tories, Geraghty said, adding he had been "incredibly proud" to lead the authority. But he said he was unclear as to what the county council would look like under Reform. "They will have to have a set of policies - we don't know what they will be - to govern Worcestershire. "We had a clear manifesto; we had a six-point plan for Worcestershire. I'm not sure what Reform will do. And they will be faced with the same difficulties that we've faced." Geraghty's seat went to Tor Pingree - one of eight which are now in the hands of the Greens. She said people were growing "disheartened" with the two main parties. "They want actual change in Worcester, and they haven't seen that," she said. Describing her party as "snowballing", Pingree said she was confident the Greens could make a difference on the council. "There's quite a lot of us now, and we have quite loud voices. So I'm hoping we can really make some change and switch things up." Labour started the day with three seats on the council; that has been reduced to two. Worcester's Labour MP Tom Collins suggested that was as much a reflection of people's dissatisfaction with the Tories as anything else - although he conceded that they were also likely frustrated with the pace of change since Labour's general election win. He said it was now down to Reform to prove its worth. "We've had some very simple answers proposed to very complex problems," he said of the party. "And now it's for them to demonstrate what they can actually do when they're given the opportunity." Reform UK has delivered a seismic shock to the county's political scene, far exceeding their own expectations. With 27 seats they are now the largest party on the council, although agonisingly for them, two seats short of an outright majority. Together with gains made by the Greens, Reform's success is a sign many voters in Worcestershire want change and are now looking outside Labour and the Conservatives. All eyes are on whether Reform can put together an administration, most likely a minority. During the campaign, Reform kept its key priorities relatively simple: an audit of the county council's finances to cut waste and ensure value for money, and a pledge to put any "spare" money into roads. While some of its councillors are former Tories, many are making their first entry into local politics. While this freshness may have been part of the party's appeal, it may mean it takes them time to get to grips with running a local authority. Additional reporting by Alistair Binney and Tom Edwards. Follow BBC Hereford & Worcester on BBC Sounds, Facebook, X and Instagram. Worcestershire County Council
Yahoo
02-05-2025
- Politics
- Yahoo
Reform makes big gains in Worcestershire
The Conservatives have lost overall control of Worcestershire County Council after 20 years, with Reform UK the main beneficiary of a night the Tories would rather forget. Going into Thursday's vote, the Tories held 45 seats on the authority - those have been whittled down to 12. Reform - which already had two seats on the council, thanks to Tory defectors - now have 27, two short of an overall majority. Their success mirrors the picture across England, where Reform has gained control of several councils. Reform's first win was the first seat to be announced in Worcesteshire, when Kidderminster gym owner Mark Crosby took St Georges in Wyre Forest. He said he was "absolutely elated" for himself and the party - adding that the main takeaway from his campaigning was that people were ready for change. Reform went on to win eight of the 10 seats in Wyre Forest, where the Tories only managed to keep hold of two. Bill Hopkins, a former Conservative councillor who defected to Reform 18 months ago, kept hold of St Chads. "The Conservatives have let us down; Labour are seemingly letting us down," he said. "People are so fed up. They want change, and we are the only party that can deliver change." Reform picked up wins in each division - including, notably, Redditch, where every single one of the eight previously Conservative seats now belong to Nigel Farage's party. It was a better picture for the Tories in Wychavon. They remain the majority party in the division, despite losing seats to Reform, the Lib Dems, and the Greens. Reform might have had one more, had it not been for a dead heat between its candidate and the Greens' prospective councillor in Littleton. The outcome came down to drawing both candidates' names out of a box at random, with fortune smiling on the Greens' Hannah Robson. "[It was] really terrifying," she said. "I thank the universe for letting my ballot paper come out the box." In Worcester, council leader Simon Geraghty lost his Riverside seat after nearly ten years. Conceding it had been "a difficult day" both for him and the Tories, Geraghty said, adding he had been "incredibly proud" to lead the authority. But he said he was unclear as to what the county council would look like under Reform. "They will have to have a set of policies - we don't know what they will be - to govern Worcestershire. "We had a clear manifesto; we had a six-point plan for Worcestershire. I'm not sure what Reform will do. And they will be faced with the same difficulties that we've faced." Geraghty's seat went to Tor Pingree - one of eight which are now in the hands of the Greens. She said people were growing "disheartened" with the two main parties. "They want actual change in Worcester, and they haven't seen that," she said. Describing her party as "snowballing", Pingree said she was confident the Greens could make a difference on the council. "There's quite a lot of us now, and we have quite loud voices. So I'm hoping we can really make some change and switch things up." Labour started the day with three seats on the council; that has been reduced to two. Worcester's Labour MP Tom Collins suggested that was as much a reflection of people's dissatisfaction with the Tories as anything else - although he conceded that they were also likely frustrated with the pace of change since Labour's general election win. He said it was now down to Reform to prove its worth. "We've had some very simple answers proposed to very complex problems," he said of the party. "And now it's for them to demonstrate what they can actually do when they're given the opportunity." Reform UK has delivered a seismic shock to the county's political scene, far exceeding their own expectations. With 27 seats they are now the largest party on the council, although agonisingly for them, two seats short of an outright majority. Together with gains made by the Greens, Reform's success is a sign many voters in Worcestershire want change and are now looking outside Labour and the Conservatives. All eyes are on whether Reform can put together an administration, most likely a minority. During the campaign, Reform kept its key priorities relatively simple: an audit of the county council's finances to cut waste and ensure value for money, and a pledge to put any "spare" money into roads. While some of its councillors are former Tories, many are making their first entry into local politics. While this freshness may have been part of the party's appeal, it may mean it takes them time to get to grips with running a local authority. Additional reporting by Alistair Binney and Tom Edwards. Follow BBC Hereford & Worcester on BBC Sounds, Facebook, X and Instagram. Worcestershire County Council


BBC News
02-05-2025
- Politics
- BBC News
Worcestershire County Council elections: Big gains for Reform
The Conservatives have lost overall control of Worcestershire County Council after 20 years, with Reform UK the main beneficiary of a night the Tories would rather into Thursday's vote, the Tories held 45 seats on the authority - those have been whittled down to - which already had two seats on the council, thanks to Tory defectors - now have 27, two short of an overall success mirrors the picture across England, where Reform has gained control of several councils. Reform's first win was the first seat to be announced in Worcesteshire, when Kidderminster gym owner Mark Crosby took St Georges in Wyre said he was "absolutely elated" for himself and the party - adding that the main takeaway from his campaigning was that people were ready for went on to win eight of the 10 seats in Wyre Forest, where the Tories only managed to keep hold of two. Bill Hopkins, a former Conservative councillor who defected to Reform 18 months ago, kept hold of St Chads."The Conservatives have let us down; Labour are seemingly letting us down," he said. "People are so fed up. They want change, and we are the only party that can deliver change."Reform picked up wins in each division - including, notably, Redditch, where every single one of the eight previously Conservative seats now belong to Nigel Farage's party. It was a better picture for the Tories in remain the majority party in the division, despite losing seats to Reform, the Lib Dems, and the might have had one more, had it not been for a dead heat between its candidate and the Greens' prospective councillor in outcome came down to drawing both candidates' names out of a box at random, with fortune smiling on the Greens' Hannah Robson."[It was] really terrifying," she said. "I thank the universe for letting my ballot paper come out the box." In Worcester, council leader Simon Geraghty lost his Riverside seat after nearly ten it had been "a difficult day" both for him and the Tories, Geraghty said, adding he had been "incredibly proud" to lead the he said he was unclear as to what the county council would look like under Reform."They will have to have a set of policies - we don't know what they will be - to govern Worcestershire."We had a clear manifesto; we had a six-point plan for Worcestershire. I'm not sure what Reform will they will be faced with the same difficulties that we've faced." Geraghty's seat went to Tor Pingree - one of eight which are now in the hands of the said people were growing "disheartened" with the two main parties."They want actual change in Worcester, and they haven't seen that," she her party as "snowballing", Pingree said she was confident the Greens could make a difference on the council."There's quite a lot of us now, and we have quite loud voices. So I'm hoping we can really make some change and switch things up." Labour started the day with three seats on the council; that has been reduced to Labour MP Tom Collins suggested that was as much a reflection of people's dissatisfaction with the Tories as anything else - although he conceded that they were also likely frustrated with the pace of change since Labour's general election said it was now down to Reform to prove its worth."We've had some very simple answers proposed to very complex problems," he said of the party. "And now it's for them to demonstrate what they can actually do when they're given the opportunity." Analysis: James Pearson, BBC Hereford & Worcester political reporter Reform UK has delivered a seismic shock to the county's political scene, far exceeding their own 27 seats they are now the largest party on the council, although agonisingly for them, two seats short of an outright majority. Together with gains made by the Greens, Reform's success is a sign many voters in Worcestershire want change and are now looking outside Labour and the eyes are on whether Reform can put together an administration, most likely a minority. During the campaign, Reform kept its key priorities relatively simple: an audit of the county council's finances to cut waste and ensure value for money, and a pledge to put any "spare" money into some of its councillors are former Tories, many are making their first entry into local politics. While this freshness may have been part of the party's appeal, it may mean it takes them time to get to grips with running a local authority. Additional reporting by Alistair Binney and Tom Edwards. Follow BBC Hereford & Worcester on BBC Sounds, Facebook, X and Instagram.