The Age newspaper has raised concerns about an oversupply of unsold homes on Melbourne's urban fringe, suggesting it might trigger a further slump in property values. Asked to comment on the issues, SGS Principal and Partner Dr Marcus Spiller warned
''This is a troubling scenario of a city divided. We will wind up with two Melbournes, one that is prosperous and well served with infrastructure and employment opportunities, versus a second one on the fringes which is dislocated with property prices that are far less buoyant''.
Spiller's concern on this issue is longstanding and informed by SGS Economics and Planning research. For instance, in a publication by the Smith Institute he argues that place making at the metropolitan level is crucially dependent on inclusion and the creation of a ‘city of opportunity'. City structure conditions social mobility, notwithstanding the pace of economic growth or the redistributive infrastructure of the state, he observes. Drawing on research by SGS Economics and Planning, he recounts the development of Melbourne as the suburban city, to identify a looming challenge for Australian policymakers and prescribe some policy answers.
Read the Age article ‘Housing glut hits suburbs'
Read Dr Marcus Spiller's 'Place making, inclusion and governance in the suburban city - a case study of Melbourne, Australia', Chapter 7 in the Smith Institute's report 'Investing in better places: international perspectives'.