Unapproved Parking Pad Highlights Melbourne's Land Scarcity and Parking Premium
A homeowner in Richmond, Victoria, has constructed a parking pad next to their house. The pad extends to the footpath but lacks a council-approved crossover, which is the legal connection between private land and the road. This means the kerb remains public, and other vehicles can legally park along it, potentially blocking access to the constructed pad.
The City of Yarra has stated that the location has "no legal point of access to the property," confirming that vehicles are permitted to park along the kerb.
The Economic Value of Off-Street Parking
The construction of such a parking solution highlights the significant value of off-street parking in Australia's property market. Real estate data indicates that a dedicated parking space can increase a home's value significantly.
A dedicated parking space can increase a home's value by $50,000 to $100,000 or more.
Buyer's advocate Cate Bakos cited two sales in late 2025 within the same Melbourne suburb that exemplify this premium. A house with an on-title parking option sold for $280,000 more than a comparable house without one, representing a substantial 23 percent premium.
Challenges in Obtaining Approval
Obtaining council approval for a driveway crossover can be a complex and lengthy process. In some heritage areas of Melbourne, council policies prioritize rear vehicle access over new front driveways.
Approvals may also be denied if a new driveway would reduce the amount of on-street parking more than it provides off-street capacity. This is known as a 'net gain' policy.
Broader Land Scarcity Trends
This situation is part of a wider trend in the Australian property market, characterized by increasing demand for small land parcels.
A Housing Industry Association report indicates that the average size of new residential lots in Sydney has decreased by 62 square meters since 2015. Concurrently, the price per square meter has risen from $1000 to $2019.
The acute scarcity and high value of land are further highlighted by recent sales in Sydney:
- A 110-square-meter driveway in Newtown sold for $1.25 million.
- A similar lot in Balmain fetched $2.08 million.
- Narrow land strips housing electricity substations in Lane Cove, Longueville, and Willoughby have sold for between $800,000 and $1.8 million.
Terry Rawnsley, KPMG Australia's planning and infrastructure economics director, noted that individuals are acquiring every available land parcel, reinforcing the scarcity of developable land in Sydney.