Hn... with immigrants we do have room for lots of more people though I would suggest that Australians tend to be rather against urbanisation.
I think we're used to the idea of living in a large house with a front and back yard, grass lawn and enough space for backyard cricket or possibly a pool. Apartments are viewed quite negetively. I know in the country areas like Wonthaggi and Inverloch the local population rather dislike the heavy development towards new houses in the area. There was protest and unrest over the development of a desalination plant in the area to increase Melbournes water supplies during dry summers. I understand it's not being used right now because we have about 80% water in reserve.
Eh... I dislike to say it but there's also a fair amount of distrust against non-caucasian people, asian people especially. This is most likely lingering effects from the White Australia policy along with distrust brought about by WWII, Vietnam and so on. It's less of a problem the closer you get to the centre of the cities due to greater diversity but in the country it's more present. The nearest example I can give (living around Melbourne) is Box Hill which has gained a rather negative reputation because it's a large centre for asian culture and people. The population there has increased quite noticebly in the last 20 years.
At university there are a lot of international students, studying in Australia then moving back home. It's quite incredible the diverse amount of people and there seems to be very little to no conflict amongst the students on the matter.
Oh, and I'll bother with our politics when they all stop arguing like children. ("You said this, you said that. Blah blah blah")