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{{propApi.successMessage}} {{region}} Change locationACT & Southern NSW President's report
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Jason Bisa
HIA ACT & Southern NSW President
Currently, the industry is navigating varied impacts and influences from supply chain constraints, increasing interest rates, and insurance premium limitations to NCC22 changes, tightening planning rules and a lack of resources.
As the pressures mount, the expectations are forever increasing – build quicker, build cheaper and solve the housing crisis while you are there. The Federal Government’s initiative to build 1.2m dwellings in five years is in doubt before it starts. The lack of shovel-ready land, a protracted and broken planning system, and conflicting social and political ideologies have resulted in too much thinking and not enough doing. So, what is the solution?
Should land be as expensive as it is? Should an abundant natural resource be treated as a precious commodity? Should government-controlled land be sold at inflated market rates with a commercial mindset to maximise profit?
The solution is simple. The raft of charges on land must be reviewed as a priority. Stamp duty, council contributions, statutory fees, and GST add unnecessarily to the cost of developing greenfield land or rezoning and redevelopment. Governments and councils rely heavily on land and property charges and transactions as part of their revenue. The mindset and model need to change to that of an annuity income stream – lower the entry price (noticeably) and pay as you go for the use and benefit.
Increasing social and financial pressures, an influx of immigration, low rental stock levels and an imbalance of supply and demand will result in pressure the industry cannot bear. We have seen that generous incentives only result in rapidly increasing prices. One-off subsidies, discounts or initiatives are likely to result in the same. An overhaul of land-related taxes is required to restructure the housing market and ensuring it works efficiently.
The breadth and depth of the building and construction industry cannot be underestimated. If we can overhaul and strengthen current foundations and structures, we can begin sustainable growth in housing solutions for all.