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HIA’s Housing Scorecard benchmarks contemporary levels of activity in each state and territory against long term averages across indicators of home building and renovations activity, lending data and population flows.
“Victoria sits in fourth place in the rankings, while the smaller jurisdictions – Queensland, Western Australia and South Australia – race ahead,” added Mr Ryan.
“Inadequate release of new greenfield and infill land for home building has resulted in Victoria having some of the most expensive residential land in the country.
“Surging land, labour, finance, regulatory and tax imposts have combined to see the construction of new housing in Victoria plummet to decade lows, while smaller states have already begun to recover.
“People are starting to return to Victoria post-pandemic, and record inflows of overseas migrants and students continue. This should continue to generate underlying demand for new housing.
“Exceptionally low unemployment rates and stable interest rates have also helped sustain the key dynamics necessary for strong demand for new home building.
“Ideally, these conditions next year should lead to an increase in demand for home building work. The challenge for Victoria is that regulatory settings may not allow the home building industry to meet this demand.
“It will increasingly be state government policies that will determine the strength of home building over the short to medium term.
“Just as state and local government policies set the limit to the floor in this cycle, the upside potential for Australia’s home building markets will also be determined by the same policy decisions.
“States that can offer sensible and fair regulatory settings, competitive taxes, employment opportunities and more affordable residential land will see a stronger outlook for home building activity in coming years.
“On the flipside, punitive taxes and misguided regulations will only compound the costs and constraints that weigh on the industry, delaying growth and making it even more difficult to attract consumers back to the market,” concluded Mr Ryan.
Download our HIA Housing Scorecard
HIA is calling on the Federal Government to act urgently to support Australia’s building product manufacturers and suppliers, an industry worth more than $130 billion and critical to the delivery of new housing across the country,” HIA Managing Director, Jocelyn Martin said today.
With the delay to decisions on the content of NCC 2025, the ABCB has published a further amendment to the current NCC 2022 which applies from 29 July 2025. The purpose of this minor amendment is to align the NCC with recent changes to the Premises Standards which apply to Class 3 to 9 public buildings, common areas of Class 2 apartment buildings and short-term accommodation
“HIA alongside a group of construction leaders and Standards Australia came together today at Parliament House, to present a united front in getting easier access to Australian Standards in the hands of those who need them most,” said HIA Managing Director, Jocelyn Martin.
HIA has made a comprehensive suite of submissions to the Productivity Commission ahead of the upcoming Treasurer’s Economic Reform Roundtable on 19-21 August.