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“The investment in 40,000 social and affordable homes is recognition that Australia’s shortfall in housing supply is contributing to increased rental costs and reduced options for those most in need within our community,” HIA Managing Director, Jocelyn Martin said today.
“The investment mandate should particularly support more housing in regional, rural and remote areas of Australia.
“For homes to be delivered in regional areas, it is also important to ensure that the system of funding works to enable smaller community providers and the regional construction industry to be eligible to receive it, rather than just larger institutional investors.
“The provision of social housing is often most needed in areas where the financial returns are not always realistic. The application process needs to ensure that ‘special purpose vehicles’ set up to apply for funding in remote and regional areas are not disadvantaged by bureaucratic processes that increase costs and extend time frames,” said Ms Martin.
“Whilst this investment should see a boost in social and community housing, it is critical to recognise the Australian Government’s target to build 1.2 million homes over five years from 1 July this year will largely be dependent on the delivery of private housing.
“It is the adequate supply of all homes across the housing continuum which will have the biggest impact on the cost of housing and rental availability. Holding all levels of government to account for improving planning regimes, supporting the development of appropriate infrastructure and a skilled construction workforce must be a priority this year.
“In 2024 Australia’s residential construction industry is hoping to be able to operate in an environment with a positive approach to reducing red tape, a willingness to understand the risks and timeframes our builders work with and a recognition of the contribution a vibrant and strong residential construction industry can make towards the much needed supply of new homes,” concluded Ms Martin.
“Adelaide, Brisbane and Perth are seeing residential land values grow at a rapid rate, while Sydney and Melbourne’s values remain relatively stable,” stated HIA Senior Economist Matt King.
Plumbing and drainage inspections in the Huntlee and North Rothbury areas are moving from Cessnock City Council to Building Commission NSW.
The BASIX Transition period for eligible signed building contracts will end on 30 September 2024. BASIX Certificates must be generated by this date to apply the pre-1 October 2023 BASIX standards.
“As the number of new homes under construction continues to decline builders are reporting fewer difficulties scheduling skilled trades workers on their jobs, although availability of skilled workers remains worse than prior to the pandemic,” stated Geordan Murray, HIA Executive Director – Future Workforce.