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“But while the additional investment is a positive step, the Government must be clearer about what has been funded and what has actually been built,” said Ms Martin.
“Australians deserve clarity about what is real progress and what is simply approved funding. The government has talked about delivering 40,000 homes, but at this stage those figures reflect potential funding, not completed dwellings.
“Housing Australia’s figures show that as of this week, of the 18,650 homes supported under the first two rounds, just 889 have been completed, with a further 9,501 described as ‘under construction’. Under construction can mean a wide range of things in this industry, from a site being cleared to a slab being poured.
“We’re still a long way from 40,000 finished homes, and unless the obstacles slowing delivery across the entire industry are addressed, those homes simply won’t appear.
“Planning delays continue to hold up housing projects of all types, and that includes social and affordable housing. We also need far more serviced land in locations where people want to live because without land ready to build on, projects don’t progress beyond a concept.
“Workforce shortages and elevated construction costs also remain significant pressures, and they’re making it harder to get these projects to site.
“We know that working within the HAFF’s framework is also challenging for builders, with its excessively complex processes and opaque funding pathways.
“The recent announcement of an audit into HAFF provides an opportunity to reset some of these rules and processes, which will contribute to getting more homes completed.
“With the newly announced Round 3 due to open in January, the next phase must prioritise construction, not just announcements. The intent behind the HAFF is right, and the funding is appreciated, but at the end of the day, Australia doesn’t need more press releases, it needs more homes,” concluded Ms Martin.
The Housing Industry Association (HIA) has welcomed the Queensland Productivity Commission’s (QPC) Final Report as a vital blueprint for improving housing supply and affordability. However, HIA warns that the State Government’s refusal to tackle local government planning barriers threatens to derail the entire reform agenda.
“Lower interest rates have seen the volume of new homes commencing construction increase, but they still remain well below the government’s target,” stated HIA Senior Economist, Maurice Tapang.
The latest dwelling commencements data released by the Australian Bureau of Statistics today shows a sharp pick-up in multi-unit residential construction activity in the ACT.
“It is good to see the NSW Government taking action to address the chronic undersupply of housing in NSW,” said Brad Armitage, HIA Executive Director NSW.