Josh Symons’ Post

Building approvals in Australia at decade lows — what does this mean for the housing crisis? Decade-low building approvals could spell disaster for the future of the Australian government's ambitious plans to tackle the worsening housing crisis, property experts say. New statistics released by the Australian Bureau of Statistics show the total number of dwellings approved in April fell by 0.3 percent from the month prior. Approvals were also down in three out of the seven states. #housing #buildings #theglobalbpo Full Story: https://lnkd.in/gfE9a_Xy

This week I spoke to Gus McCubbing at The Australian Financial Review about how planning delays are impacting upon the supply of housing in Victoria. Whilst planning is only one part of addressing the critical housing shortage, it is important to shine a light on how slow the process can be. In an environment with higher interest rates and construction inflation, delays can be the difference between projects finishing or being abandoned mid way. Tim Gurner of GURNER™ Group who was also interviewed for this piece, estimates that less than half of the 51,000 new dwellings approved in Victoria last year will actually get built. This is despite the Victorian State Government targeting 80,000 new homes a year. We need a reformed planning system that is up to the task of making good decisions, on an increasing number of medium density projects, in much quicker timeframes. #housingcrisis #missingmiddle #betterplanning

What is holding back the delivery of residential buildings in the "housing crisis"? Perhaps it is a lack of skilled labour and management, which has resulted in an ever increasing plethora of defects impacting home owners and investors alike undermining confidence in the market? Are the government settings (State and Federal) relevant and at all feasible against this backdrop? Have a read of SJA Managing Director, Steve Abbott',s experienced and learned viewpoints in the interview included in article attached. My view is we have a system which as currently structured is not capable of delivering to government policy or aspiration without a substantive and pragmatic long term overhaul of the residential construction industry and associated supply chain. Thoughts??

According to a recent report by the RCCAO, Burlington has the lowest home-building rate in Ontario, constructing just 0.15 homes per 1,000 residents annually. This is a critical issue that highlights the urgent need for policy changes to address restrictive zoning laws, streamline approval processes, and make more land available for development. As we continue to navigate the housing crisis, it's essential to focus on creating sustainable solutions that will increase housing supply and affordability. Read more about the report and the steps needed to improve the situation. https://buff.ly/45y35Oo

Developing better standards for apartments, then increasing their supply by expanding use of the Residential Growth Zone will unlock more housing choices for Victorians and make better use of our infrastructure. The Business Council of Australia is calling for extensive rezoning across Melbourne and major regional towns to encourage more medium- and high-density housing to be built near infrastructure and services Annika Smethurst reports in The Age today - https://lnkd.in/gYcvEzec Making greater use of the existing Residential Growth Zone mechanism in areas near public transport and services would be a good start. And we should combine this with clearer standards and design guidance on low-rise apartments in the Victorian Planning Provisions. Check out 'Our Home Choices' from Infrastructure Victoria for more detailed evidence, analysis and policy recommendations - https://lnkd.in/eeaNi4rb #housing #choices #zoning #reform #infrastructure

One of the policy changes that Infrastructure Victoria can make to improve housing affordability and fairness is to ask for rental property investors to pay commercial property taxes. As a business activity it seems only fair they pay business taxes. The additional taxes can be used to fund more affordable housing and social housing infrastructure.

Exciting news from the property and housing sector! Check out the latest article on news.com.au where our Managing Director, Steve Abbott shares his insights on Australia's ambitious goal to build 1.2 million new homes within the next 5 years. Steve Abbott warns of potential challenges, highlighting that this rapid development could lead to a 'ticking time bomb' effect. His thoughtful analysis sheds light on the delicate balance between meeting housing demands and maintaining quality. Dive into Steve Abbott's expert perspective here: https://lnkd.in/g4jxd3Gb Article by Shannon Molloy #HousingMarket #RealEstate #SJA #SteveAbbott #UrbanDevelopment #AustraliaHousing #NewsUpdate #News

A rezoning blitz is needed to radically move the dial on the current housing crisis. The Business Council of Australia (BCA) has called on governments to undergo an extensive program of land rezoning across major cities and towns, to allow medium and high-density development in the vicinity of infrastructure and services. BCA Chief Executive Bran Black said zoning reforms were imperative to address housing supply. “As it stands, based on current construction rates, Australia will not be able to meet the targeted 1.2 million new dwellings under the National Housing Accord over the next five years,” Mr Black said. He said ABS data for dwelling completions over the 2023-24 financial year showed around 176,000 new dwellings built, falling around 64,000 homes short of what would be needed each year going forward. “We need state and territory governments to unlock more land for more homes in cities and towns across Australia so we can fix this supply crisis.” Mr Black said there was also a need for a transparent process for home builders to put forward proposals to boost housing supply, through rezoning, managed by state government and consolidated zoning types that were broad and consistent across entire states, providing clarity for home builders. “These changes need to allow for greater density and height near good transport services, while at the same time protecting the quality of life, green space and heritage of an area.” “Put simply, we need to build enough homes where people want to live, so until we fix that problem, it will be very hard to hit our housing targets. Building a home in the right place is as important as building it at all.” Mr Black said that across the Tasman in New Zealand, Auckland was an excellent example of how rezoning changes have been successful in improving supply and ultimately lowering price pressures. “In 2016, Auckland rezoned about three quarters of residential land, and a massive increase in home building followed. “They’ve now shared a report showing that this has contained the cost of housing in the long run, approving affordability, with rents at least 26 per cent below what they would have been without the rezoning, and a stabilisation of long-term dwelling prices” Mr Black said. https://lnkd.in/gqDHrQqw #housing #property #zoning Sign-up to the free biweekly Newsreel newsletter: https://lnkd.in/gDGxznVv #newsreel

Crystal ball gazing is an inexact art...even 5 years into the future can change dramatically based on a range of external factors...let alone 30 years. I've been saying, as far back as 2018, that (here in Canterbury) we have been building houses faster than we have been developing land. In January 2021, the average price for a green-field residential section was around $450 per m2...by November 2021 that price had increased to $1,000 per m2 (with many sales recorded at well above this level). This increase in price was driven by two primary factors: Demand exceeded supply. Builders and Developers thinking that the growth bubble would continue indefinitely. Of course, by early 2022 the wheels fell off the construction market and demand for new housing fell away significantly...leaving many builders and developers with more land than they needed. From the peak of the market (July 2022) to now, new residential building consent numbers have fallen by more than 30%. Land prices have come back somewhat...to probably an average of around $850 per m2, but this isn't going to stay here for long. Despite this...annual construction numbers are still above the long term average. Taking all of this into account, from 2021 to the end of this year, Greater Christchurch will have seen more than 25,000 new dwellings consented, which is more than double the 11,000 estimated by the planners. Now, of course, there are a lot of moving parts here. A building consent doesn't necessarily lead to a new house being built (which is why Code Compliance data is now important). Population growth and economic conditions are beyond the control of builders and developers. The type, style and location of where we live is changing...but this is a long term trend and quite able to be identified in the short term. What can be certain is that the demand for new housing will continue. In addition to the "push" for intensification, there will continue to be a significant, long term demand for green-field development. This needs to be met with continued land and supporting infrastructure development. I support the recent announcements for fast track approval of land development...but we need more. Chris Penk MP Christopher Bishop Carl Davidson

Home builders and developers profit by creating new homes. When they stop, it raises questions. Recently, many major housing projects have been abandoned, including AV Jennings' decision to scrap a development near Caboolture, Brisbane, which would have added 3,500 homes to an under-supplied market. Despite high demand, developers are finding it unviable to build due to massive cost escalations. Local council infrastructure charges and lengthy approval processes, along with new construction codes, have significantly increased building costs. Developers say these costs make large residential projects financially unfeasible, as the required sale prices would be unaffordable. This affects both high-rise apartments and housing estates. The core issues in the housing industry – shortages, poor affordability, and the rental crisis – stem from political decisions. Source: Hotspotting by Ryder #australianproperty #housingcrisis #propertyupdate #realestatenews #housingshortage #affordabilitycrisis #constructioncosts #propertydevelopment #realestatechallenges