PLANNING REFORM: So Victorian State Govt announced housing targets for Councils are under consideration. WHY? The Govt's falling well short of its target of 80k new homes pa. Only 54k in 2023, 52k forecast for 2024 and 55k for 2025. Not even enough to meet population growth, let alone tackle the shortage! WILL IT WORK? Not Likely. While some Councils have shown NIMBY like behaviour in refusing applications, there are way more approvals than commencements. The Govt needs to tackle high construction costs-labour and materials. No sane private developer will build high scale high rise in Broadmeadows or Epping when the constructions costs are greater than the price you can sell the apartments for! And surely we all know that a broader infrastructure contribution charge just makes housing more expensive for buyers! https://lnkd.in/grUz6QsT
Interesting times and hopefully something more concrete will be put in place soon, but it's hard to see construction costs going down any time soon!
I completely agree with the points raised in this post. It's clear that the current approach is not sufficient to meet the growing demand for housing. Addressing construction costs and infrastructure contributions is crucial to make housing more affordable and accessible.
Yes, all those planning permits granted but not actioned are a big part of the housing issue.
Chief Executive Officer at Ararat Rural City Council / Adjunct Professor
7moIs the impact of Windfall Gains Tax on development in rural communities going to be a part of the conversation?