Urgent reform required to meet residential demand
The Property Council has called for immediate action by the Government to stimulate new development by removing red tape restraints holding back residential development in the State.
In a submission to Red Tape Commissioner Anna Cronin, the Property Council has urged the State Government to support additional funding for councils to improve planning and manage the backlog in planning applications.
The ANZ/ Property Council Survey released today shows expectations for residential capital growth have improved by 54.1 index points in the past 12 months, with positive growth expected for the first time in over a year for the December 2019 quarter.
Property Council Victorian Executive Director, Cressida Wall has warned however that new development isn’t keeping pace with ABS data released this week revealing a year on year fall in building approvals of 22.8 per cent in Victoria.
“Confidence is returning to the residential market, and at the same time, Victoria’s population is growing faster than any other state in Australia. However new land releases and construction have been declining,” says Ms Wall.
“We are at a critical stage in the residential supply cycle. The State Government needs to be proactive in supporting councils to deliver new residences to the market or we will be staring down the barrel of a new affordability crisis before we know it.”
Currently, red tape delays are stifling development with insufficient funding preventing councils from assessing planning applications in a timely manner.
Greater efficiency in our planning system is critical to ensuring the delivery of much-needed new residential supply to ease housing and rental pressure across Melbourne and in particular in the middle-ring suburbs.”
Buyers aren’t the only group at risk of being priced out in a market recovery. The significant decrease in the number of new properties entering the market in Victoria also threatens renters, as limited availability and population growth pushes up prices.
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Emily Young | E firstname.lastname@example.org
0447 020 329