The federal government’s HomeBuilder did much of the heavy lifting in 2020. With record house approvals and positive market sentiment, the Property Council is turning its advocacy efforts to state governments.
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Three key takeaways:
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Dwelling approvals rose for the sixth consecutive month in December, increasing by 10.9 per cent month-on-month, according to ABS building approvals data.
Private house approvals were strong across the country, with Victoria, South Australia and Western Australia setting new records. New loan commitments also rose by 8.6 per cent.
Meanwhile, positive sentiment in the residential property market has also hit a new high, according to ME Bank’s latest quarterly sentiment survey.
Around 72 per cent of those looking to buy said “stimulus measures such as HomeBuilder, first-home buyer incentives and stamp duty relief in some states have made buying or investing in property more attractive to them”. This rose to 74 per cent among first home buyers, ME Bank says.
“Last year, the Property Council’s focus was working with the federal government on HomeBuilder – and this has undoubtedly been the ‘workhorse’ of Australia’s economic recovery,” says Property Council group executive, national policy and advocacy, Mike Zorbas.
“HomeBuilder stimulated greenfield development, kept hundreds of thousands of people in jobs, generated tens of billions of dollars in economic activity and helped more Australians own their own home.
“This year, our focus is on state government action that gets more cranes in the sky, boosts jobs and builds confidence.”
While HomeBuilder drove customer preference towards detached homes, the Property Council will spend 2021 championing policies that stimulate apartment development, Zorbas says.
“We’ll also be focused on removing or reducing state government foreign investor surcharges so we get capital flowing back into the market while we plan for population growth to return. These charges are punitive and prevent international investment in Australia’s cities.”
The Property Council will also champion state and local government planning reforms that “speed up approval processes so more people can get roofs over their heads”.
Urbis’ Planning to Prosper report, commissioned by the Property Council and released in September 2020, identified three ‘quick wins’ that could reduce approvals process delays and deliver more housing: transparent process around re-zonings; accountability of agency referrals; and simplification of assessment processes.
If governments implemented just one reform identified in Planning to Prosper, each year the Australian economy could gain up to 39,200 additional jobs and $5.7 billion in added value.
“Housing development is a key driver of Australia’s economy, delivering $136 billion in value and employing nearly one mission people,” Zorbas adds.
“The success of the HomeBuilder grants program demonstrates the power of residential construction to drive economic activity, create jobs and get more people into their own homes. Our challenge is to maintain the momentum in 2021.”