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The government’s ambitious target of building 1.2 million homes across the country by 2029 is already off to a rough start, with HIA claiming approvals are “nowhere near target.”
In fact, a recent statement from PropTrack’s senior audience analyst Karen Dellow said: “New approvals need to hit an average of 20,000 per month to reach the government’s 1.2 million new homes target by mid-2029.
“So far, they have been averaging 14,800 per month since the start of the financial year and are showing no signs of increasing to the monthly levels needed to reach the goal. However, approvals have been trending upwards on a monthly basis since March, although only by an average of 2 per cent a month.”
Some states are introducing policies to rectify these problems to greater effect than others. State governments have significant sway in pushing development projects along.
“While local governments are responsible for land use plans and development approvals, state governments spearhead city planning and the provision of housing-enabling infrastructure. As a result, they are crucial to confronting the prolonged structural housing supply issues that must be addressed nationwide,” said HIA.
According to HIA, the states with the highest housing policy score are:
- South Australia (9/10).
- Western Australia (8/10).
- Victoria (6/10).
- Tasmania (6/10).
- NSW (6/10).
- Queensland (5/10).
- Northern Territory (5/10).
- ACT (5/10).
The introduction of planning reforms and quick approvals are what separate the high performers from the bottom.
According to HIA, South Australia is leading with innovative technology such as AI to streamline processes, as well as stamp duty removal for first home buyers.
Further, a strong housing roadmap and investment in training and developing 30,000 new training places for tradies over the next five years with 11 per cent more funding for short course programs are helping bolster the industry.
“Governments across the country are making announcements aimed at improving housing supply and it is challenging to determine which policies will genuinely improve housing supply from those that are disguising new taxes,” said HIA senior economist Matt King.
“South Australia and Western Australia both received scores significantly higher rankings, with decisive planning reforms, streamlined development approvals, and a strong focus on land release.
“Despite these steps forward, neither South Australia nor Western Australia are on track to build the number of homes required to meet their contribution to deliver on the government’s 1.2 million homes target.
“This Report highlights the need for comprehensive policy reforms across planning and zoning, financial settings, taxation and skills development. Planning approvals need to be quicker in order to reduce the price of shovel ready land. The administrative processes required to bring land to market add significantly to the cost of a new house and land package, and new apartments.”
[Related: Housing target continues to fall short]
