The Housing Industry Association has raised concerns about the proposed draft South East Queensland Regional Plan (SEQRP) as well as the National Construction Code (NCC).
Did you know that the cost of implementing new National Construction Code specifications that will make it compulsory for every house to accommodate disabled occupants, and to increase energy efficiency standards well beyond what is required in Queensland, will add AUD$20,000 to AUD$30,000 per house?
SEQRP targets inadequate to solve QLD housing crisis
Achieving targets contained in the new Draft South East Queensland Regional Plan (SEQRP) will not solve the housing crisis in Queensland, but the plan does outline valuable steps forward in key areas, according to the Housing Industry Association (HIA).
HIA Executive Director Queensland Michael Roberts highlighted that the Draft SEQRP’s forecast of 34,500 new homes commencing construction per year until 2046 would be insufficient to meet projected demand, let alone catch up on the current housing shortfall.
“In order to address the shortage of housing stock, there needs to be a substantial increase in the supply of new homes over and above what is already being delivered,” Mr Roberts said.
“In 2020/21 the government’s own figures report 34,500 new homes were approved in South East Queensland, and that clearly wasn’t sufficient to meet demand at a time when there was zero migration.”
“This means that building homes at the same rate as we have in the past will sadly continue to exacerbate the acute shortage of homes for decades ahead.”
“Planning to build the same number of homes in the future as we did in the past is not good planning.”
“The only way to solve the housing crisis is to significantly increase the capacity within planning regimes and ensure an adequate supply of land for both green and brownfield development.”
“The capacity of the industry to deliver this volume of homes will adjust if there is a stable and reliable population and economic growth.”
“But Queensland needs to plan for growth not ‘status quo’.”
“It is important to acknowledge there are many elements of the draft plan that are progressive and will contribute to improving supply.”
“In developing the draft plan, HIA pushed for and achieved changes to the plan’s direction on lowering minimum lot sizes, increasing targets for ‘dwellings per hectare’ net densities in new communities and pushing councils to make approval of multiple dwellings easier, relax car parking requirements and allow increased building heights.”
“HIA welcomes the release of the Draft SEQRP and will continue to work productively with [the] government to ensure the best possible outcomes can be achieved in the final plan,” Mr Roberts said.
QLD must follow VIC in delaying massive NCC changes
HIA is calling on the Government to follow Victoria’s lead and immediately delay changes to the National Construction Code (NCC) that will have a huge impact on home building.
Victoria has announced a change in its position, recognising that the industry needs more time to digest and implement the biggest changes to the NCC since its inception that will make every new home more expensive, and less affordable for homebuyers already struggling under the weight of interest rates and material and labour cost increases.
HIA Executive Director for Queensland, Michael Roberts said that Victoria was providing a template for Queensland, recognising the impact of NCC changes in exacerbating the housing crisis.
“Victoria has seen that the midst of a housing crisis is not the time to contribute to a forced increase in the price of all new houses,” Mr Roberts said.
“We have heard from our members that the cost of implementing new NCC specifications that will make it compulsory for every house to accommodate disabled occupants, and to increase energy efficiency standards well beyond what is required in Queensland, will add $20,000 to $30,000 per house.”
“We also know that the cost implications for homes built off-the-ground on stumps, like a traditional Queenslander, mean this style of construction could be consigned to the history books.”
“While we have tried to work with the Government, HIA’s position has consistently been that the proposed changes go far beyond the minimum standard that is supposed to be set under the NCC.”
“Changes are due to come into play in just over three months. The fact is that the industry doesn’t yet have the updated software required to assess energy efficiency, and the government is yet to commence its education program. The evidence is clear that no one is ready for such significant changes.”
“Now with Victoria leading the way, the Queensland Government has a perfect opportunity to change direction to support our industry in the continued supply of quality, affordable homes that is needed over a long period to address the housing crisis without additional impediments being rushed in,” said Mr Roberts.
About the Housing Industry Association
HIA, the voice of Australia’s residential building industry, plays a lead role in advocating the importance of the housing industry to all Australians. Read about HIA’s responses to government policy concerning housing and the home-building industry, and find the latest news and economic forecasts for the sector.