Approvals is one thing, completed houses is another
Property group says 'real test is whether projects can move through feasibility, financing, construction and completion'.
A MODEST rise in building approvals numbers is not enough to deliver more homes, according to the Property Council of Australia.
New Australian Bureau of Statistics data released this week show total dwelling approvals rose 7.2 per cent in June to 18,328 dwellings, driven by a 17.8 per cent increase in private sector dwellings, excluding houses, to 7138 dwellings.
Matthew Kandelaars, Property Council group executive policy and advocacy, said the increase was encouraging but the focus must now be on ensuring projects can move from approval to construction and completion.
“Approvals are an important indicator of future activity but they are only the first step in the delivery process,” Kandelaars said.
“The real test is whether approved projects can move through feasibility, financing, construction and completion.
“Today’s increase in approvals is welcome, particularly for higher-density housing, but approvals alone do not build homes.
“Every project still needs to stack up commercially before a shovel goes in the ground.
“Shifting tax settings, rising costs, workforce shortages, infrastructure constraints and regulatory complexity continue to place pressure on housing delivery across the country.”
Kandelaars said the recently released Productivity Commission interim report on housing supply regulation had reinforced concerns long raised by industry about the cumulative impact of planning restrictions, approval delays and infrastructure bottlenecks on housing supply.
“The Productivity Commission has confirmed what the industry sees every day – when projects become harder, slower and more expensive to deliver, fewer homes are built,” Kandelaars said.
“Planning reform is important, but it’s only part of the solution.
“Infrastructure, regulation, tax settings, investment settings and construction costs all influence whether projects proceed.
“Australia does not have a shortage of interested investment capital. It has a shortage of feasible projects.”
