National Housing Accord: Can Australia really build 1.2 million homes by 2029?

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The first major hurdle to building enough new homes across the country is that councils set their own approval targets and are under no obligation to meet them.

It’s exactly 11:57am and clouds overhead are threatening rain when a group gathers at the small light rail platform at Lewisham West to greet NSW planning minister Paul Scully.

It has a cafe, a handful of commercial spaces and a small community building designated for regular events like board game nights, singing classes and bicycle workshops, that is run by an offshoot of the developer. Every second Sunday, hundreds of people gather for the markets with live music and stalls selling flowers, fresh food and homewares, set up in the public square.

“People are concerned about their own self-interest and if you want to put it crudely, the ultimate concern the NIMBY is, ‘is it going to affect my property value?’ And the perception will always be ‘yes, it will, therefore I’ll object’. If people think it’s going to improve the amenity of the area and increase their property value, they’re less likely to object,” Pradolin says.

He said this was especially the case in Sydney where targets have not been ambitious and “not enforced in any significant way”. This has led to some of the best-located councils having among the least ambitious targets and worst performances when it comes to meeting those targets. In Victoria, the statewide average timeframe for a DA to be resolved is even longer, at 168.7 days. In the last five years, the average time between submitting an application and receiving an outcome from council has blown out by an extra 24.6 days, according to government data.Pradolin says, as well as councils being chronically understaffed, they often lack the experience and expertise around economic development.

only lending to off-the-plan apartment projects if they received pre-sale commitments for more than two-thirdsIn 2023, the number of new apartment dwellings built across the capital cities represented a 4 per cent increase on the year before, but an 11 per cent decline on the decade average, and is 40 per cent lower than the peak in supply when 80,093 dwellings were completed in 2017, according to the Urban Development Institute of Australia.

The Victorian government, similarly, has set itself the goal of directing 70 per cent of housing growth to established areas. But Planning Minister Sonya Kilkenny said last year it had failed to reach the target so far, with just 56 per cent of new dwellings since 2014 built in established areas.

 

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