Seasonally adjusted ABS dwelling completions fell -0.4 per cent to 43,816 in the March quarter with new private sector houses falling -0.6 per cent. While the year on year comparison found total completions up 0.8 per cent and higher density housing completions rising 10.5 per cent, the pace of delivery remains well below what is needed to meet Australia’s housing targets.
Property Council Group Executive Policy and Advocacy Matthew Kandelaars said the latest figures highlight why governments must remain focused on delivery.
“Australia simply does not have enough homes, and the only way to improve affordability is to build more of them,” Mr Kandelaars said.
“The slight quarterly decline highlights the ongoing challenge facing housing delivery across the country and the need to remove barriers that are slowing projects.
“Australia produces around 400 dwellings for every 1,000 people, well below the OECD average of 500 and we continue to face a significant shortage of all forms of housing.”
Mr Kandelaars said recent planning reforms across several states were a welcome response to the National Housing Accord, but planning reform alone would not solve Australia’s housing shortage.
“Planning reform is essential and no homes are built unless commercially feasible. That requires capital, finance, infrastructure, skilled workers and planning systems that give investors confidence that projects can be completed. Today’s figures show there are too few of those projects.
“The property sector pays around $130 billion in taxes each year, while taxes and government charges can account for close to 40 per cent of the cost of a new home.
“At a time when Australia needs more homes, we should be removing barriers to investment, not creating new ones. Proposed changes affecting discretionary trusts and SMSF investment risk reducing the pool of capital available to finance the delivery of residential, commercial and industrial projects.
“The real test is delivery. We need policies that support investment, improve project feasibility and give industry the confidence to build more homes.”
