Property Council Group Executive, Policy and Advocacy, Matthew Kandelaars said the report rightly identifies planning restrictions, regulatory complexity and approval delays as major contributors to the nation’s housing shortage.
“The Productivity Commission has put its finger on the problem. Australia has spent decades layering new rules, restrictions and processes onto housing delivery while expecting affordability to magically improve,” Mr Kandelaars said.
“We’re building homes today at half the productive rate than we were 30 years ago, which is proof you cannot regulate your way to cheaper housing while simultaneously making it harder to build.”
The Commission’s proposals include allowing three-storey housing in residential areas, increasing housing around transport hubs, reducing unnecessary planning restrictions and simplifying development assessment processes.
Mr Kandelaars said housing supply and affordability would remain under pressure unless states and councils embraced a culture of ‘yes’ with a more permissive approach to housing development.
“The nation’s housing targets will not be achieved by minor tweaks around the edges. We need planning systems that start from a simple principle – if a proposal meets the rules, it should be approved quickly.
“The biggest costs facing housing delivery isn’t just construction. It’s delay, and the uncertainty brought by red-tape and the $4 in every $10 that goes to taxes and charges across all tiers of government in the cost of a new home.”
The Property Council supports the Commission’s focus on reducing unnecessary duplication, streamlining referrals between government agencies and reviewing regulations that add cost without improving safety or housing outcomes.
“We will continue to shine the spotlight on post-approval bottlenecks, and the culture and capacity of our state utility providers and local governments.
“Governments now have a choice. They can keep defending the status quo, or they can get serious about reform and start treating housing supply as a national economic priority.”
