Ahead of the Federal Budget this week, the Australian Government’s drip-fed announcement that an additional $11 billion will be invested in housing is a “much-needed boost”, according to the industry.
At the weekend, the Government announced its $1-billion injection into getting “homes built sooner”, which will fund the development of essential infrastructure, covering roads, sewers, energy, water and community infrastructure.
In addition, a $9.3-billion five-year National Agreement on Social Housing and Homelessness will provide crisis support and build and repair social housing.
A further $1 billion will be allocated for crisis and transitional accommodation for young people, as well as women and children fleeing domestic violence.
This was added to announcements made last week that allocated $90.6 million to boost the number of construction workers, including 20,000 new fee-free places, and new regulations that will require universities to increase their supply of student accommodation.
The measures were met largely with support across the industry this week.
Property Council chief executive Mike Zorbas said the additional funding would support reaching the national 1.2-million new-home target by 2029.
“We strongly welcome this agreement and the additional funding. Hitting the housing targets now hinges on concerted federal, state and industry partnership on rezoning, faster approvals, more skilled workers and last-mile infrastructure,” Zorbas said.
The PCA called it an “historic” announcement for student accommodation.
“These projects are the fastest way to add housing choice for young people and take pressure off the broader rental market,” Zorbas said.
Master Builders Australia chief executive Denita Wawn agreed.
Requiring universities to increase their supply of student accommodation was an excellent example of how ministerial portfolios should be working together, she said.
“With a strong funding stream now locked in, governments need to turn their minds to reducing the other barriers to housing supply like reducing the cost of building and time it takes to build.
“Workforce shortages, low productivity, industrial relations and planning reforms all continue to drag down our capacity to deliver the 1.2 million homes over the next five years.”
The announcements are the latest to emerge ahead of the Budget, with the Federal Government also suggesting that it would review proposed build-to-rent legislation.
