The shortage of housing in Victoria will be addressed by the State Government which believes another 2.2 million homes will need to be built over the next 25 years. Source: Timberbiz
This will include an increase in townhouse builds, the release of more land under a 10-year Greenfields Plan, an overhaul of the planning system which include the ability for developers to bypass local council and VCAT restrictions and reducing the financial burden.
Jeroen Weimar, Deputy Secretary of Housing Implementation, Department of Premier and Cabinet, told this week’s Timber Construct 2024 conference in Melbourne the State Government recognized there was some financial levers “we’ve got to pull up as well”.
“I’m sure the Treasurer and Premier will talk about that in the months to come,” Mr Weimar said.
Mr Weimar, who was Victoria’s COVID-19 response commander, was appointed to oversee the Victorian government’s housing policies in February this year.
“I think government has an opportunity to do much more, particularly around land, around planning and around funding,” he told the conference.
“And what the government asked me to do six months ago; come in, kick some tires around, make sure we’re actually doing the right things, talk to industry and engage in industry, and make sure we’re lining things up in the right way.
“So that’s why I’m here. I’m here to try and get things moving and to work with you in partnership to do so.”
Mr Weimar was introduced at the conference by Frame and Truss Manufacturers Association CEO Kersten Gentle who told a session on the housing shortfall that if government wants faster, more affordable housing, firstly they need to streamline their policies and look at the taxes charged to the industry.
“If Government’s wants to bring down costs they need to streamline the planning process and look at government taxes, as it’s estimated that up to 40% of the cost to build a house is government taxes,” she said.
“Simple steps such as changing townhouses from Class 2 to Class 1 could save up to $20k and ensure faster delivery.”
Mr Weimar conceded that given the challenges facing the building industry “it’s been a really hard time”.
“But what I’d like to talk about this morning is that whilst we might be feel like we’re sometimes in the gutter, I think we are looking at the stars.
“I think there are opportunities and reasons for us to be optimistic about the months, years and decades ahead,” he said.
“We need to start working into our townhouse market.
“We need some looking at our mid-rise apartment particularly that four to 10-story market in around a number of locations.”
Mr Weimar said that the Government would, in the coming months, published its 10-year Greenfield Plan.
“We know the planning system is slow and cumbersome, and we know it’s uncertain,” he said.
“So, two things we’ve done; one is that any developer looking to develop a housing project of over $50 million gross value can come straight to the Minister.
“We’ll go through an accelerated planning pathway that takes out local council, the VCAT and all the other dramas that developers have to go through.
“But what we’re also looking at is what we know about activity centres.”
Mr Weimar said that there were 10 locations across Melbourne at the moment, including Frankston and Camberwell, where the government believed it had capacity to significantly uplift zone controls to encourage four story development, six story development, and eight story development.
“We’re going to go out to consultation in a couple of weeks. They’ll be done by the end of this year, which will ensure that people who own land in that space can now start to significantly increase the value of that land by going further up than they could before, knowing they won’t get stopped by VCAT,” he said.
“They won’t get stopped by local council concerns.”
“So, our job in a planning space is basically faster, clearer and simpler. We’ll put out a plan for Victoria that says, here’s a bunch of homes needed to get built, and here are the changes the planning system that will make that happen.
“And we will need to deal with our public housing towers, 44 of them around Melbourne.
“We’ve committed to replacing them all within the next 25 years.
“So, we really think it’s time to get on and rebuild those towers,” Mr Weimar said
“Again, a huge opportunity. Not only will that be probably a doubling of the total housing capacity in those precincts, but also very different types of built form coming forward. And finally, a lot of work around the rental space and around building reform space.
“We recognize if we’re going to support the timber industry, if we’re going to support the construction industry, we also need to make sure that our building codes actually make sense, that our building regulator is up to scratch, and we had a few dramas there.
“But I think it’s now in better hands, and we’ve got to make sure that we structure the domestic building contracts in a way that supports the right housing to get built.”
