Calls to slash red tape amid housing crisis

The Queensland government’s emergency housing summit kicks off today (20 October), welcoming a wide range of peak industry bodies, non-government providers and private sector stakeholders to explore solutions amid the state’s housing crisis.

The summit will address critical issues including unlocking land and housing supply, fast-tracking social housing as well as the need for collaboration on housing by all levels of government and the private sector.

The state’s crisis comes following the pandemic where it saw the country’s highest interstate migration rates, as well as the climate disasters and labour constraints, which have sparked a rental crisis and housing supply shortage.

The Property Council of Australia’s report showed that Queensland’s population grew by almost 750,000 between 2011 and 2021, with close to 90 per cent in South-East Queensland.

In addition, the supply concerns have been made more challenging as global factors have fuelled construction delays and increased costs, contributing towards construction collapses.

The roundtable will bring together the Premier, Deputy Premier as well as the public works, communities and housing ministers with the Brisbane lord mayor and the LGAQ. 

It will also involve key non-government stakeholders including Q Shelter, QCOSS, the REIQ, Property Council of Australia, HIA, Master Builders and the Planning Institute of Australia, among others.

In a submission to the Palaszczuk government, the Housing Industry Association (HIA) executive director Michael Roberts said Queensland had changed dramatically since the COVID-19 pandemic fueling a housing crisis.

“Queensland is now facing some of the greatest challenges to housing affordability and rental availability that the State has experienced in its history,” Mr Roberts wrote in a submission.

Mr Roberts said policies around supporting more people into owning their own home was crucial.

“In most instances, a first-home buyer represents an individual or couple that will cease competing in the rental market for life,” he said.

“This alleviates pressure on the housing market, resulting in less competition for those in dire need of rental accommodation.”

The group is concerned that, if not addressed, ongoing industry challenges, major changes to construction requirements, the “predicted sustained reduction in dwelling commencements”, constrained land supply, and local government “reluctance to embrace infill development” will combine to further constrain supply and make housing even less affordable.

As such the HIA has put forward three key recommendations to the state government, including:

1. Creating and maintaining a strong pipeline of new residential land by bringing forward the planning and development of potential future growth areas identified in the SEQ Regional Plan
2. Encourage infill development opportunities, due to the current eight to 10-year lag time associated with bringing greenfield land to the market
3. Develop and implement a statewide housing code, to remove red tape from the planning system

Weighing in the Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella said the “sad reality” was there was no overnight solution to address the serious housing supply issue.

“Given the immediate need of the crisis, it was time for the government to try taking a carrot rather than a stick approach to maximise existing shelter and restore property investor confidence in our state”.

Ms Mercorella has called for “stamp duty relief to downsizing over 55’s”, more choice for first home buyers by extending the First Home Owners’ Grant to established properties, as well as a “new loan deposit guarantee scheme” for first home buyers and key workers. 

“Stamp duty reductions could also be offered to long-term investors in exchange for a minimum time commitment to keep an investment property on the long-term rental market,” she said.

She added that consideration should be to incentivise people with a holiday home, or investors with a property on the short-term letting market, to bring these properties on to the long-term rental market.

“Equally, there are opportunities to unlock new areas for housing, such as rezoning underutilised commercial spaces that are sitting vacant,” Ms Mercorella said. 

“All these incentives are examples of immediate ways we could start to unlock existing housing today which would help alleviate some of the pressure on the rental market.”

Given the current construction crisis, the REIQ also supports establishing innovative forms of house manufacturing in the state, looking at concepts such as prefabricated modular homes and utilising construction materials generated through the circular economy that aren’t subject to supply chain pressures.

Housing summit to tackle crisis

Premier Annastacia Palaszczuk said the housing summit was a “first step” towards addressing these issues, but added it needed a “national” approach. 

“Many of the causes of the increased housing costs are national and need national solutions,” Ms Palaszczuk said.

She said that all levels of government have a “role to play in improving the current housing situation”, and has pushed for local governments to speed up and amend approval processes.

The summit comes following the state government’s launch of the Housing Supply Expert Panel, which among other things is tasked with providing advice to councils to address housing supply.

For example, on Tuesday (18 October), Planning Minister Steven Miles announced the approval of 20 amendments to the Gold Coast City Plan expected to allow the council to approve hundreds of housing lots.

Mr Miles said the approval will fast-track development approvals across the city.

“Getting the City Plan right is crucial to cater for population growth, ensuring the Gold Coast remains a liveable place for the community,” Mr Miles said.

“That is why I have approved 20 changes to the City Plan proposed by Council, including the Upper Coomera investigation area, which will deliver around 730 additional dwellings in the Gold Coast.

“Now more than ever, it is important that our planning schemes are regulating development that delivers essential needs of the community like affordable housing.”

The proposed amendment package includes a number of changes in response to submissions received during the four rounds of public consultation.

The government has invested in the construction of over 7,400 new social and affordable homes as part of its $1.9 billion Queensland Housing Strategy Action Plan, as well as established a $1 billion housing investment fund and invested $200 million to unlock housing supply.

[Related: Qld deputy premier expands housing supply expert panel]