Approvals drop amid home crisis

BUILDING approvals in Tasmania were down more than 5 per cent in the year to March, despite housing supply and affordability being an issue across the state.

Australian Bureau of Statistics and Property Council of Australia figures have revealed that building approvals were down 5.1 per cent between March 2017 and March 2018.

Property Council executive director for Tasmania Brian Wightman said delays in the permit process for new housing was contributing to the drop in approvals.

Mr Wightman said delays in processing detailed subdivision designs and building permits were affecting the supply of housing into the market.

He said the delays were also resulting in increased costs to developers, which flowed on to land and housing prices.

“The substantial delays and onerous requirements for the necessary approvals beyond the planning permit are having a substantial impact,” he said.

“Development applications should trigger a referral process which allows TasWater, TasNetworks, NBN Co and the Land Titles Office to forward plan their work schedules to avoid design delays and supply problems which our members currently experience.”

Mr Wightman also called on the State Government to take responsibility for housing supply by legislating for regulatory time frames.

“The State Government should amend the Local Government and Building Acts to restrict the maximum approval time for ... building and subdivision approvals to the same 42 days as planning applications, or be deemed approved,” Mr Wightman said.

Master Builders Tasmania executive director Michael Kerschbaum was surprised by the drop and put it down to two factors.

“I put the figures down to the March [State] Election, where I suspect there was an element of uncertainty around the election,” he said.

“And we have seen a lot of land supply constraints. There are only limited opportunities for land releases.”

Mr Wightman said he supported new houses being added to the Housing Tasmania stock.

“Inner-city residential development should occur to offer diversity to the market,” he said.