With the results from the
National Land Survey Program (NLSP) showing that Melbourne achieved a share of
more than 40% of all greenfield lot sales across the major capital cities in 2009-10,
and the latest March 2013 quarter survey highlighted that Melbourne's share had
fallen to just 15%, the recovery in the development industry is forecast to be
gradual and not happen overnight.
However, there is little doubt
that the expansion of the new house and land market, apartment and urban renewal
projects in Victoria in the next three to five years will be a major key to Victoria's
economic recovery and employment because of the multiplier effect generated by
the land development and house building industry.
Behind every new home stands
the employment of a range of trades people, employment networks of suppliers and
ultimately the retail sector with homes requiring white goods, furniture and services.
The new house and land market, apartment and urban renewal is a major
area of economic activity for thousands of small businesses across Victoria in
metropolitan, regional and country areas.
The industry also underpins
business for the range of professional skills in engineering, town planning, environmental
sustainability, and water management, landscape design, banking, sales and marketing.
The Victorian development
industry which directly employs around 310,000 full time employees, contributes
around 12 per cent of the state's gross domestic product and $4.6 billion in taxes
to all tiers of government, is looking to create urgently needed jobs and requires
investment and projects in the pipeline.
The recent re-alignment of
the first home buyers grant by the Victorian Government to the construction of
new homes and the reduction of stamp duty recognised the role the development
industry plays in the economy by focusing funds where the maximum number of jobs
will be created.
On the positive side Charter
Keck Cramer Director Strategic Research, Robert Papaleo earlier this
year told the UDIA research breakfast that with the new first home buyers
grant combined with low interest rates, the industry should experience moderately
higher sales activity through the second half of 2013.
The forecast of Victoria's
population growing at over 90,000 annually will also add to the expanding
of market opportunities.
Recent reviews of the planning
system and the announcement of major precincts such as Fishermans Bend and the
proposed construction of the East West Tunnel by the State Government will also
assist in stimulating activity.
During this period of recovery
with the urgent need to create economic development, it is vital the traditional
roadblocks to the development industry are minimised.
These include confused and
uncertain planning processes, long delays of up to years at local government level
and conflict between Federal, State and Local Government planning regulations.
These roadblocks threaten
housing affordability and ultimately have to be paid for by the first home buyer
as the invisible red tape tax on first home buyers.
Media
Enquiries:
Ron
Smith, Corporate Media Communications, UDIA (VIC) - Mobile: 0417 329 201
