UDIA (VIC)

Executive Director of the UDIA (VIC), Tony De Domenico said, "The organisation acknowledged the Victorian Government had taken some steps, such as lowering stamp duty and working to provide certainty in planning had assisted, however, the depth of the current development industry problems needed some major game changers."

The plan was released this morning following the UDIA major research breakfast where leading property economist Colin Keane, Director of Research4 Pty Ltd and the National Land Report, revealed that the average first home buyer is paying on average 30 percent more for a block of land and getting 36 percent less land than during the height of the property boom.

Mr De Domenico said, "A Housing Affordability Commission would require a 'Housing Affordability Impact Statement' for any proposed changes to guidelines, practice notes, regulations and legislation."

Mr De Domenico said new home buyers pay these taxes in their purchase prices, so they are really new home taxes, making home ownership unachievable for many".

"At present there is an ineffectual Housing Affordability Unit in DPCD. Replacing it with a Commission, reporting directly to the Planning Minister, but with a wide mandate over all government policy, will ensure a cultural change towards lower costs."

Summary
Urban Development Institute of Australia (Victoria)
10 Point Plan to Provide Land and Housing at Affordable Prices

2a) Complete structure planning for 50,000 lots by June 2012. Ensure the land is developable, and issue planning permits and precinct structure plans concurrently.

2b) Establish a body or empower the GAA to ensure coordinated and timely development, infrastructure, services and facilities.

3. Implement the findings of the Underwood Review and consult with the industry over draft changes to the Planning and Environment Act early.

4. Commit to infrastructure projects close to high population growth areas to promote confidence and employment. Ensure the Victorian budget funds a programme of infrastructure works that meets demographic projections.

5. Give the GAA more planning powers to ensure balanced planning outcomes; remove DSE's ability to veto land use planning proposals.

6a) Implement code assessable infill development to allow reasonable development on infill land and lift zone restrictions.

6b) Require local governments to prepare plans in the next 6 months showing how they will cater for growth in the next 5 years, adopt the plans into the planning scheme then allow development under the scheme as-of-right. Where councils fail to do so, the state should nominate the areas.

7. Review the cumulative impact of recent cost imposts on the development industry. Reform the GAIC and "developer contributions" so that, combined, they are no more than $10,000 per lot in Growth Areas.

8. Increase funding to VCAT to reduce the delay to under 3 months.

9a) Investigate ways to fund shovel-ready infrastructure, such as state-backed infrastructure bonds, tax increment financing and public-private-partnerships.

9b) Allocate funds to VicRoads for Growth Area planning and construction.

10a) Immediately reintroduce a properly funded Development Facilitation Unit for major developments and establish a "front door" for the development industry within DPCD.

10b) Establish a Housing Affordability Commission to review all proposals from government affecting land and housing costs. Require a Housing Affordability Impact Statement for any proposed changes to guidelines, practice notes, regulations and legislation.

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