Authorities currently face the challenge of setting policies that will not only help home building tick over in the current downturn, but also keep the sector sustainable in the longer run while not putting too heavy a burden on the public purse.
The state government mandates that every council area should have four years of approved lot supply to ensure that the target of an additional 30,000 dwellings needed per year, every year, are delivered in south east Queensland.
The UDIA said against the benchmark of four years, approved lot supply on the Gold Coast has 1.7 years of supply, the Sunshine Coast 2.4 years, and Redland City 2.5 years.
Brisbane City and Moreton Bay Region are both currently at 3.7 years’ supply.
Nationwide, the housing pipeline has shrunk dramatically, due to mobility restrictions and slumping migration as a result of the Covid-19 pandemic which has tempered demand.
In its statement on monetary policy released on Friday, the Reserve Bank said fiscal and monetary policy measures had helped reboot conditions for detached residential construction, in the near term.
Across September, new home loan commitments rose 5.9 per cent to $22.5 billion, marking the fourth straight month of increase and the highest monthly total since March 2017, when the figure was $22.6 billion.
Building approvals—a key indication of the new housing pipeline—jumped 15.4 per cent to 15,827 in seasonally adjusted terms.
“Survey measures of new orders for detached homes have increased, although sales of greenfield land and new homes have moderated a little following a period of strong demand driven by policy measures,” the RBA said.
“The time limits to qualify for Home Builder have caused some builders to reach capacity for the remainder of the year.”