UDIA'S 6 STEP PLAN TO STIMULATE PROPERTY AND CONSTRUCTION
This week the Urban Development Institute of Australia (UDIA) released a 6 step plan outlining six strategic steps governments can take now to stimulate the property and construction industry.
The full report can be viewed here – the six immediate steps being promoted to the Commonwealth Government are:
Release a second tranche of the First Home Buyers Deposit Gap Scheme, but exclusively geared towards new stock.
Introduce guaranteed deadlines for major projects currently caught in the EPBC assessment regime.
Pull forward projects on the Infrastructure Australia priority list that have the dual benefit of stimulating infrastructure development and housing construction.
Incentivise the states to cut assessment times in half for major project approvals and remove regulatory barriers to ‘shovel-ready’ housing projects.
Continue the partnership between governments, financial regulators and financial institutions to ensure a continued flow of credit to homebuyers and mortgage holders – and APRA reconsider the loan serviceability buffer in its residential mortgage guidance.
Commonwealth and states to expand stamp duty exemption schemes, roll back barriers to foreign investment and boost build-to-rent to underpin new land release and off-the-plan stock.
This proactive approach from the UDIA demonstrates the commitment from the industry to effectively work with government to ensure the health, safety and livelihoods of the 1.4 million+ workers who are employed by the property, development and construction sector.
In a joint letter to Kerry Thompson, the Chief Executive Officer of the Municipal Association of Victoria (MAV), the UDIA and Master Builders Association outlined their commitment to collaborate in numerous ways in order to address the COVID-19 pandemic.
“The building, construction and development industry is a fundamental plank of the Victorian economy. It employs hundreds of thousands of Victorians and contributes to over 45% of the state’s taxation revenue. At the time of writing, the industry remains open and operational and the Victorian Government has classified building and construction sites as an Essential Service.”
In the letter, the UDIA and Master Builders Association urges the MAV to consider a temporary extension of worksite hours.
“We see this as a critical measure available to local government authorities that would assist in keeping worksites operational, while also supporting building industry operators to implement social distancing measures - which by consequence, is leading to less individuals being able to work on site at any one time.”
The Mutual Equity tea, see's this as a strong driver for economic support and we expect many more stimulus measures to be announced across Banking, Retail, Hospitality and manufacturing.