Melbourne’s development industry has welcomed the government’s roadmap to recovery.
Melbourne’s building industry has welcomed a “vote of confidence” from the Victorian government’s roadmap to recovery.
But they are calling for the government to review renovation and real estate restrictions that will hamstring activity and the construction pipeline until October 26 at least.
They are also calling for federal government intervention to extend the $25,000 HomeBuilder grants scheme for Victorians.
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From September 28 builders will be shifted to a ‘restricted’ work force that will “significantly” increase activity and employment in the sector.
So long as infection numbers continue to decline over the next three weeks, it will end a pilot light phase that has been in place since 11.59pm August 7.
The changes would see builders and specialist tradies working on new houses across the city allowed to move between up to five properties a week instead of three at the moment, though still capped at five people working on site at any given time.
Large construction sites will see worker numbers surge from 25 per cent to 85 per cent.
Larger projects, above three storeys, will ramp back up from 25 per cent of their baseline workforce to 85 per cent — or up to 15 workers, whichever is the higher.
Developers building infrastructure to title land will be allowed to have 20 workers per hectare, up from 10 during the stage-four lockdown.
But renovations at inhabited homes are still banned, with no date yet suggested when they will be able to recommence.
Restrictions will ease further to normal working arrangements, subject to observing social distancing and working from home where possible, at a later stage.
Urban Development Institute of Australia Victorian chief executive Danni Hunter said the changes were a “vote of confidence” after the industry had demonstrated its ability to “keep COVID-19 cases at a minimum, manage and mitigate the risk of any outbreaks on worksites and keep our industry working safely”.
UDIA Victorian chief executive Danni Hunter (left) and Ben Turner, Director, at a Carlton building site in August. Picture: Jay Town.
“This has put the building, construction and development industry in the strongest possible position to be able to get back to work as soon as possible,” she said.
“We have made the strongest possible case for getting back to work and the government is listening and will support our industry and our workforce just as we support the Victorian economy.”
Ms Hunter said it would be a “significant” boost for the industry, but they would seek to have display suites reopened “urgently” in order to ensure a continued pipeline for home builders.
They will also seek an extension to the federal government’s $25,000 HomeBuilder grants in order to shore up jobs into the new year.
Civil works continued during stage-four lockdown at the Orana estate in Clyde North.
Property Council of Victoria group executive for policy Mike Zorbas welcomed the roadmap, but said there was still more work to be done to open up real estate transactions to support the construction sector.
“It takes months for construction and real estate businesses to access government relief schemes; stimulus measures need to be brought forward immediately,” Mr Zorbas said.
“The fact is both the construction industry and the Victorian budget rely on rental and purchasing transactions to create demand and new projects. We will now work closely with the Government on safely getting those settings right as soon as possible. ”
Master Builders Association Victorian chief executive Rebecca Casson said the news was “extremely tough” for other parts of the sector and builders who specialise on home renovations.
Master Builders Association of Victoria CEO Rebecca Casson being tested by Jim Wru (Incolink) as part of industry organised COVID-19 testing. Picture: Glenn Ferguson.
“However, we will continue to work with the Government and persist in representing the needs of our whole industry,” Ms Casson said.
“Our sector has remained safe since March and now we will focus on continuing our proactive COVID-19 measures in line with the Government’s roadmap, with our collective objective being back to full capacity as soon as possible.”
Housing Industry Australia Victorian executive director Fiona Nield said she the changes would see more tradies back at work and greater flexibility for specialist workers.
However, she flagged that it had provided little relief for builders who focus on home renovations who have no clarity on when they will be able to resume working.
“The next stage will be rebuilding the pipeline of lost sales,” Ms Nield said.
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