Territory falls almost 80 per cent short of ambitious housing target

Two key industry leaders have called for change as the Territory falls ‘starkly’ short of its housing construction targets.

The Territory Government has copped a brutal warning about its housing construction targets by two leading industry heads.

Property Council NT’s Ruth Palmer and Housing Industry Association’s Luis Espinoza have delivered a double dose of bad news as the Territory languishes woefully behind its 2029 commitment to build 11,427 new homes under the Commonwealth’s national housing accord.

Ms Palmer pointed to Australian Bureau of Statistics figures that showed only 122 homes were delivered across the Territory in the September quarter, a whopping 78.6 per cent behind the quarterly target of 571 homes.
This compares to Victoria, which built 15,316 houses during the same period.

Ms Palmer said urgent action to accelerate the rollout was required to address “a growing housing crisis in the region”.

Property Council NT executive director Ruth Palmer

“The Northern Territory’s performance is deeply disappointing,” Ms Palmer said.

“At a time when the Territory is grappling with housing shortages, failing to meet these targets further exacerbates the national housing crisis.

“We need immediate, co-ordinated efforts to ensure Territorians have access to affordable and appropriate housing.

“Three months into the accord, the Northern Territory’s lagging progress is a stark reminder that urgent reforms are needed to achieve these ambitious targets.”

Among other measures the Property Council NT proposed is fast-tracking urban infill projects, streamlining approval processes and addressing critical labour shortages.

HIA’s Luis Espinoza said the challenge of meeting housing construction targets is made tougher through a lack of skilled construction workers.

Executive director of the Housing Industry Association, Luis Espinoza. Picture Julianne Osborne.

“The construction industry continues to be battered by over regulation, levies and taxes, cost of living pressures and part of a housing crisis that shows no end in sight,” he said.

“But let’s just say that housing was to become affordable for those wanting to enter the market and demand becomes too much to handle for the industry? Who will build those houses and who will provide the infrastructure?

“The only way to attract more young people into apprenticeships and traineeships is making it more attractive pay and ongoing incentives while they are employed.

“We need to change our thoughts on apprenticeships.

“It should not be your last option, it’s not simply for those dropping out of school.

“You don’t have to be on the tools forever unless it’s what you want.

“They’re rewarding careers if you work hard and it offers a vast list of options.”

Federal Infrastructure Minister Catherine King said $10,000 federal government apprenticeship subsidies will start in July.

She spared the Territory government from any blame for the shoddy rollout, putting it squarely on the previous federal coalition government.

“We know this is an ambitious and big target, but this is after a decade of neglect,” Minister King said.

“In the two-and-a-half years we’ve been in government we’ve invested a huge amount to get housing and get housing policy construction moving, including $10,000 for apprenticeships.”

Since it was elected last August, the Territory government has introduced the $50,000 HomeGrown Territory grant and raised the payroll tax threshold by $1m to $2.5m.

The HomeGrown grant has had more than 320 applications.

Treasurer Bill Yan predicted the grant would significantly grow the Territory economy to the tune of $197 million through the 650 new home builds and 414 jobs created.

“This absolutely confirms the ship is changing course, and our HomeGrown Territory grants program is delivering positive change to our economy,” he said.

Originally published as Territory falls almost 80 per cent short of ambitious housing target