Big changes coming to Victorian homes in 2024: Buyers racing to beat builders’ toughest year in a decade

Victoria’s biggest builder has revealed how new government controls will change the way houses are built in 2024, and why homebuyers are racing to beat the changes.

One of Metricon's two Victorian seven-star display homes, the Santorini 32 Nordic in Sunbury, shows what buyers can expect from May 1 next year.

Victorians are racing to beat a series of costly new home requirements slated for next year amid warnings some builders will hang up their tool belt rather than embrace the change.

Homeowners considering an extension could be forced to add costly double glazing and solar panels and even shift interior walls to make corridors wider under new rules.

But the nation’s third biggest insurer has warned with growing risks to homes from wild weather, making them more sustainable and better able to withstand extreme conditions is now a priority.

RELATED: Melbourne on track for wrong home boom, new housing forecasts reveal

John McGrath: Melbourne’s slower rebound makes it a desirable spot to invest now

Melbourne bedrooms cost almost $500 a week to rent as rental crisis bites

From January 1, all new planning approvals for housing developments will require them to be fully electric — though existing housing estates will be allowed to continue building homes with gas connections.

On May 1, the National Construction Code (NCC) will require new homes be built to a seven-star energy efficiency rating and to accommodate better accessibility. Victoria will transitioning from its current six-star standard.

Housing Industry Association Victorian executive director Keith Ryan said the industry was facing its most significant period of change in at least a decade, with additional impacts likely from a government review of domestic building contracts as well as the prospect of reviews to domestic building insurance and the Building Act.

How new homes will be different in 2024. Picture: Herald Sun

“It’s going to be builders’ biggest year in at least a decade, and probably more,” Mr Ryan said.

He said homebuyers would be most affected by the energy efficiency and accessibility changes, with the prospect of house building prices rising $10,000 or more — though some builders might look to absorb the hike.

The state’s largest builder, Metricon, has reported “heightened interest in securing homes with deposits before the scheduled changes come into effect”.

Metricon national product development manager David McKibbin added that demand for energy rating service consultants could prove a “pain point” from May onwards, while double glazing and energy efficient glass providers could also run into supply issues.

Supa Group Constructions director of building Matt Howard said those hoping to renovate or extend would be faced with a choice between keeping their plans small, or taking steps to bring their whole home up to code.

Homeowners planning a renovation could be caught up in cost increases as codes change.

“The changes to the NCC won’t impact most extensions, as most of our work is a second-story extension built above the existing home,” Mr Howard said.

But improvements that create more new home floorspace than the old home had will need to comply with the code by overcompensating in the new part and potentially retrofitting double-glazing to old windows.

Owners of properties with narrow hallways and entries might need to shift interior walls to create room for wider doorways and corridors under the accessibility requirements.

Builders Collective president Phil Dwyer warned that between the state of the industry and next year’s changes, some builders would hang up the tool belt instead of upskilling.

“I think there’s been quite a few who have already walked away from the industry this year,” Mr Dwyer said.

New seven-star homes like Metricon’s Santorini 32 Nordic in Sunbury will feature most of their glazing in the main living areas, and less in bedrooms.

But insurers have warned more sustainable homes can’t come soon enough, with Allianz data showing 43 per cent of home insurance claims made between May 2022 and April 2023 were a result of an extreme weather event.

The firm’s corporate governance and sustainability general manager Sema Whittle said while it was unlikely sustainable homes would get lower premiums, materials and home design were key ways to avoid claims from extreme weather.

“For example, by choosing the right material when building or renovating or regularly maintaining a property you can help make it more bushfire proof,” Ms Whittle said.

“And there are also fire retardant paints that make the home less vulnerable to catching on fire.”

Home's rooves will become increasingly important as greater energy efficiency is sought.

The firm has partnered with the Green Building Council of Australia to launch GreenSpecs.com.au, in a bid to encourage customers to find ways to make their homes more sustainable and resilient to wild weather.

Energy bill slashing and climate change fighting advice includes installing heat blocking blinds and curtains, increasing insulation and swapping old shower heads for modern ones.

---

Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.

MORE: Where rate rise pain is hitting hardest and how to beat it: PropTrack, DFA

Most undersupplied Melbourne markets revealed, calls to cut ‘investor-bashing’ policies

Maroondah homeowners up in arms over council’s proposed heritage reforms