Anthony Albanese’s 1.2m housing target still in play

Anthony Albanese’s 1.2 million new homes target remains in play, as developers, super funds, financial institutions and community housing providers move quickly to access new government funds.

Housing Minister Julie Collins and Queensland Housing Minister Meaghan Scanlon visit a unit complex construction site in Alderney. Picture: Supplied

Anthony Albanese’s target to build 1.2 million well-located homes in five years remains in play, as major developers, super funds, financial institutions and community housing providers move quickly to tap the government’s marquee multibillion-­dollar housing funds.

The Australian can reveal that within a fortnight of the $10bn Housing Australia Future Fund and National Housing Accord Facility opening for applications, some 250 eligible groups and consortiums formally expressed interest in accessing finance amid a construction slowdown.

A large cohort of other interested parties, not currently eligible applicants, have also registered.

With building firms and developers warning of a grim 2024 construction outlook, more than 2300 industry representatives and government officials registered for a January 18 Housing Australia information session held three days after round 1 funding opened.

The virtual briefing was attended by 1800 people representing developers, community housing providers, Indigenous organisations, financial institutions, super funds, governments, building firms, investors, law firms, consultants, not-for-profits and industry groups.

Major developers and financiers exploring their options include Stockland, Lendlease and Tetris Capital.

The flood of interest in the HAFF and NHAF comes as ­surging costs of some supplies ease and building companies hunt for new projects after soaring interest rates dampened housing construction activity.

As inflation moderates and hopes rise of rate cuts in the second half of 2024, Housing Minister Julie Collins said “we know ­capacity is starting to open up in the construction sector, and we want to fill it with the social and ­affordable homes for Australians who need it”.

The Australian last month revealed that almost 1400 construction companies became insolvent between July and December last year, sparking fears that builders under cashflow stress could permanently exit the industry.

Ahead of the year’s first Reserve Bank of Australia board meeting on Tuesday, Ms Collins said new investment facilitated by the housing funds would “be a shot in the arm for our home building industry, supporting tradies and jobs across the construction sector”.

Under multiple funding rounds, with the first call for applications closing on March 22, groups can access availability payments (25-year government-backed payments), concessional loans, and capital grants in limited circumstances.

Funding can support the construction of new homes, purchase of newly built homes, renovation of existing residential dwellings and conversion of commercial properties to residential dwellings.

With the 2025 election clock ticking, the options of newly built homes and renovated properties will likely see social and affordable housing available this year.

The HAFF, which passed through parliament last September after the Greens capitulated following a 16-month standoff, is managed by the Future Fund, with income generated by the housing scheme used to deliver 20,000 new social and 10,000 new affordable homes.

The NHAF, which provides fin­ancing under the national cabinet’s housing accord, is committed to delivering 10,000 new affordable homes.

As the government faces a tight turnaround to deliver 40,000 new homes, Ms Collins said “the response to date shows why the government’s Housing Australia Future Fund was desperately needed, despite other parties voting against it and trying to hold it up”.

“It shows why we fought for the HAFF, and why we’ll continue to fight for strategic, ­sensible housing policy,” Ms Collins said.

Housing Australia chief executive Nathan Dal Bon, a former Treasury official, last year said that some 30,000 dwellings valued at around $20bn could be funded by private investment over a five-year period.

Master Builders Australia chief executive Denita Wawn said new building approvals, lending indi­cators and building materials ­prices data last week “painted a troubling picture for the nation’s housing landscape”.

Ms Wawn acknowledged that governments “at all levels are starting to make inroads, and this will take time to flow through the market, but more needs to be done to speed up the delivery of new homes”.