Coronavirus: Planning backlog ‘a road hump on fast track to revival’

The COVID-19 pandemic has impacted the planning process, leading to a ‘clear backlog’ of permit approvals.

PDS Group managing director Andrew Fortey on site in Melbourne’s east, with Urban Development Institute of Australia chief Danni Hunter. Picture: Aaron Francis

It’s noon on a weekday and about 250 workers are on site at the Hawthorn Park residential development in Melbourne’s eastern suburbs.

Construction managers, scaffolders, carpenters, plumbers and painters come and go as needed as the $100m,
400-apartment development complete with a rooftop lounge and skybridge swimming pool nears its October completion date.

The Camberwell Road site shows little if any sign of an economic slowdown,
but Andrew Fortey, whose company PDS Group has been managing the project, has serious concerns about what happens when the pipeline of projects currently under way comes to an end.

PDS Group has four prospective development projects lodged with local government planning offices and Mr Fortey said the COVID-19 pandemic had impacted on the planning process, leading to a “clear backlog” of permit approvals.

“The construction industry often lags this kind of economic crisis, and we’ve seen projects under way in construction and people employed throughout this,” he said. “But there will be no projects to start come September and October if we don’t start seeing more approvals coming through.”

Mr Fortey welcomed the HomeBuilder scheme but said the grants of $25,000 targeted just a fraction of the industry, largely new builds, and the economic stimulus would be minimal.

He said one of his smaller projects, such as a 15-20 apartment development under way in the suburbs, was worth about $10m and would employ 150-200 workers through the duration of the project.

Meanwhile, his largest current project, a 70-story Melbourne CBD hotel and apartment complex due for completion later this year, had provided work for 4000 building industry workers.

“We know that in Victoria there’s billions of dollars of construction projects that are shovel-ready, with finance in place, that are awaiting approval,’’ Mr Fortey said.

“Fast-tracking their approval amounts to having hundreds of thousands of workers who will be retained in jobs or able to have opportunities to work.

“If we can do that, coupled with stamp duty relief and changes to payroll tax, that will create significant economic activity and generate government revenue as well.”