Drew Wagner: Turning Crisis into Opportunity: Rethinking Housing Development in the NT

While the phrase “housing crisis” has dominated headlines in recent months it is an opportunity for the Territory, not just a crisis, writes Drew Wagner the CEO of the Northern Territory Division of the Urban Development Institute of Australia (UDIA NT).

NT chief executive officer of the the peak industry body of the Northern Territory Division of the Urban Development Institute of Australia Drew Wagner says meeting the growing housing demand requires a broader approach than what we have today.

The phrase “housing crisis” has dominated headlines in recent months.

Many are calling for greater investment into social and affordable housing, while others demand more land availability.

While the need for social and affordable housing is undeniable, land is already widely available.

This is where we see an opportunity for the Territory, not just a crisis.

Meeting the growing demand for housing clearly requires a broader approach than what we

have today.

We must deliver supply across the entire housing spectrum, addressing community needs, societies demands and market expectations.

These priorities are central to UDIA NT’s work on behalf of our members and with all levels of Government.

Housing is only one piece to the puzzle.

To activate communities and sustain the lifestyle we all as Territorians value so much, we need an integrated approach - economic development, skills availability and population growth.

New roads and infrastructure leading one of Darwin’s newest land release sites in Holtze are nearing completion with 70 per cent completion of the $19.4m headworks.

It’s not just about attracting people to the Territory; it’s about how we keep them here.

This means working across all areas of investment, development and regulatory frameworks. No industry would ever seek a reduced regulatory framework designed to cut corners and validity, but how we seek efficiency in the approvals process is critical.

Capital flows to its path of least resistance, and the cost of capital remains higher in the NT than elsewhere.

Now is the time to use policy levers and new investments to bring that capital to fruition.

These should include levers such as those pertaining to enabling infrastructure, lot sizes, planning instruments, and sensible timeframes for application processing.

If the NT is “open for business”, we must show the market, and its investors, what that truly means.

For example, UDIA NT has long advocated for minimum lots of around 500m 2 in developed

areas.

This would allow for potential revitalisation of our older suburbs – unlocking areas that have seen little growth for decades.

Currently at 800m 2 , any delays in this amendment mean potential missed opportunities for economic stimulation and population growth.

The Parks sub-division Holtze. Picture: Pema Tamang Pakhrin

Another lever was the extension of the HomeGrown scheme, which deserves praise.

This mechanism, launched just last year, is already driving jobs, economic activity and more

home ownership – a clear indicator of a positive policy initiative, developed between industry

and Government.

However, recent federal policy changes, announced by the federal treasurer, allowing low- deposit loans without lenders mortgage insurance, are to be capped at $600,000.

This is $40,000 below Darwin’s median house price, therefore a large number of first home buyers are denied any further support due to an arbitrary line in the sand.

UDIA NT has joined the calls to raise this threshold to $850,000 to ensure more Territorians can enter the market, and own their own home.

Changes like these will mean more jobs, engaged trades, potential population growth, and

rental market relief.

The Northern Territory needs more than social and affordable housing.

It needs solutions that encourage investment and deliver projects.

The City of Darwin has launched its new Place and Liveability Plan to 2050 to help guide the development of a more sustainable, connected and vibrant city.

The City of Darwin has launched its new Place and Liveability Plan to 2050, to

help guide the development of a more sustainable, connected and vibrant City, supported by

a new interactive portal to engage the community.

This ultimately highlights what the community and the economy need.

The plan not only utilises that community engagement to provide feedback for suggest improvements for enhancing and activating this local Government area, it is also collecting data throughout the process, so that the decisions in the future are not only fact and needs based solutions, but are supported by data.

It is this kind of thinking that can innovatively change how we do what we do and provide that efficiency.

We have the perfect opportunity to do that right here.

Let’s seize this opportunity to build a stronger, more liveable Territory by turning this crisis into an opportunity for all Territorians – pull those levers.

Drew Wagner is the chief executive officer of the peak industry body of the Northern Territory Division of the Urban Development Institute of Australia (UDIA NT)

Originally published as Drew Wagner: Turning Crisis into Opportunity: Rethinking Housing Development in the NT