Building approvals plummet further in Tasmania, which housing industry warns needs an urgent fix

Latest statistics reveal a housing shortfall in Tasmania that industry leaders say will only keep getting worse unless urgent action is taken. What a new government is being urged to do.

Brandon Atkinson owner of Acon Property and Rebecca Ellston Tasmanian executive director Property Council of Australia on site at Kingston where a home is being built. State election wish list 2024. Picture: Nikki Davis-Jones

Tasmania’s housing crisis will only keep getting worse without urgent action to improve affordability, boost supply and fix skills shortages, the housing industry says.

Data released by the Australian Bureau of Statistics this week shows a 30 per cent drop in building approvals in Tasmania in the last two years.

After declines of 16 per cent in 2022 and 18 per cent in 2023, the number of dwelling approvals are now below the level needed just to keep up with population growth.

The Property Council of Australia says the housing crisis is at a critical point and whoever is in government after the March 23 state election must top priority.

The Property Council Tasmanian Executive Director Rebecca Ellston said low affordability and supply were the problems.

Brandon Atkinson owner of Acon Property and Rebecca Ellston Tasmanian executive director Property Council of Australia on site at Kingston where a home is being built. State election wish list 2024. Picture: Nikki Davis-Jones

Data released as part of the Council’s election wishlist shows that the cost of housing has increased at twice the rate of wage growth for the last 20 years.

“The lack of supply impacts every Tasmanian and the Property Council believes it must be the key priority for the next term of government,” she said.

“The extent of the housing crisis needs calls for scaled-up stimulus and incentives for the private market, to assist in broking the gap between supply and demand.

“To assist with growth targets, the property industry can no longer afford to be held back by a complex policy environment, high levels of regulation, and increasing costs, that prevent our state from reaching its full potential.”

Among the reforms the Property Council wants is a boost to the ability of TasWater and TasNetworks to provide critical infrastructure in a timely fashion, stamp duty concessions for new dwellings, help with headworks charges and pre-approved housing designs for free download.

Property Council state president Heather Mason said the state was going backwards.

“We don’t have the supply to keep up with demand now, let alone to meet our future targets,” she said.

Heather Mason Tasmanian president of the Property Council of Tasmania. Picture: Nikki Davis-Jones

“We also need to make sure that we are building new dwellings around job educational and

social opportunities and as close to public transport as we can get to ensure we’re creating the best outcomes we can for Tasmanians.

”This includes finally activating the northern transport corridor from Glenorchy to the CBD, instead of being shoved in the too-hard basket for another half a decade.

“Importantly, any stimulus must be coupled with a boost to workforce capacity to deliver increased supply.”

Master Builders Tasmania CEO David Clerk said the 2700 dwellings approved last year was below the number needed to cope with population growth.

“We know that we need to build 3,100 new houses per year just to keep up with population growth, yet alone tackle the social and affordable housing waiting lists,” he said.

“Master Builders would like to see strong policies to encourage people to build their own homes and make sure we are building more houses.

“It’s also vital that we grow the workforce of the future through initiatives like the High Vis Army.

“We need another 15,000 workers in the industry to meet the estimated total construction demand over the next 10 years.”

Independent candidate for Clark Sue Hickey wants a $100m housing fund to build 400 affordable homes.

“Tasmania’s housing crisis has existed for decades, and it has only exacerbated over the past decade,” she says.

“Tasmania’s housing waitlist is out of control, with 4500 applicants still waiting for a home. “The list has grown by almost 1000 over the term of the last parliament and the wait time has blown out to an average of more than 77 weeks.

“If social and affordable housing providers are given a government-guaranteed $100 million in loan funding and a three-year interest holiday, it would boost home construction and employment, help to provide homes for those on the housing waiting list and act to bring rents under control.”