New dwellings in Tasmania continue to slide as minister unveils projects

Tasmania has seen a seventh consecutive quarter of fewer residential builds being started, as the state government unveils new community housing projects at both ends of the state.

Two new two-bedroom social houses at Newstead, Launceston. Picture: Alex Treacy

The state government has unveiled two new community housing projects, one at either end of the state, amid continuing signs that the residential construction sector is grinding to a halt with a seventh consecutive quarter of fewer builds.

The first 12 of 55 two and three-bedroom units at Chigwell were unveiled on Wednesday, while Housing Minister Guy Barnett debuted two two-bedroom homes at Newstead on Thursday.

“This is just another day where these properties are being built and keys are being handed over,” Mr Barnett said.

Housing Minister Guy Barnett inspecting a two-bedroom social house at Newstead with the inaugural resident, who lives with a disability. Picture: Alex Treacy

He said the state government provided a $135,000 grant to Community Housing Ltd to build the two Newstead houses.

The government will provide financial support to a total of 20 residences Community Housing has planned across the state, out of the 104 the company says it will deliver by the end of 2024.

Mr Barnett repeated the state government’s commitment to building 10,000 social and affordable new homes by 2032 under a $1.5bn program.

As at June 30, the state government had provided just shy of 1400 new dwellings under the program.

Housing Minister Guy Barnett and Liberal Bass MP Simon Wood at new social housing at Newstead, July 13, 2023. Picture: Alex Treacy

However, new data from the Australia Bureau of Statistics shows a worsening outlook for Tasmania, with just 705 new dwellings commenced construction in Tasmania in the March quarter, the seventh such quarter of decline.

There were more than 1000 starts in the corresponding March quarter in 2021.

The financing of new residential builds in Tasmania has also fallen off a cliff.

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The most recent ABS Lending to Households and Businesses data showed that the total number of loans for the purchase of construction of new homes in Tasmania in the three months to May fell by 37.9 per cent.

It was the second highest decline in the Commonwealth, behind the ACT, where loans declined by 57.6 per cent.

State Labor’s housing spokeswoman Ella Haddad said that the declining outlook highlighted an “alarming trend” under the Liberal state government.

“If the Liberal government hasn’t fixed the housing crisis after 10 years in government, they never will,” Ms Haddad said.

She said the Labor opposition’s Build to Rent policy would see 1,000 additional private rental homes enter the market within the first five years of a new government, and stay in the private rental market for thirty years.

Mr Barnett said the state government was “all about building new homes faster” and stressed that the 10-year, 10,000 new social and affordable homes program was the “most ambitious plan in Tasmania’s history”.

He said that suggestions of a declining outlook rang hollow when the “economy is obviously growing in Tasmania”.