Master Builders has welcomed plans to expand the Urban Growth Boundary (UGB) but said today’s planning package was still playing around the edges.
Master Builders executive director, Brian Welch, said the expansion of UGB boundaries would be warmly welcomed by builders, but the government should go further and proceed with abolishing the UGB completely.
“Since its introduction six years ago, the UGB has forced up the price of land by reducing land supply and restricting land release,” said Welch.
While the UGB has been successful at reducing urban sprawl, it has failed to encourage infill development or improve housing affordability as originally promised.
Welch said that the UGB distorts land values, undermines housing affordability and discourages long-term residential investment. On these grounds alone, the UGB should be recognised as a planning policy failure and be dumped.
The introduction of Central Activities Districts (CAD’s) will also be embraced by builders looking for commercial construction work in Melbourne’s growing business hubs. However, many builders will be sceptical of the promised benefits since CAD’s are not accompanied by any meaningful planning reforms.
At present, residential builders on average face 20 week delays in obtaining a planning permit from local councils. Nothing in today’s announcements addresses Victoria’s woeful planning system.
He added that in May this year, the government announced the introduction of Development Assessment Committee’s (DAC’s) to tackle planning delays and provide investor certainty, but no legislation has been introduced to fulfil this promise.
