According to the Urban Development Institute of Australia (UDIA), the federal government of Australia should lobby for policies to support the residential construction sector to help the economy withstand effects of the COVID-19 epidemic.
Simon Basheer, National President of UDIA, said that housing construction is a "central pillar" of the economy, contributing 7.5% of overall growth and supporting 750,000 jobs .
"Until now, construction sites can remain open and the industry will play its part in maintaining work and activity as long as it is healthy and safe" , did he declare.
UDIA made six recommendations that could help the sector achieve a rapid recovery. These recommendations build on and expand on existing policies and initiatives.
"The residential development sector in Australia is traditionally well capitalized, resourceful and able to move quickly once obstacles to starting projects are removed," said Basheer.
Read also: Wish list of owners in the middle of COVID-19
The first recommendation is to unlock the second tranche of the First Home Loan Deposit Scheme. The program helps home buyers enter the market with as little as 5% deposit.
UDIA said that the 10,000 spaces planned for the program should be vacated as soon as possible and should be reserved exclusively for those intending to buy new homes.
The UDIA also proposed a policy that would eliminate the backlog of projects under evaluation via the Environmental Protection and Biodiversity Conservation Law (EPBC) .
The UDIA also recommended that the government accelerate investment in infrastructure projects, especially those that can support new urban development.
The UDIA proposal also includes the implementation of an incentive for state and territory governments to reduce the time taken to approve major projects. At the same time, this policy also includes the removal of regulatory barriers to shovel-ready housing projects.
The fifth suggestion is to ensure a continuous flow of credit.
Finally, UDIA said it was essential to broaden stamp duty exemption regimes, lower barriers to foreign investment and stimulate rental construction. These will help support new land releases and off-plan stocks.
"The industry appreciates the broader economic incentives that governments and regulators have already put in place to maintain liquidity, increase cash flow and keep as many people in employment as possible" said Basheer. We understand that there will be difficult days ahead – but we want to collaborate with governments and our workforce on ideas to minimize impact and maximize recovery. "
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