At present, developers across Australia are facing difficulties securing environmental approvals for housing developments. One major ASX-listed developer has 20,000 lots on hold under the Environmental Protection and Biodiversity Conservation (EPBC) Act. A dedicated team formed by the environment and housing ministers will investigate which applications can be expedited in order to speed up home delivery.
An industry association representing large-scale residential developers estimates the number of homes delayed in the approvals process exceeds 40,000, which is significantly higher than the government's official figure of 26,000. They say the true figure is unclear due to confusing application statuses, with many proposals either stalled in departmental review or returned to developers for amendments.
While some large developers report few issues, such as one firm with no outstanding approvals and another having just secured approval for 2,000 lots, others, particularly national land developers, are optimistic that the reforms will cut red tape and help bring more land to market.
The government's strategy includes forming a specialised team to speed up assessments and exploring the use of artificial intelligence to streamline the process. However, despite these policy efforts, the construction sector continues to face significant challenges. New Australian Bureau of Statistics data shows residential building activity increased by just 0.1% in the June quarter to $24.2 billion, which is the slowest growth in 18 months.
Wider economic indicators are mixed. Analysts see promise in recent state-level policies, especially in larger cities such as Sydney and Melbourne, though ongoing labour shortages and rising costs remain barriers to increased building activity. Even so, the move to accelerate environmental approvals appears to be a necessary step that could unlock thousands of new homes across the country.
