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Housing industry calls for support to build on the boom

Industry peak bodies are calling for stamp duty relief for first-home builders, more apprentice opportunities and a long-term plan to sustain the residential building boom as part of their policy platforms ahead of next month’s state election.

Feb 14, 2022, updated Feb 14, 2022
Picture: James Ross/AAP

Picture: James Ross/AAP

According to the Housing Industry Association,  between about 6500 and 8500 new homes were built in South Australia annually for the past 30 years.

But the HomeBuilder scheme introduced following the onset of the COVID-19 pandemic in mid-2020 resulted in 11,278 new builds in 2020 and is expected to hit a record when 2021 figures are finalised in coming weeks.

HIA SA executive director Stephen Knight said there was an opportunity to capitalise on the recent boom with strategies that enabled a new baseline figure of 9000-10,000 homes per year followed by further year-on-year growth.

The HIA strategies include working with the state government to ensure social housing projects could be scheduled for construction to coincide with a drop off in private dwelling builds.

“Our industry has got plenty of work so we can’t really complain but we want to keep that going,” Knight said.

“We’d like a long-term plan for housing so rather than being a consequence of a strong market we want to be a driver.”

The HIA is also calling on the government to adopt strategies to rapidly grow the state’s population to at least match the pre-COVID national growth rate.

“Until recently, South Australia struggled to compete with interstate rivals for new immigrants, however, the COVID crisis has shown that people are now looking at our state with fresh eyes,” its policy document says.

“Now is the time to take advantage of this and immediately implement strategies to encourage and support new families and workers to our city and regions.”

There are more than 50,000 people employed in the residential construction industry in SA.

Of those, there are about 6500 industry apprentices in SA with the HIA and fellow industry organisation the Master Builders Association, each employing about 130 apprentices.

Knight said the 10-year Torrens to Darlington road project would require 3000 construction workers from 2023, peaking at 5000 in 2026, with a significant number of them recruited from the residential and commercial construction sectors.

He said that would also put pressure on apprentice numbers and require increased investment in training places.

“That’s going to leave a shortfall for us – it’s a great project for the state but we’ve already got a labour shortage and that’s going to make it worse,” he said.

The SA branches of the HIA and MBA are calling for incentives for people to build houses in regional parts of the state, particularly skilled migrants from overseas or interstate.

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The MBA’s policy calls for a $10,000 grant from next year for people building homes in regional SA.

It also wants a trial stamp duty exemption for first home buyers next year on new builds up to the median house price and a temporary 12-month stamp duty exemption for investors who build new homes up to the median house price.

“A regional home building incentive will help South Australians who want to enter the market for the first time remain in their region as well as the local construction industry which provides important jobs and apprenticeships,” the MBA policy platform says.

“This will also support the regional building and construction industry from 2023 onward, once the effects of the HomeBuilder grant have subsided.”

MBA SA CEO Will Frogley said the organisation’s calls to provide lessons for apprentices yet to attain their driver’s licence had been met with bipartisan support.

He said the strength of the industry throughout the coronavirus pandemic had made it “crystal clear how vital a strong building and construction is for South Australia’s economy”.

“Master Builders’ policies will ensure this building led fightback continues whilst improving housing affordability, boosting social infrastructure and skilled careers,” Frogley said.

“To build the homes, offices, sporting stadiums, shopping centres and so on of the future we need to build a hi-viz army today.”

The MBA also wants increased investment in social housing as well as further government spending on ageing community infrastructure such as sporting clubs and regional health facilities.

Its apprenticeship policy calls for more opportunities for females and disadvantaged youths.

But perhaps the most glamorous of its policies is a call for $100,000 in funding to reinstate its locally produced Building Ideas television show, which was axed following budget cuts in 2019.

The MBA says it would match the funding to bring the show back.

The program was previously run partly on an annual state government grant of $88,000.

“Similar to the amazingly successful South Aussie with Cosi, this show was uniquely South Australian and allowed South Australian building companies to feature and promote the local industry,” the MBA says in its policy document.

“In an era when South Australian businesses are competing against interstate and, more often, cheaper overseas businesses, showcasing local talent, workmanship and enterprise is important.”

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