Homes within reach of only 15 per cent

Jessica Benton
Only 15 per cent of Geelong workers can afford the city’s house-and-land packages, according to a leading Victorian builder.
Bert Dennis said the figure meant Geelong’s plan for about 60,000 new residents at Armstrong Creek was doomed to struggle without an influx of affordable housing.
The Dennis Family Homes boss issued his warning at an Urban Development Institute of Australia forum in Geelong on housing affordability.
Mr Dennis said the chances of Geelong workers affording house-and-land packages improved to only 50 per cent for working couples.
He estimated the typical cost of a Geelong house-and-land package was about $317,000, while the average deposit for a block was $15,900.
“Armstrong Creek and other developments are not going to work on these figures, so we need to make it affordable,” Mr Dennis told the forum.
“The higher the prices, the lower the volume is going to be and that just doesn’t make sense.”
Other speakers called for streamlined planning procedures to improve affordability.
Bendigo Banks’ Pat Murnane said faster planning processes would reduce financial strains on both developers and home buyers.
“An important aspect of this whole thing is shortening the timeframe from the purchase of land to settlement of the property,” Mr Murnane said.
“That would definitely affect the overall affordability.”
Mr Murnane called for tax incentives for developers of low-cost housing.
“This would account for a high percentage of buyers who need housing but cannot afford it,” he said.
Member for Corangamite Darren Cheeseman said the region’s councils should review planning policies that often “bogged down” residential developments.
Mr Cheeseman publicly opposed a Surf Coast Shire plan for 6400 residential dwellings, including about 1400 affordable homes, in Torquay’s Spring Creek area.
The shire abandoned the plan two days before the forum amid widespread community opposition.
At the forum Mr Cheeseman nominated growth corridors at Armstrong Creek, on the Bellarine Peninsula and Surf Coast and in Bannockburn for new residents.
“Geelong’s population grew by some 3000 persons in the last year but I think we should be aiming for a much higher slice of growth,” he told the forum.
“People will come here because land will be opening up in vast quantities in the not-too-distant future.”
City of Greater Geelong’s Terry Demeo said competition between developers was essential for affordability.
Authorities should open new estates with multiple developers to ensure competition for buyers, Mr Demeo told the forum.
Developer contributions and government grants for infrastructure could also keep costs down, he said.
“Let’s get on with it and have developer contributions for delivery of amenities that are required to service a development while getting the sectors to commit to a funding regime that works concurrently with land releases to aid in the delivery process and assist in affordability.”