Building ‘plummets’

Peter Farago
BUILDING approvals dropped almost 20 per cent in City of Greater Geelong last year amid housing industry concerns that limited land supply was hitting affordability.
City of Greater Geelong issued 1117 approvals valued at $246.9 million in the 12 months to June, 2007, for a 19.9 per cent drop on the previous year, according to the City’s Economic Indicators Bulletin released this week.
Surf Coast Shire experienced a similar percentage drop, while across the region 1863 new building permits were issued, valued at $441.9 million and representing a 15.7 per cent fall in approvals.
Housing Industry Association director of government and media relations Darren Disney said the latest government figures showed “there was not enough zoned land available” in Geelong.
He said in normal market conditions a limit on supply would push prices up and drive housing affordability down.
“It’s important for council to streamline and improve its processes for making land available and that’s essential because not only do home buyers and builders in the region depend on that but the whole region’s economy,” Mr Disney said.
“Population growth in the region and the growth of the economy is reliant on there being affordable housing.
“Western Australia might be able to rely on a resource boom or mining boom but we are very reliant on population growth in order to grow the economy.”
City of Greater Geelong planning portfolio-holder councillor Rod Macdonald said extraordinary growth in the housing sector was catching up with land supply.
“The supply of land in Geelong has been running down in the past few years because of the quite dramatic rate of growth,” Cr Macdonald said.
But he said more land would become available across the municipality as town structure plans and zoning amendments went on line at Lara, Clifton Springs, Leopold and Ocean Grove, delivering a 10-year supply for new housing.
Cr Macdonald said planning for housing at Armstrong Creek would deliver 25,000 blocks to have a major impact on land availability.
“It’s opening up all around the town but there is still land (available). It could be that people are looking at interest rates, choice or land prices.”
Cr Macdonald rejected the building industry’s claim that council was holding back land development.
“We have a state planing system we have to work through. We have to go through that process, including independent panels to hear objections to developments,” Cr Macdonald said.
Cr Macdonald rejected the building industry’s claim that council was holding back land development.