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Developers and builders want the Barr government to extend policies designed to spark activity in Canberra’s construction sector, amid concerns it is yet to “sufficiently recover” from the coronavirus-induced economic slump. The call is backed up by figures which paint a concerning picture for the state of the sector, including significant falls in building approvals and dwelling commencements in recent months. Property Council executive director Adina Cirson and Master Builders Association boss Michael Hopkins have written to Chief Minister Andrew Barr, arguing it was too early to remove stimulus measures to a sector that has suffered more than 1500 job losses since March. The peak bodies are lobbying the ACT government as it prepares to hand down its delayed 2020-21 budget on February 9. “Without the combination of federal and ACT stimulus measures the outlook for the property and construction industry would be catastrophic,” the letter said. “However, we do not believe the ACT economy has sufficiently recovered to a point where any of the stimulus measures can be removed.” The groups want the measure allowing developers to save up to $250,000 on lease variation charges to be extended until December 31, 2021. They also want a host of temporary stamp duty concessions, which are due to expire on June 30, made permanent. The peak bodies want the concessions, which include stamp duty waivers on new builds, offered to investors, not just owner-occupiers. “We are concerned that the current economic situation will see a tapering of supply in the new year as the impacts of the pandemic are realised,” the joint letter stated. “We believe that extending stamp duty concessions for investors would not only increase rental supply – but create an attractive incentive for those interstate to invest in the ACT and act as a critical job creating stimulus measure.” A spokeswoman for Mr Barr said the ACT government was examining all of its temporary coronavirus support measures, with announcements on whether they would be removed or extended to be made before their respective expiry dates. However, the government has ruled out extending stamp duty concessions to investors, with Mr Barr’s spokeswoman saying there was “no clear economic evidence that this would increase housing stock, and instead could increase the risk of pricing out potential owner-occupiers in the short term”. The Property Council and Master Builders Association also used their November 13 letter to call on the ACT government to support their push for the Commonwealth’s HomeBuilder scheme to be extended until the end of next year. The federal government has since announced a three-month extension of the program, with the value of grants lowered from $25,000 to $15,000. The Canberra Times last month reported that just 2 per cent of HomeBuilder applicants in the ACT had so far received grants. The construction sector’s calls for help came as Australian Bureau of Statistics data showed a slowing in building activity in the territory. The number of building approvals issued in October was down 40 per cent on the previous month, the second largest fall of any jurisdiction behind the NT. Dwelling commencements were down almost 30 per cent in the June quarter, and 15 per cent on the same period last year. The ACT government believes a combination of a further easing of COVID-19 restrictions, low interest rates, stamp duty concessions and the extension of the HomeBuilder program will support activity in the construction sector. For faster access to the latest Canberra news, download The Canberra Times app for iOS and Android.
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Developers and builders want the Barr government to extend policies designed to spark activity in Canberra’s construction sector, amid concerns it is yet to “sufficiently recover” from the coronavirus-induced economic slump.
The call is backed up by figures which paint a concerning picture for the state of the sector, including significant falls in building approvals and dwelling commencements in recent months.
Property Council executive director Adina Cirson and Master Builders Association boss Michael Hopkins have written to Chief Minister Andrew Barr, arguing it was too early to remove stimulus measures to a sector that has suffered more than 1500 job losses since March.
The peak bodies are lobbying the ACT government as it prepares to hand down its delayed 2020-21 budget on February 9.
“Without the combination of federal and ACT stimulus measures the outlook for the property and construction industry would be catastrophic,” the letter said.
“However, we do not believe the ACT economy has sufficiently recovered to a point where any of the stimulus measures can be removed.”
They also want a host of temporary stamp duty concessions, which are due to expire on June 30, made permanent.
The peak bodies want the concessions, which include stamp duty waivers on new builds, offered to investors, not just owner-occupiers.
“We are concerned that the current economic situation will see a tapering of supply in the new year as the impacts of the pandemic are realised,” the joint letter stated.
“We believe that extending stamp duty concessions for investors would not only increase rental supply – but create an attractive incentive for those interstate to invest in the ACT and act as a critical job creating stimulus measure.”
ACT Chief Minister Andrew Barr Picture: Dion Georgopoulos
A spokeswoman for Mr Barr said the ACT government was examining all of its temporary coronavirus support measures, with announcements on whether they would be removed or extended to be made before their respective expiry dates.
However, the government has ruled out extending stamp duty concessions to investors, with Mr Barr’s spokeswoman saying there was “no clear economic evidence that this would increase housing stock, and instead could increase the risk of pricing out potential owner-occupiers in the short term”.
The Property Council and Master Builders Association also used their November 13 letter to call on the ACT government to support their push for the Commonwealth’s HomeBuilder scheme to be extended until the end of next year.
The construction sector’s calls for help came as Australian Bureau of Statistics data showed a slowing in building activity in the territory.
The number of building approvals issued in October was down 40 per cent on the previous month, the second largest fall of any jurisdiction behind the NT.
Dwelling commencements were down almost 30 per cent in the June quarter, and 15 per cent on the same period last year.
The ACT government believes a combination of a further easing of COVID-19 restrictions, low interest rates, stamp duty concessions and the extension of the HomeBuilder program will support activity in the construction sector.
