Login
The landscape for builders and renovators in Victoria has become increasingly challenging. Over the past few years, we’ve seen significant changes that have made it tough to navigate the industry, and whilst the below is just our opinion, let’s take a quick look at some of the key factors:
1. COVID-19 and Material Costs
The pandemic hit the construction industry hard. One of the most notable impacts was the staggering 40% rise in material costs. This sudden increase has forced many projects to go over budget, creating financial strain on builders and homeowners alike.
2. New Energy Efficiency Rules
Victoria’s commitment to sustainability has led to the introduction of stricter energy efficiency rules. While we are strong supporters of these regulations, there’s no denying that they come with added costs. Implementing energy-efficient solutions often means more expensive materials and technologies, which can drive up the overall cost of a build.
3. New Building Code
The introduction of a new building code in Victoria has also contributed to the rising costs of construction. These changes, designed to improve the safety and quality of buildings, require additional work and documentation, further stretching budgets.
4. Planning Requirements and Delays
One of the most frustrating aspects of building in Victoria right now is the planning process. Over the past few years, planning requirements have become more stringent, with an overwhelming number of documents needed to get approval. This has led to significant delays, stalling projects and creating a backlog that’s difficult to manage.
Many builders, including ourselves, are feeling the pressure. The council process, which once seemed manageable, has now become a headache due to these increased barriers and the lack of accountability. While I’ve always been a strong advocate for local councils and the services they provide, it’s clear that reform is needed to streamline the process and reduce unnecessary delays.
5. The Impact on Housing Affordability
All these changes are having a direct impact on housing affordability. With costs rising and projects being delayed, it’s becoming harder to keep housing prices down. For those of us in the industry, it’s a challenging time as we try to balance the need for quality construction with the need to keep prices affordable for buyers.
What Are We Doing?
Given the current environment, we’ve decided to focus on projects that require only building permits. Avoiding the council approval process means fewer delays and less frustration, allowing us to complete projects more efficiently. However, this approach isn’t suitable for every project, so it’s crucial to carefully consider what types of projects you take on during this time.
A Call for Reform
The need for change is evident. The construction industry is vital to Victoria’s economy, and it’s essential that the processes surrounding building and planning are as efficient and transparent as possible. There’s a growing call within the industry for massive reform, particularly in the way councils handle planning approvals.
How Are You Coping?
We’re not alone in feeling the pinch from these changes. Many builders and renovators are experiencing similar frustrations. If you’ve been navigating these challenges, we’d love to hear how you’re coping. Have you found ways to work around the delays and rising costs, or are you feeling the strain as well?
Building and renovating should be rewarding experiences, but right now, it’s hard to ignore the difficulties we’re facing in Victoria. Hopefully, with more voices calling for change, we can push for the reforms needed to make the process smoother for everyone involved.
