Melbourne might be undergoing a dramatic transformation that will see it eventually overtake Sydney as Australia’s largest city; however, growing pains are beginning to show as utility companies and local governments appear to be unable to keep up with growth.
“Despite the demand for new housing to accommodate a growing population, the time taken to approve new homes keeps blowing out even further,” said Michael Sloan, founder of real estate investment company The Successful Investor. Sloan has witnessed first-hand the bottleneck effect on projects caused by bureaucracy he’s described as “inefficient.”
In new estates, applications aren’t accepted until the moment the land is titled. As a result, property owners have to pay interest on settled land for almost four months before construction even starts. “With all the pressure first-home owners face, adding four months of interest payments due to red tape is something that must be changed,” Sloan said.
This figure could be slashed to less than a third if local government and utility organisations targeted the approvals process for speed improvements.
“New figures from the Department of Environment, Land, Water and Planning show Melbourne will need another 2 million homes to accommodate population growth,” Sloan said. “The approvals process can definitely be streamlined to allow shorter processing times. This needs to be done to ensure we maintain Melbourne’s reputation as a great place to live, work and do business.”
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