The Minns Government releases its 2025/26 Budget on Tuesday. Picture: Gaye Gerard
NSW Budget initiatives aimed at driving increased innovation in the building sector could go a long way in addressing the state’s housing construction woes, experts have revealed.
The Budget has allocated $20 million for emerging technology commercialisation in key areas like housing and energy.
There is an additional $4 million allocated to promote new technologies and construction methods through the Housing Innovation Network and Innovation in Construction Fund.
“(These) are both positive steps that will help to drive investment in the future pipeline,” said Katie Stevenson, executive director of the Property Council NSW.
More housing is urgently needed. Picture: Flavio Brancaleone
NSW Treasurer Daniel Mookhey also committed funds to ensure quality controls on housing development.
About $145 million will continue to be allocated to the NSW Building Commission to crack down on dodgy developers.
These initiatives complement the government’s headline Pre-sale Finance Guarantee package worth $1 billion.
In a state government first, the government will essentially act as a guarantor for certain housing projects.
The scheme will directly add 5000 new homes by going guarantor for developers on unsold properties and will indirectly add 15,000 new homes over the next five years by offering builders the security to start new projects through purchasing unsold stock.
NSW Treasurer Daniel Mookhey. Picture: Rohan Kelly
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Ms Stevenson said it was welcome to see housing delivery on the government’s agenda, with innovation having a clear role to play in addressing systemic problems in the planning and approvals regime.
It comes as AI planning systems are been heralded as a game changer in addressing the sluggish housing approvals process that has long contributed to NSW property shortages and soaring prices.
Wingecarribee Shire Council in the Southern Highlands region southwest of Sydney recently went live with an AI system designed to help residents speed up their development approvals.
The Development Application Information System, known as DAISY, is expected to be used by more councils soon, with 20 applying for grants to use the AI program.
Housing Industry Association executive director of development Mike Hermon said planning reform is a major part of solving the housing crisis.
“All state and territories governments need to implement major reforms now, to stem the tide of unaffordable housing,” he said.
“State, territory and local planning regulations have become so complex they hinder the development of new housing, instead of helping.
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“At a time when housing has reach record levels of unaffordability and Australian is on course to fall at least 20 per cent short of the (federal) government’s 1.2 million homes target, state and territory governments cannot just keep on doing the same and hoping it will solve itself.”
The HIA is currently spearheading a One House One Approval campaign aimed at streamlining planning and building approval processes to ensure all forms of housing can be approved inside 30 days.
Mr Hermon said a change in approach was urgently needed.
He pointed to a recent report that showed close to $576,000 of the total cost of a house and land package in Sydney was taxes, fees and regulatory costs – expenses that were boosted by cost delays in getting approvals.
“Not only is the lack of true planning reform affecting housing supply levels, it is having significant impact on industry productivity in needing to spend additional hours navigating complex approvals processes as well as cost in the delivery of new housing.”
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