Recent research from the Property Council of Australia revealed that planning delays are adding almost $37,000 to the price tag of new homes in Queensland.
“Assessment delays have a significant impact on housing affordability,” Property Council Queensland executive director Chris Mountford said.
Delays result in additional land tax, council rates, holding costs and loan interest to the developer’s expenses, “adding thousands to the end product,” Mountford added.
An analysis undertaken by a third party firm on behalf of the council further suggests that state government is likely to take four years, while local government processes normally take twice as long.
“The research shows that if Queensland developments could be rezoned within the same two-year timeframe that we see in Melbourne, the lot price would be reduced by $36,800,” Mountford said.
Furthermore, he stressed, “That’s a real saving for homebuyers and an efficiency gain for the Queensland economy. A $21,153 saving on the original price of a new home is really more like a $40,000 saving over the life of a 30-year mortgage.”
Collections: Mortgage News