Interview with Natarsha Belling, 7News

Event: Interview with Natarsha Belling, 7News
Date: 3 April 2025, 12:15pm AEDT
Speakers: Denita Wawn, CEO of Master Builders Australia
Topics: building approvals; construction costs; federal election

E&OE

Natarsha Belling, host 7News: There’s disappointing data out this week on our housing construction crisis. Approvals for new builds fell point three of a percent for the month of February, after a sharp increase in January. There was a modest increase in the number of detached houses being built. It was around 0.2 per cent but higher density slipped by almost one per cent at 0.9 per cent. Experts say we are falling far short of key housing targets. Joining us live this afternoon is Master Builders Australia, CEO Denita Wawn. Denita, thanks so much for joining us. Firstly, can you talk us through these figures? What should we read into it at this stage?

Denita Wawn, CEO Master Builders Australia: The susceptibility and the volatility of the housing market is very here to play at the moment. January was pretty good, February is not good, and yet it needs to be steadily climbing. We know that these figures show that we will fall well short of the Housing Accord targets that were agreed by all three levels of government of 1.2 million homes Australia-wide over five years. So, we’re concerned that there is volatility in the industry, which means that we are going to fall well short, and as a consequence, we’re not going to provide the homes that the community needs. It’s as simple as that.

Natarsha: Denita, what’s behind that volatility in the industry, because it’s an incredibly complicated sector, is it an issue with getting the right trades and the right approvals?

Denita: It’s a bit of those and more, unfortunately. We’ve got structural supply impediments, which means we haven’t got enough people. We haven’t got enough people also within councils and state government, around planning, around approval mechanisms. It takes time, and time, of course, is money. We then also have the issue in terms of the fact that the economy itself is flat. People are not willing to spend money. So, when you’ve had construction costs going up by 40 per cent over the last five years, and it’s taking a significant length of time to build, for example, a high rise apartment block used to take two years, now is up to three years and so forth. It’s all costing money and time, and people are not willing to invest as a consequence. So, there are multiple issues that need to be addressed by all levels of government, and that’s why it’s so important with the federal election, that we hold all the major parties to account.

Natarsha: You just mentioned there before, Denita, which is an excellent point, construction costs have increased 40 per cent. That’s just unaffordable for a lot of these construction companies. So, what can any level of government do about that?

Denita: Well, it’s really quite simple, but unfortunately, it’s also complex that we’ve got decades of unravelling to do in our planning, in our approvals, in ensuring that we’re building not overly complex homes. The building regulations are very, very complex. Very hard to determine which is the best way and the appropriate way and the legal way to build. And then, of course, we’ve got to get the skilled staff to do it. And normally, a detached home would take about nine months to build, with 40 trades quickly going in one after the other. Now, it’s taking well over 12 months, if not more, and that all compounds those costs. And people are saying, no, I cannot afford it at the moment. Cost of living is tough. Housing is a significant contributor to those cost of living pressures that our families are feeling around the country.

Natarsha: Denita, thanks so much for joining us this afternoon.

Denita: Thank you.

Media contact:
Dee Zegarac
National Director, Media & Public Affairs
0400 493 071
dee.zegarac@masterbuilders.com.au