DM WEEKLY ROUNDUP ISSUE 1

The Weekly Roundup

ISSUE #1

DESIGN MATTERS NATIONAL

Welcome to your weekly industry news roundup. Our analysis focuses on developments curated from various publications, impacting building design practices, with actionable insights for your professional work.

8 Feb 2025

In this newsletter you can expect:

Market trends and sector developments

ESSENTIAL UPDATES This week's developments reflect significant challenges and opportunities across Australia's building and design sectors. Major themes include innovative approaches to housing supply, concerning trends in construction costs and approvals, and important regulatory developments. The news cycle highlights an industry in transition, grappling with affordability challenges while embracing new construction methods and sustainable practices.

Industry leadership updates

Policy reform insights & economic analysis and data Links to Pprofessional development opportunities

HOUSING SUPPLY AND DEVELOPMENT In a significant development for NSW's housing sector, the Housing Development Authority (HDA) has reported an exceptional response to its recent initiative, receiving 96 submissions within three weeks - including 85 for metropolitan areas and 11 for regional NSW. This response could potentially deliver 40,000 new homes, substantially exceeding state expectations and highlighting strong private sector engagement in addressing housing supply challenges.

Parallel to this, major financial institutions are adapting to support innovative construction methods. Commonwealth Bank has taken the lead by announcing reforms to their lending requirements for prefabricated housing, acknowledging current challenges in meeting the federal Labor government's target of 1.2 million homes by 2030. This move has prompted the Albanese government to call on other major banks to follow suit and revise their prefabricated housing lending policies.

Those interested in exploring emerging construction technologies can attend the February InspoExpo series, featuring presentations from Kingspan Insulation Smart Power Tech 1 Smart Power Tech 2 Australian Glass Group 1 Australian Glass group 2 XCEM AWS Bondor

Sources: NSW Housing Development Authority, The Australian, Sydney Morning Herald Related Professional Development: The upcoming "Ask a Planner: Online Workshop Series" will provide guidance on optimising designs for rapid development approval.

INDUSTRY LEADERSHIP AND INTEGRITY Leadership Changes and Integrity Challenges Shape Victorian Building Sector The Victorian building industry is experiencing significant shifts in both leadership and regulatory oversight. Development Victoria has appointed Anne Jolic as CEO, bringing extensive industry credentials including executive positions at Lendlease, Mirvac, and the Property Council of Australia. With over 25 years of experience, Jolic's appointment aligns with the Allan Labor Government's development agenda, particularly focusing on housing supply and urban renewal initiatives.

Related Professional Development Anne Jolic, CEO, Development Victoria

However, the sector is also facing some challenges following ABC News' revelation of an extensive anti-corruption investigation into the Victorian Building Authority (VBA). The investigation has led to charges against three VBA employees and multiple builders in an alleged bribery scheme involving builder registration processes. The scandal, centred around accusations of staff accepting payments to fast-track applications, has exposed potential systemic weaknesses in regulatory oversight.

Sources: Development Victoria, ABC News

Industry professionals can enhance their understanding of compliant contract administration through the upcoming Contract Administration Workshop with Geoff Hoare, scheduled for April 12, June 28, and September 27.

INDUSTRY CHALLENGES AND INNOVATION Supply Chain Disruption and Digital Evolution Reshape Industry Landscape The Australian construction industry faces a significant shift in its supply chain dynamics with the collapse of Oceania Glass, the nation's only architectural glass manufacturer. As reported by the Australian Financial Review, this closure ends 169 years of operation, affecting 260 employees and raising critical questions about Australia's manufacturing self-sufficiency and increasing reliance on imported materials.

Simultaneously, the Canberra Times reports that the industry's digital transformation is creating a dual landscape of opportunities and challenges. While digital tools have revolutionised project management, client communications, and documentation processes, they've also introduced new vulnerabilities requiring careful management of cybersecurity risks.

POLICY AND ADVOCACY Reform Push and Infrastructure Investment Call Mark Policy Agenda A multi-faceted policy debate is emerging across the sector. The Sydney Morning Herald reports that the Business Council of Australia has initiated a significant campaign for regulatory reform, drawing inspiration from international deregulation efforts while aiming to maintain essential safety and quality standards.

This push coincides with HIA's proposal for a $12 billion federal infrastructure investment package, specifically targeting road network expansion in growth areas, water and sewerage infrastructure, and critical enabling infrastructure for new developments.

Adding urgency to these initiatives, a new Productivity Commission’s report on Government Services highlights downward trends in Victoria's housing delivery, revealing that only 4,067 new social/community housing dwellings were added in the past decade – less than half of NSW's 10,454. Shadow Minister for Planning and Shadow Minister for Housing, Richard Riordan, says more concerning is the decline in public housing stock by 181 homes, despite the state's "Big Build" initiative.

Regulatory reform initiatives may lead to: Streamlined approval processes requiring updated compliance approaches New efficiency requirements in documentation and submission processes Enhanced focus on selfregulation and professional accountability

Infrastructure investment could create: New opportunities for integrated design approaches Need for enhanced coordination with infrastructure planning Increased focus on development-ready sites

The combined challenges and policy initiatives suggest a period of significant industry transformation, requiring building designers and energy assessors to maintain flexibility in their approaches while ensuring robust risk management practices.

Sources: Australian Financial Review, Canberra Times, Sydney Morning Herald, Housing Industry Association, Productivity Commission

ECONOMIC INIDICATORS AND MARKET ANALYSIS Mixed Economic Signals Amid Housing Pressures

Recent economic data presents a nuanced picture of Australia's construction sector. According to Architecture & Design's analysis of ABS figures, while underlying inflation has dropped below 3% for the first time in three years, housing-related costs continue their upward trajectory.

Master Builders Australia has emphasised the significance of this trend, particularly noting a 6.2% increase in rents over the past 12 months, and warns against premature optimism.

HIA's analysis of December 2024 building approvals data further underscores the sector's challenges.

While overall residential approvals held steady at 15,170, the composition shows concerning shifts: detached house approvals declined by 2.8% to 8,860, partially offset by a 6.0% increase in multi-unit approvals to 6,310. These figures remain significantly below the levels required to meet current population growth demands.

Sources: Architecture & Design, Australian Bureau of Statistics, Housing Industry Association, Master Builders Australia

UPCOMING EVENTS FEBRUARY 2024 INSPOEXPO Program (FREE Webinar series) Dates: Feb 11–20 Location: Online via ZOOM Status: No registration required — direct ZOOM access.

Just click the link to join.

Format: Six days of expert-led webinars Daily Schedule Tuesday Feb 11 1:00PM - Kingspan 2:00PM - Smart Power Tech Wednesday Feb 12 1:00 PM - Australian Glass Group (Webinar 1) Tuesday Feb 18 11:00 AM - Smart Power Tech (Webinar 2) 1:00 PM - XCEM

Wednesday Feb 19 1:00 PM - Australian Glass Group (Webinar 2) Thursday Feb 20 10:00 AM - AWS 12:00 PM - Bondor

2025 South African Study Tour Info Evening Date: Feb 13 Time: 6:00 PM Location: 14 Queens Road, Melbourne Status: 5 days till Registration closes DMN's Summer Kick-Off 2025 Date: Feb 20 Time: 6:00 PM Location: Carousel Albert Park, Melbourne Status: Registrations Closing Soon

FirstRate5 LIVE: Model Class 2 Multi-Dwellings (v3.2) Date: Feb 21 Time: 12:00 PM Location: Online (AEDT) Note: 8 hours (2 x 4 hours) small group training Status: Registrations Closing Soon Ask a Planner Series Date: Feb 26 Time: 10:00 AM Location: Online (AEDT) Topic: Year in Review - Victorian Planning Changes Status: Registrations Closing Soon The Hütt 01 Passivhaus: Home Tour Date: Feb 27 Time: 10:30 AM Location: 146R Bell Street Coburg, Melbourne VIC Status: Registrations Closing Soon

MARCH 2024 Women of DMN Catch Up at Northside Wines Date: Mar 6 Time: 7:00 PM Location: Northside Wines, 543-545 High St Northcote, Melbourne VIC 3070 Women of DMN Catch Up at Next Door Date: Mar 7 Time: 12:30 PM Location: Next Door At Omar & the Marvellous Coffee Bird, Melbourne VIC 3185 Ask an Assessor Series Date: Mar 11 Time: 2:00 PM Location: Online Upskill Now Masterclass (Thermal) Date: Mar 20 Time: 12:00 PM Location: Online (AEDT) Duration: Four hours

APRIL 2024 Contract Administration Workshop Date: Apr 12 Time: 8:30 AM Location: Online (AEST) Presenter: Geoff Hoare

JUNE 2024 Contract Administration Workshop Date: Jun 28 Time: 8:30 AM Location: Online (AEST) Presenter: Geoff Hoare

SEPTEMBER 2024 Contract Administration Workshop Date: Sep 27 Time: 8:30 AM Location: Online (AEST) Presenter: Geoff Hoare

View all upcoming CPD opportunities Access our online learning resources

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