NATIONAL
29 May 2025
NATIONAL
29 May 2025
Australia's construction industry faces mounting challenges as apartment construction times blow out dramatically, while Victoria grapples with project delays and rising costs. The National Housing Supply and Affordability Council's latest report warns that Australia will fall well short of its ambitious housing targets, prompting renewed calls for productivity improvements and planning reforms. Against this backdrop, the Queensland Productivity Commission has launched a comprehensive inquiry into construction sector productivity, while South Australia positions itself as a housing success story. New AI tools for planning applications offer hope for streamlining approvals, and prefabricated construction continues to gain momentum as a potential solution to delivery timeframes. Victoria's Building Legislation Amendment (Buyer Protections) Bill 2025 advances with strong industry support, promising enhanced consumer protections and streamlined regulatory oversight DESIGN MATTERS NATIONAL
The Victorian Government is introducing sweeping reforms to the state's building and plumbing industries through the Building Legislation Amendment (Buyer Protections) Bill 2025. At the heart of these changes is the creation of a new regulator, the Building and Plumbing Commission, which will assume responsibility for licensing, oversight, and enforcement across the sector.
IAccording to the VBA, the Commission's expanded powers will enhance consumer protections, streamline regulatory processes, and improve accountability across the industry. Building designers will need to stay informed and adapt to new compliance requirements, as the Commission introduces stricter oversight measures and penalties for breaches
The reforms aim to address long-standing challenges in Victoria's building sector, such as non-compliant work, delays in dispute resolution, and inconsistent enforcement of standards. With the Commission's broader mandate, building designers can expect increased scrutiny around documentation, design quality, and adherence to regulations.
Understanding these changes is critical for professionals who want to stay ahead in a shifting landscape. That's why Design Matters National is hosting a dedicated webinar on 3 June 2025, where Steven Baxas from the VBA will unpack the reforms and what they mean for building designers.
This session will cover:
The role and responsibilities of the new Building and Plumbing Commission
How expanded regulatory powers impact your work
Practical steps to ensure compliance under the new framework
If you're a building designer or energy efficiency assessor in Victoria, these regulatory reforms will affect your business. The new rules could mean more paperwork, stricter compliance, and greater risk of penalties if you're not prepared. Staying informed is not optional it's essential to keep your projects running smoothly and your clients protected.
Don't risk being left behind secure your spot now for this essential industry update.
Building on national discussions about construction sector challenges, the Queensland Productivity Commission has launched a comprehensive inquiry into opportunities to improve construction sector productivity
The Commission is seeking stakeholder input on policy and regulatory settings that may be adversely impacting productivity, costs, and project delivery timeframes
Key areas for stakeholder feedback include:
Direct experiences of policy and regulatory barriers
Analysis and case studies demonstrating regulatory impediments
Priority areas for reform
Options for improving productivity without compromising safety or quality
This inquiry represents a significant opportunity for the construction industry to influence policy settings and regulatory frameworks that directly impact project delivery and costs.
The inquiry follows the Commission's structured approach: 9 May 2025: Initial stakeholder consultation opens 2 June 2025: Portal for initial stakeholder input closes July 2025: Interim report released, followed by further consultation 24 October 2025: Final report submitted to government
New analysis reveals the time required to build an apartment has blown out to more than 2½ times that required to construct a house AMP analysis of Australian Bureau of Statistics figures shows national completion times for apartments have increased from 1.7 years in 2012-13 to 2.7 years in 2023-24.
Cost spikes, post-lockdown bottlenecks, tax impacts, and tighter regulation have all contributed to these extended construction times. This timing crisis comes as the National Housing Supply and Affordability Council warns that Australia will build only 938,000 homes until June 2029 down from the previously forecast 943,000 and well short of the 1.2 million target.
Property Council of Australia Chief Executive Mike Zorbas highlighted the report's findings demonstrate the need to increase productivity in the construction sector, simplify planning systems and encourage investment
The situation in Victoria reflects these national challenges, with almost one-third of the 518 projects funded in last year's state budget now behind schedule, including more than two dozen education projects
As the industry grapples with productivity challenges, innovative solutions are emerging. A new planning AI bot, originally co-developed with Victoria's Yarra Ranges Council, is now available to local councils around the nation. The AI can take information submitted by users to answer planning questions, determine what's permitted on their land based on local planning schemes, and decide whether a development needs a permit.
Meanwhile, prefabricated construction continues to demonstrate its potential, as illustrated by Vanessa Crump's five-bedroom house that was constructed in a single day, leaving neighbours amazed at the speed of construction.
Australian professionals in the built environment sector are embracing AI opportunities, with 73% viewing AI as an opportunity well above the global average of 60%. Many respondents believe AI can help deliver projects on time and within budget, as well as address environmental challenges.
IStandards Australia has released the revised edition of AS/NZS 3500.3:2025, a crucial standard for plumbing and drainage, particularly stormwater management. This standard is referenced in the National Construction Code (NCC) as a Deemed-to-Satisfy (DTS) solution for roof drainage systems in buildings.
Regional development continues to expand, with Southern Tasmania's urban growth boundary increased by 615 hectares, including potential for substantial new housing development at Rokeby, Sorell, Brighton and Margate
Australia's recognition in global architecture continues to grow, with Australian tall buildings being recognised among the world's best by the Council on Tall Buildings and Urban Habitat (CTBUH).
Positive news emerges from South Australia, which tops the Housing Industry Association's Housing Scorecard, with HIA Senior Economist Tom Devitt noting the state's outlook has taken "a marked step up in recent years, as economic and policy dynamics increasingly shift in the state's favour "
The state has been supported by elevated numbers of overseas arrivals and far fewer local residents leaving for other states than in recent history. Additionally, South Australia is reinforcing its commitment to expanding social and affordable housing by introducing a requirement that SA Housing Trust will be formally consulted on all new planning code amendments.
The Australian Construction Industry Forum (ACIF) Forecasts project that construction work will reach $334 billion in 2024-25, growing by 1.6 per cent. Growth is expected to increase to 1.9 per cent in 2025-26, buoyed by lower interest rates lifting demand.
Residential building has turned around, and the recovery is gathering momentum. The prospect of interest rate reductions has been sufficient to reignite some growth, raising approvals, commencements and building activity Most growth has been in stand-alone houses which always respond quickly to cyclical changes.
However, the industry still faces challenges including high materials costs, planning delays, skills shortages, poor productivity, and lingering threats to subcontractor solvency. A CEDA report finds large construction firms generate 86 per cent more revenue per worker than small businesses, highlighting productivity disparities in the sector
Victoria's Skills Solutions Partnerships program has opened Round 2, offering co-funded grants of up to $500,000 to support eligible pilots that bring industry together with TAFEs and dual sector universities to co-design and pilot new short courses and on-the-job training solutions Major infrastructure projects continue to advance, with the T2D Alliance hosting its Construction Industry Briefing on 10 June 2025 to provide an overview of upcoming work opportunities for the nonstop South Road project between the River Torrens and Darlington.
Melbourne's hotel market is experiencing significant expansion with occupancy rates climbing and luxury developments dominating the sector pipeline Another 2,117 rooms are under construction or proposed across 10 hotels due to open by 2026.
Australia needs to develop greater skills in digital engineering across the building and infrastructure workforce, according to industry conferences. This aligns with broader trends of technological adoption in the construction sector
The expansion of data centres as an asset class continues, with Australia now the second biggest investment hotspot for data centres globally However, concerns about community impacts, including noise, light and waterway pollution, rising energy bills and environmental destruction, are emerging.
With work experience season upon us, Design Matters National encourages members to consider providing opportunities for students entering the building design profession. Work experience placements offer valuable industry exposure for students while providing practices with fresh perspectives and potential future talent.
If your practice has capacity to mentor a student and provide meaningful work experience in building design, energy assessment, or related fields, this is an excellent opportunity to contribute to the next generation of professionals Contact your local educational institutions or reach out to Design Matters National for assistance in connecting with students seeking placements.
20 JUNE
D e s i g n i n g T o m o r r
Design Matters National has recently updated our practice notes. This collation of materials for members gathers all the webinars and support resources to help members become familiar and proficient when it comes to compliance with the new Energy Efficiency Standards and associated building design principles. The resource will be updated as more materials become available. Members can access the complete collection through the Members Resource Portal. We encourage you to review these updated materials to support your professional practice.
The industry challenges highlighted in this issue create clear professional development opportunities. We've identified strategic learning pathways that directly address the key concerns raised in today's construction sector:
With Victorian building legislation reforms creating new compliance requirements and the Queensland Productivity Commission examining regulatory barriers, staying ahead is critical:
Government Reform Agenda webinar (3 June) - Master the new Victorian Building and Plumbing Commission changes
Contract Administration Workshop (28 June) - Implement efficient administrative systems under tighter oversight
Building Practitioner Pre-Registration Course (17 September)Position yourself for enhanced registration requirements
Why this matters:
These three events create a comprehensive compliance strategy addressing both immediate regulatory changes and long-term professional positioning.
Combat the apartment construction timing blowouts and productivity challenges identified in the CEDA and ACIF reports:
Upskill Now Masterclass (THERMAL) (19 June) - Streamline compliance processes
FirstRate5 LIVE: Multi-Dwellings (20 June) - Master apartment project efficiency
Upskill for Whole of Home Masterclass (10 June) - Integrate complex regulatory requirements seamlessly
Why this matters:
With apartment construction times blowing out to 2.7 years, technical proficiency becomes a competitive advantage
Address apartment design quality concerns and embrace new construction methods:
Design Integration Focus:
Ask an Interior Designer: Strategic Value (11 June) - Early collaboration preventing costly redesigns
Hempcrete: Australian Construction Industry (2 July) - Alternative methods addressing productivity challenges
Ask an Interior Designer: Early Planning (21 August) - Advanced integration strategies
Why this matters:
With $800/week apartments under quality scrutiny and AI planning tools emerging, integrated design approaches become essential.
Protect your practice against the cost pressures and project delays highlighted throughout this issue:
Protecting your bottom line: Debt recovery (24 July) - Essential given construction cost pressures
Contract Administration Workshop (28 June) - Efficient project management systems
Regional networking events - Build referral networks during industry transformation
Why this matters:
With almost one-third of Victorian projects running behind schedule and construction costs at record highs, business resilience is critical.
See solutions in action:
Catalina Sustainable Home Tour (27 June, WA) - Witness 10-star construction efficiency
DMN Sundowner following the tour (27 June) - Network with innovation leaders
Member Recommendation: Choose one primary pathway based on your immediate needs, then add complementary events. The Regulatory Readiness Bundle is recommended for all Victorian practitioners, while the Productivity Acceleration Pathway suits those focused on multi-residential projects.
Government Reform Agenda: What does this mean for building designers?
Date: 3 June
Time: 2PM-3PM
Location: ONLINE
Presenter: Steven Baxas
Women of DMN Catch Up at NEXT DOOR 2
Date: Jun 6
Time: 12:30 PM
Location: Next Door At Omar & the Marvellous Coffee Bird, Melbourne VIC 3185
Upskill for Whole of Home Masterclass
Date: Jun 10
Time: 04:00PM AEST
Location: Online
Presenter: Matthew Graham
Ask and Interior Designer | The Strategic Value of Interior Designers in Project Planning
Date: Jun 11
Time: 02:00 PM
Location: ONLINE
Upskill Now Masterclass (THERMAL)
Date: Jun 19
Time: 04:00PM AEST
Location: Online
Presenter: Matthew Graham
FirstRate5 LIVE: Model Class 2 Multi-Dwellings (v3.2)
Date: Jun 20
Time: 12:00 PM
Location: Online (AEST)
Contract Administration Workshop
Date: Jun 28
Time: 8:30 AM
Location: Online (AEST)
Presenter: Geoff Hoare
The Power of 10-Star Living: Tour Catalina sustainable home!
Date: 27 June
Time: 3:00 PM
Location: Clarkson WA
Exclusive guided tour of a 10-Star NatHERS-rated, 105% net zero sustainable home
DMN Sundowner at Indian Ocean Brewery
Date: 27 June
Time: 4:30 PM
Location: Indian Ocean Brewery, 33 Ocean Falls Boulevard, Mindarie
Hempcrete: Major inroads in the Australian hemp construction industry
Date: Jul 02
Time: 12:00PM AEST
Location: Online
Presenter: Klara Marosszeky
Protecting your bottom line: Debt recover strategies for design professionals
Date: 24 July
Time: 4:00PM (AEST)
Location: ONLINE
Presenters: Drew Laing and Caitlyn Hoey
Ask an Interior Designer: Designing from the inside out - The power of early interior planning
Date: 21 August
Time: 2Pm-3PM
Location: ONLINE
Presenter: Dominique Hunter
DMN Member Dinner - Hobart
Date: 3 Sep
Time: 5:30PM
Location: 140 Cascade Rd, South Hobart
Tassie Member Breakfast - Hobart
Date: 4 Sep
Time: 8:00AM
Location: Brickworks Hobart Design Studio
Presenter: Wayne Gorman
DMN Member Dinner - Launceston
Date: Sep 4
Time: 6:00 PM
Location: 140 Cascade Rd, Hobart
Building Practitioner Pre-Registration Course for VBA
Date: Sep 17
Time: 6:00 PM
Location: Online (AEST)
Presenter: Geoff Hoare
Contract Administration Workshop
Date: Sep 27
Time: 8:30 AM
Location: Online (AEST)
Presenter: Geoff Hoare
The Sydney Morning Herald - 'A lot tougher': The type of home build that has blown out most
The Age - The government has put the brakes on a heap of projects
Brisbane Times - $800 a week for that? The battle for better apartment design
Build Australia - State of the Housing System report warns of crisis
Build Australia - Revised plumbing and drainage standard released
The Fifth Estate - AI reckons it can answer planning questions
Architecture and Design - AI adoption accelerates among Australian engineers and architects
ABC News - Hobart's urban growth boundary extended
The Sydney Morning Herald - Rome wasn't built in a day, but Vanessa's house almost was
Sourceable - Australia must develop digital engineering literacy
Sourceable - Aussie tall buildings rise up in world's best
Architecture and Design - AIA support new laws to safeguard homeowners
The Urban Developer - More Rooms, More Guests: Melbourne Hotel Sector Surges
The Fifth Estate - Australia is now the second biggest investment hotspot for data centres
The Fifth Estate - Commercial Buildings Disclosure for NABERS is set to expand
ABC News - Small businesses are making building homes more expensive
Queensland Productivity Commission - Inquiry: Construction
Productivity
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