CEO Update 7 December 2018
With 2018 coming to an end, at the MBA we are finalising some important 2018 projects and planning for the year ahead.
Last week we held our final Presidents Lunch for 2018, attended by Federal Safety Commissioner Grant Lovelock. Grant updated us on the operations of the Federal safety accreditation scheme and how it is leading to improvements in safety in the construction industry.
We also finalised our submission to the Government's review of the Lease Variation Charge system and met with ACT Treasury staff to discuss industry's concerns with the current LVC system and some possible solutions. Our aim is that the review will lead to a simplified LVC system.
Hearings were held this week into the Draft Territory Plan Variation No. 350. This proposed change affects certain residential leases by reducing their development potential. Unfortunately DV350 was introduced with interim effect meaning many small builders have been impacted by the changes after already investing in land, holding costs, design and planning consultants. The MBA will be advocating for a transition arrangement to be included to allow projects which were already underway when the changes were introduced to be completed under the previous Territory Plan rules.
Looking ahead to 2019, the ACT Government will soon commence work on a review of the ACT Territory Plan. Ahead of that review, Government has this week released the ACT Planning Strategy. The Strategy sets out the high level vision for the ACT.
The property market is shaping to be an interesting year in 2019. While most of Canberra's property and construction industry is busy, finance availability and slowing demand from investors has the potential to impact the Canberra market in 2019.
The MBA will be releasing our forecasts for the Australian and ACT markets early next year, and we look forward to sharing our outlook for 2019 with members soon.