High-rise development may bring long-term risks, construction firm owner says
Proposals to relax planning restrictions in Australian cities, aimed at reducing home prices by $100,000, could have unintended negative consequences for the construction sector and future homeowners, a builder has warned.
The Grattan Institute recently released a report recommending the removal of building height limits in urban areas to address the national housing shortage. The think tank suggests that allowing taller residential developments could significantly increase housing supply and lower costs over the next decade.
However, Scott Callen, a construction company owner, has voiced strong concerns about the approach. “Hypothetically, this sounds good,” he told Yahoo News. “In 10 years, houses could be $100,000 cheaper, and offer more opportunities for people to live closer to the city.
“But with a change like that, you also get the double-edged sword of building at speed, creating quality failures. It’s not a practical and reasonable solution to deal with a significant housing crisis.”
Callen pointed to the example of Mascot Towers in Sydney, where rushed construction led to major structural problems and forced residents to evacuate. He argued that removing height caps could result in similar issues, with short-term gains outweighed by long-term risks.
He also questioned the reliability of predictions about future housing prices. “The building industry now doesn’t look like it did 10 years ago,” he pointed out. “Saying it’ll save you $100,000 in 10 years’ time almost makes me laugh because it’s comical, no one can forecast what housing next year is going to look like at this point.”
Currently, most residential land within 30 kilometres of Sydney and Melbourne is restricted to three storeys or fewer, while in Adelaide, Brisbane and Perth, the limit is generally two storeys. The Grattan Institute argues that removing these caps would allow more people to live near city centres and make better use of available land.
Brendan Coates, housing program director at the Grattan Institute, defended the proposal. “Australia needs a housing policy revolution,” he said. “The equation is simple: if we build more homes where people most want to live, housing will be cheaper and our cities will be wealthier, healthier, and more vibrant.”
Despite these arguments, Callen remains sceptical about the impact on families and urban infrastructure. “High-density, multi-level living doesn’t promote families,” he stressed. “People are really reluctant to have children when they’re living in places like this. Over-condensing already highly populated areas with very limited infrastructure, with roads that are already bursting without enough green space, isn’t ideal.”
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