Industry perceptions of property holding costs and the associated effectiveness of electronic development application instruments

Abstract

The impact of holding costs on greenfield residential housing developments is becoming increasingly recognised as a major factor affecting housing affordability. This has led a number of jurisdictions throughout Australia to examine methods of streamlining procedures and processes (“red tape”) in ways that curtail otherwise protracted regulatory appraisal procedures along the property development pipeline. Using a structured anonymous questionnaire, one major initiative in Queensland seeking to redress “red tape” - the development of electronic development application processes – is tested by gauging industry participant’s perceptions of their effectiveness. This information is also used to examine linkages that exist between various planning instruments, the length of regulatory assessment periods, and perceptions concerning housing affordability more generally. In addition, these results are able to be triangulated against quantitative data modelling focussed on the consequences of extended assessment periods as a typically critical component of holding costs.