The Australian Apartment Advocacy (AAA) has welcomed the Victoria Government’s announcements of a developer bond of 2% for apartments over three storeys, which will be introduced by the end of 2025.
This will be complemented with the ability for the Building and Plumbing Commission to now order the builder to rectify defects for up to 10 years post occupancy and mandatory defect liability insurance for buildings over three storeys which is expected to come into play by 2027.
Additionally, the focus on Modern Methods of Construction (MMC) will ensure faster housing delivery, pitched at the affordable market.
Ms Reece CEO of AAA stated that the Government had recognised that apartment owners had been treated as second class citizens for too long.
“Our research demonstrates that 60% of Victorian apartments have critical defects and ultimately residents have been forced to pay for these out of their own pockets as dodgy developers and builders avoid any accountability,” Ms Reece said.
“The developer bond reflects the steps taken in NSW and ensures that there is funds to pay for any defects that are identified in the first two years post completion. The mandatory insurance, also payable by the developer, will then give peace of mind to buyers that they have long term protection.
“AAA has been conversing with Government since 2019 on this matter and we see this as a major breakthrough for apartment buyers who are considering this housing choice.”
The AAA has also been advocating for the Government to show leadership in the MMC space.
“The ability to manufacture modular apartments in a factory which operates 24/7 ensures greater quality controls and a 50 apartment complex can be constructed within six months and installed within 3-4 days” Ms Reece said.
“The construction costs for a two bedroom/bathroom plumbed in and installed is also around $250,000 mark and that ensures delivery of much need affordable housing. To encourage and facilitate this industry was one of the recommendations from our 2024 Think Tank and we are delighted to see Government take up this initiative.”
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