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New changes to the building and construction industry have been announced, and their impact on the property market is expected to be good news for property investors.
On Sunday, minister for better regulation Matt Kean announced new plans to change how new buildings are constructed in NSW.
The changes, made in response to the Shergold-Weir Report by Professor Peter Shergold AC and Bronwyn Weir, include requiring building designers and engineers to declare plans of a building comply with the Building Code of Australia, builders to declare buildings have been built according to their plans, as well as the formal registration of builders and building designers.
Also included in the changes was the inclusion of a building commissioner to regulate consolidated buildings and being responsible for licensing and auditing practitioners and clarifications in the law to the right of compensation for those affected by negligent building practitioners.
“We’re making tough new laws to ensure buildings meet Australian standards, and to guarantee that people who build and design buildings have the proper qualifications to do so,” Mr Kean said.
“This plan will ensure those who control the risks – building practitioners – are held responsible for their work. People deserve to feel safe in their homes and have confidence that they are buying a quality building.
“I’m committed to getting these reforms right. I’ll be continuing my consultations with both industry and community stakeholders to make sure we get the best results for home owners.”
What does this mean for investors?
These changes, according to Peter Koulizos, chairman of the Property Investment Professionals of Australia, are expected to mean good news for property markets, and have been pushed forward through the catalyst of the situation surrounding the Opal Tower.
“It'll provide more confidence, in particular to consumers, about whatever is going to be built after this comes in, complies with all the building code standards,” Mr Koulizos said to Smart Property Investment.
“It's great that people that are designing these buildings have to be [registered]... I think that can only be good for the property industry.”
Mr Koulizos added the proposed changes would bring NSW somewhat in line with South Australia due to the need of having building professionals hold some sort of qualification, and as a result, “the [South Australian] system seems to work here very well”.
While he said there is the potential for more red tape, the fact people may be able to buy property with confidence would outweigh that caveat.