Builders need a clearer pathway to scale if Victoria is to meet its housing targets

Victoria will struggle to accelerate housing delivery unless regulatory settings support builder capacity, project feasibility and confidence among buyers and investors, according to Victorian developer-builder Kincaid.

The Victorian Government’s Housing Statement set a target of delivering 800,000 homes over the decade to 2034, but Kincaid Founder and Director Kris Burt said increasing supply required more than land and planning reform.

“The industry is being asked to deliver more homes, but you need the whole housing system working together to achieve that. Builders need the capacity to build, developers need projects to be feasible, financiers need confidence and, critically, buyers and investors need the confidence to commit,” Burt said.

Under Victoria’s Minimum Financial Requirements (MFR), introduced from 1 July 2026, domestic builders must demonstrate sufficient financial capacity to support their approved Maximum Construction Capacity (MCC).

Kris said strong financial safeguards were important, but the framework should also recognise the trading history, demonstrated delivery and operational capability of established builders seeking to grow.

“A balance sheet is an important measure, but it is not the only measure of whether a builder can safely and responsibly deliver more homes. We need a system that protects consumers while giving proven, financially sound builders a practical and timely pathway to scale,” said Burt. 

Kris said the other side of the housing supply equation was demand, with higher interest rates and ongoing regulatory changes contributing to uncertainty among buyers and investors and making it harder for developers to achieve the sales required to get projects underway.

“When buyer and investor confidence falls, sales slow. That has a direct impact on development feasibility because many projects rely on presales to secure finance and move into construction. You can have a viable site and a builder ready to deliver it, but if the sales aren’t there, the project can’t proceed. That ultimately means fewer homes being delivered,” said Burt.

Kris said government should consider the cumulative impact of property taxes and regulatory changes on investment decisions and focus on settings that encourage housing investment and give the market greater certainty.

“If government wants more housing delivered, we need to make it attractive for people to invest in new housing. Greater policy consistency, targeted investor incentives and a more competitive tax environment would help rebuild confidence, support presales and improve the feasibility of new projects. Give the market the opportunity to stabilise and builders will be in a stronger position to deliver higher volumes,” Burt said.

Kincaid also believes regulatory processes need to evolve alongside modern methods of construction if Victoria is to realise their potential productivity benefits.

The company recently completed five prefabricated double-storey townhouses, with approximately 85 to 90 per cent of each home manufactured off-site.

“Our first five prefabricated townhouses took approximately eight weeks to manufacture and construct. There is limited value in finding ways to build homes significantly faster if the systems around construction continue to operate at the same speed.

“If Victoria wants to increase housing supply, we need to look at the full equation. Create confidence for buyers and investors, improve feasibility, give capable builders a pathway to scale and allow the industry to get on with delivering the homes we need,” Burt said.