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Sonya Kilkenny, Victorian Government Minister for Planning and for the Suburbs outlines the benefits of prefabrication and modular construction.
At the annual Building 4.0 CRC Conference on 3 September 2024, held at Monash College City Campus in Melbourne, The Hon Sonya Kilkenny MP, Victorian Minister for Planning and for the Suburbs, highlighted the government’s strategic focus on offsite and modular construction. With several hundred industry professionals in attendance, the conference focused on the future of construction innovation, with Kilkenny’s afternoon session addressing the critical role of modern construction methods in solving Victoria’s housing crisis.
Kilkenny expressed the government’s firm commitment to offsite and modular construction as a crucial part of its housing supply strategy. She noted that Victoria’s rapidly growing population, particularly in suburban areas, has exacerbated housing affordability and availability issues, making it imperative to explore new ways of building more homes efficiently.
“We need more affordable homes,” Kilkenny stated. “And the way to achieve that is by building more of them. These homes need to be built in the right locations. For us to build more affordable homes in the right places, the status quo is no longer an option.”
Kilkenny’s message was clear: prefabrication and modular construction are not just alternatives but essential tools to boost productivity in the construction industry. “Victoria’s increased use of prefabrication will play an increasingly significant role in helping us boost the supply of new homes,” she said, noting the importance of enhancing the productivity and competitiveness of the sector.
The Victorian government’s policy focus, as highlighted by Kilkenny, includes removing regulatory barriers that currently hinder the uptake of modern construction methods. Prefabrication, with its capacity to deliver faster and more sustainable building solutions, aligns with the state’s broader goals for economic growth and sustainability. She added that these construction methods also contribute to job creation and the development of new skills within the workforce.
In an effort to streamline the process, Kilkenny pointed to the expansion of the Development Facilitation Program, which aims to simplify planning permit procedures. “We’ve expanded the Development Facilitation Program to streamline the planning permit process. Small second dwellings can now be built without a planning permit, and the available market for prefab home builders now includes over 700,000 properties.”
She also discussed the ongoing reforms within the state’s planning and building frameworks, emphasising the need for flexibility to accommodate modern construction techniques. “Victoria’s Building Regulatory Framework wasn’t developed with modern construction methods in mind,” Kilkenny said, calling for an overhaul to better reflect current construction capabilities and challenges.
A significant part of the government’s approach includes the recently launched Regional Housing Fund, which supports the construction of modular homes in regional Victoria. “Homes Victoria’s Regional Housing Fund has committed to delivering 250 modular homes in regional Victoria, supporting the construction of high-quality social and affordable housing across the state,” she said.
The government is also committed to ensuring that consumer protections remain robust while encouraging innovation. Kilkenny outlined plans for a review of the Domestic Building Contracts Act, intended to support the prefab sector while maintaining quality standards and safeguarding consumer confidence. She acknowledged the media attention around construction failures but stressed that the majority of homes are built without issue, and the government is working to bolster the Victorian Building Authority’s regulatory oversight.
“Consumer confidence is key to building more homes,” she noted. “Confidence within the industry and among consumers ensures that when people buy a home, they receive what they paid for – an affordable, safe, and comfortable home.”
Kilkenny concluded her presentation with a focus on the future. She spoke of the government’s long-term planning to ensure housing needs are met not only today but for decades to come. “We’re developing a new plan for Victoria, which will take us up to 2051,” she said. “Prefab and modular housing are key levers we’re considering to help build more high-quality homes faster.”
