Last week, Commonwealth, State and Territory building ministers met to establish a nationally consistent approach to reforming the building industry.

The building, construction, insurance and property industries have raised concerns regarding what they believe has been an inconsistent approach on issues such as combustible cladding and building standards.

The national approach is drawn from the recommendations of the Shergold-Weir report regarding industry regulation and reform, released in 2018.

These included that registration be required for all involved in the building process - from builders and site managers to architects and building inspectors.

Ministers agreed to progress the Shergold-Weir reforms through the Australian Building Codes Board.

The Urban Development Institute of Australia represents the property development sector's interests.

UDIA NSW's Greater Western Sydney & Southern Region manager Keiran Thomas said given the haste to respond to recent cladding and building defect issues in Sydney, there was a risk of making the industry regulation far too complex.

Mr Thomas cited the recent introduction of the Strata Building Bond as an example of this.

"We'd prefer in this instance that they take a little more of a slow approach to allow for more consultation with industry, to make sure what they're doing isn't going to add unnecessary red tape," he said.

"No system is ever going to ensure there's zero (building) defects across the country, so the key is what we have to do to make sure we can resolve the defects when they do occur.

"None of the recommendations that the governments are looking at implementing now go far enough in ensuring that."

Mr Thomas said the Illawarra was in a strong position, given that so much of its future housing supply is greenfield.

"So we're unlikely to see the same issues as Sydney in terms of high-rise defects... I think we're in a good spot in that sense," he said.

Read more: Property Council Illawarra calls for action on building regulation