From the CEO
Following last week’s Housing Roundtable, I met with the CEO of Housing Australia this week to share the state of play for development ready land supply in WA and some of the challenges we see in meeting our targets under the Housing Accord.
As we released to members earlier this week, I shared our latest quarterly figures from the Urban Development Index which are a glimpse of what is to come. Very little titled land stock remains on the market with a real proposition of not having enough lots to meet demand within the next six months if demand continues as we expect it to. Prices are rising with lot prices in the Perth metro up 5.7% over the June quarter and 10.5% higher than 12 months ago.
Construction capacity in WA is approximately 15-16,000 dwellings per year. We need to deliver at least 24,000 in WA from next year. As I shared last week, with a perfect storm of constraints facing our construction sector it is unlikely we will see any significant increase in capacity in the short term.
Speed to market is critical. We need to urgently focus on removing the friction points in the supply pipeline which UDIA WA are laser-focused on addressing with government. We need commitment to deliver lead infrastructure that will unlock the volume of housing supply we will need over the next five years and beyond. As a united development & construction industry, we need to pull out all the stops to increase the workforce.
Speaking of workforce, the Department of Treasury has asked that UDIA WA share the job advertisement for the new Director of Treasury’s Housing Supply Unit. The new unit will oversee the development of market-wide housing policy, including measures to boost housing supply, improve choice and affordability, and support the workforce needed to deliver the State’s economic and service delivery priorities.
This role is a critical one for our industry and I encourage you to share with anyone you think has the skill set to help navigate WA through one of the most challenging periods in recent history.
Latest data highlights critical supply issue
The latest edition of UDIA WA’s Urban Development Index (UDI), available exclusively to members, highlights increasing lot sales in WA in the September 2023 quarter with the number of lots sold 70% higher compared with the September 2022 quarter.
The average price of lots sold also increased in the September 2023 quarter to $257,533 (5.7% up QoQ; 10.5% up YoY) however lot prices in WA are still significantly lower than our Eastern States counterparts.
In terms of lot supply the UDI shows that in the next 12 months there is a potential for a further 5,800 lots that will be available for sale, made up of those either already on the market, set to go on the market or earmarked for construction in the next 12 months. This is around 4% down on the number recorded 12 months ago.
David Cresp, Director at Urbis, provides this quarter’s executive summary looking at the impact of population growth on the property market here as well as rounding up the key stats from the latest quarter.
Mr Cresp was joined by colleagues Breton Fleming (Urbis’ Melbourne office) and Tim Connoley on Tuesday, providing an exclusive briefing to UDIA WA Members in relation to the findings from this quarter’s UDI and their projections for the market in the coming years.
We extend our thanks to David and the Urbis team for their insights and you can view some of the images from the event, here.
Read the latest UDI here.
To read UDIA WA’s media release that accompanied the UDI release, click here.
UDIA WA presents to DWER
On Friday 27 November, our Executive Director – Strategy and Policy Sarah Macaulay presented to the Department of Water and Environmental Regulation Senior Leadership Team as part of their tour of the Peel region.
Discussion in this session focused on development in the Perth-Peel Region, and the respective challenges of industry and government around balancing the needs of an expanding population with factors including environment/water/infrastructure.
There were presentations from the Peel Development Commission, DPLH, DPIRD, Peel Harvey Catchment Council and Peel Alliance (representing local governments in Peel Region), and UDIA – with Sarah speaking to WA’s housing crisis, the challenges for our industry and need for collaboration to deliver diverse and affordable housing supply.
REA Report provides exclusive market update
This week UDIA WA were pleased to provide our members with the second edition of a new research report compiled by realestate.com.au exclusively for UDIA WA members.
The new report titled The Western Australian Market: Data and Insights provides in depth analysis of property market performance across WA with realestate.com.au noting that the past three years have been among the most turbulent in Australia’s economic history and much of this volatility has played out in the property market.
Shifting conditions have also played out in the development sector over the past three years. Low interest rates and government supports – most notably the Home Builder Grant – bolstered the demand to build new homes.
Despite the current challenges faced by the development sector, demand for new homes will be supported by Western Australia’s growing population.
Read this new research report here.
LandNow launched in WA
Last week UDIA WA were pleased to attend the official launch of homegrown prop-tech company LandNow, which is bringing builders and developers together with a live online marketplace to manage, search and secure land.
Led by Tony McEntee, the founders of LandNow saw the opportunity to provide the industry with a far better solution to the paper-based land inventories relied on by a huge chunk of the industry.
The founders, including Tony McEntee, Melbourne-based Paul Wilson and Gold Coast-based Peter Joseph, along with advisory board members Steve Collier and Kylie Davis, have designed and built the proprietary software from scratch. The feedback from the industry during development has ensured it is a tailor-made solution for the industry.
Mr McEntee explained that the team decided to initially launch the product in Western Australia given the strong B2B networks that exist between builders and developers.
“The market is very nimble, and given our networks, real and honest feedback could be received during development, ensuring the platform meets the needs of the industry,” Mr McEntee said. “WA buyers are extremely lucky, given the quality of estates and housing produced by some of the country’s leading businesses.”
For more information regarding the launch of LandNow, read the media release here or visit their website here.
Latest Urban Intelligence report released
At the end of last week UDIA WA released the October edition of our monthly Urban Intelligence Report which provided an update on the key stats and facts impacting the development industry.
Also included in the edition was a feature article by UDIA Executive Manager Research WA and National Toby Adams who analyses the ‘perfect storm’ of factors that have collided to drive WA’s new build, multi-unit and apartment sector to the lowest levels of completed annual supply recorded over the last twenty years.
You will also find the latest Land Snapshot data; House and Land Settlement data; Economic trends, including building approvals, lending indicators and much more in this edition.
Read the latest Urban Intelligence here.
Subiaco named Australia’s most liveable LGA
According to a new survey of 26,000 respondents around the country, Subiaco has been named as the most liveable LGA in Australia.
The survey, conduced by Place Score, asked residents to rate their community on a range of factors with Subiaco coming out with a liveability index score of 81, significantly higher than the national average of 67.
Among the reasons for Subiaco’s liveable nature included its connection to other areas, as well as the amenities provided by shops, cafes, restaurants and services.
The survey results also highlighted that residents are preferring higher density neighbourhoods with Australia’s top 10 densest LGAs experiencing 8% better liveability than the national average.
This drive towards a greater density provides excellent background ahead of our final Industry lunch for 2023 tomorrow as we discuss the reinvention of the great Australian dream with a debate on density, design and developing for the future.
Joining Subiaco in Australia’s top 10 LGAs was Vincent in 6th and Cambridge in 8th while Fremantle and Melville make up WA’s top 5 LGAs according to the survey.
Spaces limited on exclusive site tour
Time is running out for anyone looking to join us in visiting some of WA’s best projects in our exclusive site tour of four Award Winning projects.
The tour will visit four of the UDIA WA 2023 Awards for Excellence Winners, including Exchange at Curtin University by Curtin University, Montario Quarter by DevelopmentWA, Victoria House by Hesperia, and ONE Subiaco by Blackburne Property Group.
The tour includes:
- Exclusive tour of 4 different projects in Perth
- Bus transfers between projects and back to Curtin if required for parking purposes
- Opportunity to talk face-to-face with the project directors and gain a better understanding of what makes these projects stand out.
For more information and to book, click here but be quick as tickets are extremely limited with many spaces on the tour already filled.
Advertise in The Urbanist
The upcoming December edition of UDIA WA’s The Urbanist magazine will focus on ‘New Trends’ and explore the new innovations, technologies and ideas set to shape the future of the development industry and in turn community creation.
There are advertising opportunities available in this edition and if you book before November 17, you can take advantage of our special book 2 full pages and receive a third page free offer.
For more information and to book, please email Chris Thurmott on cthurmott@udiawa.com.au or click here to view all of our current advertising opportunities and packages.
One month of Early Bird left
There is just one month left to save $330 on your tickets to the UDIA National Congress in Melbourne with Early Bird ticket sales set to close on Friday 1 December.
The 2024 Congress is set to take place from 18-20 March at Crown Melbourne and will feature high-profile speakers focusing on the urban development industry in Australia, international case studies, and what’s next in terms of innovation and market demand.
The UDIA National Congress also provides unrivalled branding exposure for your business with excellent sponsor and partnership opportunities available including within the trade exhibition.
The trade exhibition provides an opportunity for you to showcase your brand and engage with key influencers and decision makers in the development industry. It is strategically positioned to create maximum exposure amongst delegates. Breakfast refreshments, catering breaks and lunch will all be served in the Exhibition hall creating valuable relationship building opportunities.
Space is selling fast, so act today and don’t miss your opportunity to get in front of the people you want to meet with! For more information and to request a copy of Expo Space contact Nichola Byrne on nbyrne@udia.com.au