Historic cash rate decision
For the third time in five months, the Reserve Bank of Australia (RBA) chose to reduce the official cash rate to leave it with a 0 at the start for the first time in Australian financial history.
The decision was made by the RBA board on Tuesday to cut the rate by 25 basis points leaving it at 0.75 per cent in a bid to reduce unemployment, boost wages growth, stimulate household spending and lift inflation.
UDIA WA welcomed the cut when it was announced but acknowledged there is still more that needs to be done to truly provide a boost to the flagging property market in WA.
For more information about UDIA WA’s position on this announcement, click here.
Meet and Greet with Leader of the Opposition
UDIA WA CEO Tanya Steinbeck and UDIA WA Director of Policy and Research Chris Green met with the Hon Liza Harvey MLA for the first time since her ascension to Leader of the Opposition this week.
The meeting provided a great opportunity for the UDIA to present some of the issues the industry is facing and we were able to give Ms Harvey an overview of the policies that would most benefit the development industry if her government was to gain power at the next election.
UDIA will continue to maintain a close link with Ms Harvey leading up to the next election to ensure the issues and priorities of the development industry are front of mind.
Industry bodies align for market support bid
In an unprecedented collaboration, the HIA, MBA, PCA, REIWA and UDIA have joined forces to prepare a joint submission to Ministers Tinley and Saffioti with a number of policy setting changes to assist stimulating activity in the residential property market.
The CEOs of all organisations will jointly present the paper to the Ministers on 16 October in an effort to drive jobs and economic activity in the sector after years of flat market conditions.
UDIA will keep members updated on the progress of this collaboration and we hope to have some positive news from the process to report soon.
Last chance to get involved with UDIA Land Report
You only have until 5pm Monday to get involved with the October Land Report lift out that will feature in both The Weekend West and The Sunday Times newspapers on the 26th and 27th October 2019.
This is an excellent opportunity for our members to promote their projects to an audience of over 500,000 through this lift out.
The content will incorporate exclusive UDIA data on lot sales and construction activity across the Perth Metro growth corridors, along with a range of UDIA commentary on the current property market and future predictions.
UDIA is also working with the editorial team on articles that will cover a range of themes including lifestyle features in new areas, community infrastructure, housing diversity, new materials, sustainability and affordability.
Advertisers will also have an opportunity to provide editorial articles.
More information and contact details for the advertising team at The West can be found here. Please note the deadline for booking is 5pm Monday October 7, 2019.
The Land Report is an initiative driven by UDIA to provide our members with a targeted opportunity to communicate with customers. The last edition in May 2019 was a fantastic showcase of what is on offer to the current market and can be viewed here.
Brabham Development breaks new ground
First sod has been turned by Housing Minister Peter Tinley on Stage One of the Brabham Development which will see 600 lots developed close to the future METRONET Whiteman Park station.
Once fully completed the development is expected to yield around 3000 homes on 2600 residential lots and create and support 1900 direct and 5900 indirect jobs. The development is a joint partnership between Department of Communities, Peet Ltd and Perron Group and supports the Government’s METRONET and Affordable Housing and Jobs Package.
Minister Tinley said Brabham would be a major transport-orientated development linking the Swan Valley to Perth and provided a significant boost to the State’s stock of affordable housing in Perth.
Town Teams make it happen
On Wednesday UDIA members attended a briefing on how developers can work constructively with local governments and communities to create great places through the creation of Town Teams.
There are currently 34 town teams and the movement is growing as highlighted during the session led by Town Team Movement Co-Founder Jimmy Murphy and Town Team Movement Organising and Operations Manager Emma Gibbens.
During the presentation the pair highlighted ways Town Teams are working to create positive ‘yes’ cultures and used case studies from inner city, suburban and regional contexts and discussed the future of a place-led approach.
More information on Town Teams here.
Job vacancies on the rise
One of the biggest incentives for people looking to move to a new area is the number of available jobs and the last two years have seen job vacancies in WA lifting 47.7 per cent to 28,500 in August 2019, according to the latest figures from the ABS.
This rise also signals the 12th consecutive quarter of positive year-on-year growth in the number of job vacancies available with a 3.3 per cent annual growth rate as at August 2019.
The number of new jobs available, in part, is down to the rise in mining and mineral expenditure in WA, which as has been previously stated by UDIA WA should lead to a rise in the property market within the next 12 months or so.
Swan Valley in line for improvements
Tuesday saw the release of the Swan Valley Action Plan by Planning Minister Rita Saffioti in response to the Swan Valley Planning Review which included a number of recommendations to provide consistency in planning decisions for the region’s residents and businesses.
The main aim from the Action Plan is to cut red tape and provide a contemporary planning framework for the region while preserving the region’s unique rural character.
As part of this the Action Plan includes:
- A new Swan Valley Bill which will provide clear planning guidance, clearly define ‘rural character’ and outline appropriate scale of tourism and development;
- A new Swan Valley planning scheme that will include new land use zones and definitions, guide new ventures and encourage innovative proposals;
- An independent Swan Valley planning authority, established as a sub-committee of the Western Australian Planning Commission to streamline decision making on planning matters and assess development applications; and
- A strategic leadership group to champion the Swan Valley and provide a strong voice for a range of issues including viticulture, equine uses and tourism.
More information here.
Drop in building approvals highlights work to be done.
Figures from the Australian Bureau of Statistics (ABS) highlight the extent of work ahead of the WA property as building approvals for houses in August fell to 905, a 3.4 per cent Month on Month and 28.1 per cent Year on Year drop.
This coincided with the value of residential building jobs for new houses falling 5.2 per cent Month on Month to $259.24 million, 26.4 per cent below the figures at the same time last year.
With both of these figures falling in August, it certainly highlights the challenge ahead for WA and amplifies UDIA’s position that while the RBA dropping the cash rate was a positive move, it is just one piece in the puzzle.
UDIA Professional Development Program set to start once again
UDIA WA’s long running Professional Development Program is set to get underway for another year as the first of the six module sessions starts on Monday October 7.
The popular program is specifically designed for the WA context and introduces participants to the various areas of knowledge required to operate effectively in our local residential development industry.
The six-day program runs each Monday over six weeks, with participants able to enrol for single one day modules, or for the complete program. Modules 1, 4 and 6 attract REBA CPD points and the full program is also aligned to the BSB 51415 Diploma of Project Management delivered by Swinburne University of Technology.
Led by experienced presenters from the WA property development industry, the course provides practical lessons on how to manage the project lifecycle and understand the principles of commercial awareness, time, quality and cost.
Registrations for the first module are now closed and registrations for module 2 close tomorrow, Friday October 4. More information available here.
We value your feedback!
UDIA is currently working on several submissions on behalf of members. We encourage you to forward any feedback on these items to policy@udiawa.com.au
- Draft SPP 7.2 Precinct Design, Guidelines and Discussion Paper (here). Submissions close Tuesday 15 October, 2019.
- DWER Climate Change in Western Australia – Issues Paper (here). Submissions close November 29, 2019.
- Draft East Wanneroo District Structure Plan (here). Submissions close December 20, 2019.
UDIA providing insight to the State Of Australian Cities Conference
At the start of December UDIA WA CEO Tanya Steinbeck will be part of a Plenary Panel Discussion that kick starts the last day of the State Of Australian Cities Conference 2019.
The topic of the discussion is Urban Disruption and Innovation: A View from the Western Edge with Ms Steinbeck to provide insights on behalf of UDIA and our members about how the development industry is leading the way in the creation of versatile and consumer-centric cities.
For more information, visit here.
City of Cockburn recognised as a Coastal Planning Leader
This week saw the release of the 2019 Western Australian Coastal Awards for Excellence, presented by the Department of Planning, Lands and Heritage.
Held every two years these awards celebrate the achievements of groups and individuals involved in protecting and managing Western Australia’s coast and UDIA WA was pleased to see the City of Cockburn recognised for its efforts.
The City of Cockburn was the joint winner of the Coastal Design, Heritage and Tourism award for its Coogee Maritime Trail project which is located in the Port Coogee development. It picked up the award due to the project providing an accessible, near-shore marine tourism and education experience that is unique in Western Australia.
ABN Group moves up to a podium finish
Last week saw the Housing Industry Association (HIA) release its HIA-COLORBOND® steel Housing 100 Report and saw ABN Group once again flying the flag for Western Australia.
As the highest ranked WA-based builder for the second year running, ABN Group finished in third spot this year with just under 3000 building starts in the past 12 months. While this year’s figures are slightly down on the ones recorded last year, considering the challenging conditions facing the construction industry in WA, the number of building starts recorded by the ABN Group is an excellent achievement.
Site security update
Building and Construction crime statistics for September revealed a continued reduction in reported theft on metropolitan building sites with just 15 reports for the month.
These were made up of four reported burglaries, seven reports of stealing and four reports of damage with 70% of offences in the southern suburbs. It is the view of PACT that the reduction in the number of reported crimes can be attributed to the sustained and ongoing reporting of crime, identification of high crime areas allowing for the right resources to be allocated to these areas to reduce crime.
Outside of the metropolitan area and the state’s southwest has seen a spike in building site crime with 6 reported offences in September made up of 1 reported burglary, 3 reports of stealing and 2 reports of damage across South Bunbury, Dalyellup and Australind areas.
Ensure you report all building and construction industry crime and report all suspicious activity, for more information click here.