From the CEO
Today I had the opportunity to speak to 200 policy practitioners across State Government about the constraints & policy challenges that face WA in delivering more homes, faster as part of the annual Public Sector Economic Forum.
The scene was set with an economic overview by the Under Treasurer that reinforced WA’s envious position of having the best balance sheet in the nation, the ongoing strength of our labour market with the lowest unemployment rate in the country and that we are experiencing our fourth year of above average economic growth.
Then the sobering reality that we know all too well. Iron Ore royalties make up one quarter of all state revenue. Just Iron Ore – of which the price is taking a hammering therefore too will our coffers. Our over-dependence on China continues as vehemently as their economic decline. Property prices in China have declined for 28 months in a row. Economic diversification is needed, just as it was needed a decade or two ago.
Then we spoke about housing. How do we fix the problem? I quickly taped back together my broken record and spoke about the need for a whole of government approach, strategic lead infrastructure planning & coordination, streamlined environmental approvals and you know the rest.
I added some more sobering news. We have the lowest ever number of lots on the market. Last year, we sold over 12,000 lots. If everything was to go perfectly in terms of delivery, we may have 9,000 lots available in the next 12 months. But life ain’t perfect. The infrastructure isn’t ready. Apartments still don’t stack in the areas we need them to. Construction costs are not going down. We wait for unit prices to go up further. WA is no longer the most affordable housing market in the country.
What to do. Here’s some ideas we came up with for WA. Here’s some ideas the NSW Productivity & Equality Commission released yesterday because they have the same problems we do and outline some solutions that look eerily familiar.
The problems are more acute, the solutions haven’t changed. Successful execution remains missing in action. As any more housing will be until we learn how to just get stuff done.
Tanya Steinbeck
UDIA WA Chief Executive Officer
Urban Housing Index
UDIA National recently launched the latest edition of the UDIA Housing Index (UHI) which provides a quarterly ‘health check’ on the state of Australia’s new build housing markets. The June Quarter UHI results had Western Australia once again recording the highest UHI reading across all States and Territories (13 points higher than the national average) which is underpinned by the maintenance of an especially strong demand profile. Whilst this positioned WA as the best performing housing market in the nation in the June Quarter, considerable supply side weakness continues to weigh negatively on overall WA housing market health – with a UHI Supply Sub-Index reading firmly in the ‘weak’ performance band.
You can access the UDIA Housing Index June Quarter report, key insights and interactive UHI charts and dashboards here: https://udia.com.au/research-insights/uhi/
Emerging Leaders course registrations close tomorrow!
Register today to be part of the first cohort through our new Emerging Leader’s Program.
UDIA WA’s new Emerging Leaders course is specifically designed for property industry professionals, provides one-on-one opportunities with industry mentors, and is a fantastic value for money investment in your, or your team’s, professional development.
Tailored to the Development Industry, created in partnership with AIM WA, the Emerging Leader’s Program is for anyone looking to build their leadership skills within the property industry. The full day course includes presentations from AIM WA along with industry leaders Construction Training Fund’s Tiffany Allen & Mirvac’s David Parsons sharing their experience.
UDIA WA members can build on the one-day course, over the course of the following five months, with a one-on-one mentoring program where participants will be matched with industry mentors.
Our industry mentors include:
- Richard Pappas, Managing Director Celsius Property Group & UDIA WA President
- Tiffany Allen, CEO Construction Training Fund
- Lex Barnet, Practice Fellow TBB
- Paul Lakey, Executive Director Lakey Management
- Tamara Vreeken, Director Niche Planning Studio
- Richard Milloy, Executive Manager NBN
- Vivienne Mossman, General Manager UPD
Registrations close Friday 13 September!
Don’t miss the opportunity to be part of the first cohort.
Exploring the Public Realm
The latest edition of The Urbanist is now available to our members! This edition explores the public realm – the importance of shared spaces that are designed for everyone and create a sense of place.
Delve into how community spaces are designed – rediscover the beauty in public spaces, explore the past, present & future of green spaces in NYC, reconsider what makes a street safe.
Explore the new vision for Perth’s riverfront with Hassell Principal Anthony Brookfield, look at how we can design spaces for everyone with Anna Chauvel & Dr Dorina Pojani and rediscover the beauty of the public realm with globally renowned architect and urbanist Dhiru Thadani.
WAPC Chair retires after 50-year contribution to WA Planning
WAPC Chair David Caddy is set to retire on 31 December 2024. First appointed in 2018 into the role of Chair, Mr. Caddy led the implementation of the Cook Government’s planning reform that aimed to reduce red tape and simplify the planning process for significant development proposals.
“Mr. Caddy has overseen significant changes in the WA planning system which constantly demands response to contemporary and changing community needs,” Minister for Planning the Hon. John Carey said. “I congratulate David on his terrific career and wish him well in his retirement.”
On behalf of our members, UDIA WA sincerely thanks David for his contribution to the industry, willingness to collaborate and support for the Institute. We wish David the very best in his future endeavors.
UDIA WA welcomes transfer duty extension for those affected by building construction delays
UDIA WA welcomes the announcement by the State Government in relation to allowance of discretion by RevenueWA when imposing transfer duty and late penalty tax on off-the-plan developments impacted by construction delays. This announcement follows engagement by UDIA WA with Minister Ellery’s Office in recent months on behalf of members who had raised concerns that the 36-month timeframe was going to impose a significant financial burden upon their buyers considering current constraints. Ensuring apartment buyers are not burdened with transfer duty prior to settlement is important in ensuring fairness for buyers of critically need infill housing supply.
As our members will be aware, when buying into an ‘off-the-plan’ development, purchasers are required to pay the transfer duty within three years of their contract date or when settlement occurs, whichever occurs first. However, due to unforeseen construction delays, many settlement dates have extended beyond the original timeframe.
To support buyers in these situations the Commissioner of State Revenue is exercising discretion to provide extra time through a payment arrangement. For arrangements entered into until June 2025, interest normally charged on a payment arrangement will be remitted for buyers in developments that remain unfinished beyond three years of the contract date.
“Acknowledging the current market conditions, we continue to provide support to Western Australians impacted by construction delays, Housing Minister John Carey said, “This initiative will ensure eligible buyers are supported while they wait for their off-the-plan development to be built.”
“We understand the difficulties faced by some Western Australians due to construction delays on apartment developments. Finance Minister Sue Ellery said, “We encourage anyone who believes they may be eligible to contact RevenueWA to discuss their situation.”
UDIA WA 2024 Awards for Excellence Gala Dinner
The night is almost here! We’re only two sleeps away from meeting this year’s winners of the 2024 Awards for Excellence.
We want to wish all the nominated projects, teams, and individuals the best of luck on the Development Industry’s Night of Nights!
All members will receive a digital version of the UDIA WA Awards for Excellence 2024 Showcase Magazine on Monday, that will have all the details for the finalists and winners. So, please look out for that in your inbox come Monday to get all the news.
We look forward to celebrating with everyone this Saturday night!
Public Sector Economic Forum 2024
Today, UDIA WA CEO Tanya Steinbeck participated in the annual Public Sector Economic Forum hosted by the Department of Treasury. The half day event is an opportunity for Government and Non-Government speakers to inform public servants of emerging and longer-term issues facing the West Australian economy. Michael Barnes, Under Treasurer, set the scene for the day providing an overview of the state of the WA Economy. Following Michael’s presentation, Tanya was joined by Professor Steven Rowley (Director, Australian Housing and Urban Research Institute Curtin University), Michael McGowan (Executive Director WA, Housing Industry Association), and Emma Colombera (Director, Housing Supply Unit for the Department of Treasury) for a panel a discussion that considered the current housing supply crisis, and the constraint this puts on economic growth.
Themes during the panel discussion included supply constraints, construction approaches and innovation, shifting demand and regional housing pressures.
We appreciate the opportunity from the Department of Treasury to participate in this event.
September Committee Meetings Update
This week, five of UDIA WA’s Operational Committees convened for their fourth meeting of the year
Environment & Climate Action Committee
Key items included:
- UDIAs recent engagement with the Government on environmental matters
- Discussions on a strategic industry approach to offsets
- Discussion on recently announced Environmental Protection Act 1986 amendments
Infrastructure Committee
Key items included:
- Discussion on recent engagement with local governments on matters related to clearances
- Updates from Western Power and Water Corporation
- Discussion around ongoing committee work on DCPs
Professional Development Committee
Key items included:
- Updates on upcoming PD programs
- Discussion Leadership program and feedback on mentoring documents
- Discussions on Marketing, Promotion, and Sponsorship Strategies of PD programs
- Update on engagement with DevelopmentWA
Infill Development & Precincts Committee
Key items included:
- Discussion on the Housing Diversity Pipeline Round 2
- Discussion on supply-side ways to assist the industry to deliver homes
- General discussion on what is happening on the ground and how the construction situation is evolving
Masterplanned Communities Committee
- The MRS Amendment Bill and associated changes
- Various regulatory changes impacting the delivery of housing
- Updates from the committee’s working groups and next steps for those groups
Aboriginal Heritage Survey Program
The State Government has committed to a 10-year Aboriginal Heritage Survey Program (AHSP), managed by the Department of Planning, Lands, and Heritage (Department).
The AHSP aims to assist with the recognition, management, protection, and preservation of Aboriginal sites in Western Australia. The AHSP will undertake area surveys to record Aboriginal heritage for the inclusion on the Aboriginal Cultural Heritage Inquiry System (ACHIS) and the Register of Places and Objects. By completing these surveys, the ASHP endeavours to ensure Aboriginal heritage information can be accessed readily and relied on for statutory approvals under the Aboriginal Heritage Act 1972 (Act).
Conducted by qualified heritage professionals in consultation with the native tile party and participation of Aboriginal people, the results will be made available in the Aboriginal Heritage Survey Report.