From the CEO
The impact on customers who may experience the unfortunate demise of their home builder as a result of the perfect storm of COVID, skills & materials shortages was recognised by the State Government this week. Commerce Minister Roger Cook announced reforms to the home indemnity insurance scheme which whilst an additional cost to industry, will assist in providing a much needed confidence boost for prospective home purchasers moving forward.
UDIA WA’s Built Form Advisory Group is currently considering the complexities around expanding indemnity insurance to cover medium and high density housing. Defects are a very common issue experienced in all forms of construction, normally well covered by the defects liability period, the developer or builder. In Western Australia, we are fortunate that we have not experienced the degree of defect challenges experienced in NSW. Apartments remain a great housing option in an environment of low supply and price pressures. UDIA will work with the State Government and industry on options that may give purchasers a greater degree of confidence in the quality of our developments.
On another note, UDIA WA together with our Built Form Advisory Group members were successful in obtaining an exemption from the new NCC Energy Efficiency provisions for Class 2 buildings until 30 April 2025 to retain the collective average of 7 stars for buildings for more than 6 storeys and an average of 6 stars for buildings 6 storeys of less. Together with HIA, UDIA successfully advocated for a delay in compliance with the Volume Two of the NCC 2022 including the new energy efficiency provisions until 30 April 2025. In addition, mandatory liveable housing provisions will not apply in Western Australia.
We recognise that sustainability and accessibility are important factors in improving the liveability of our homes. With the volatility in our construction & housing market at the moment, now is not the time to force these changes on an industry already overloaded with policy reform, regulation & compliance. Any more increases to the cost of construction will not just make a home more liveable, it will likely make it unaffordable for many.
UDIA in action
The last week and a half have been packed with activity in the UDIA WA office due to all of our Standing Advisory groups meeting during the period.
Our advisory groups are a core part of UDIA WA’s policy and advocacy work and we look forward to sharing all of the group’s updates along with strategic committee updates in our Annual Report next week following the AGM.
We are also looking forward to hosting a joint workshop of all three Strategic Committee’s and staff in mid-November to further progress UDIA WA’s ESG framework.
The workshop will set the direction for UDIA WA over the next three years with regards to our Environmental, Social, and Governance strategy taking in the knowledge and experience of all of our Strategic Committee Members and Staff.
Member Briefing spots close tomorrow
UDIA WA’s exclusive Member Briefing in collaboration with Urbis is next week, where we officially present the latest figures from the September edition of the Urban Development Index.
During this member briefing Perth’s leading property economists David Cresp and Tim Connoley of Urbis will review the Urban Development Index results for Q3 2022 and provide an overview of where they see the Perth greenfield land market heading and what will be the key influences going forward.
The Urban Development Index is a quarterly research publication released by the Urban Development Institute of Australia (UDIA WA), which covers Residential Land Activity. It provides a comprehensive analysis of land sales activity in the state, as well as current property and economic conditions. Data and analysis includes land sales, lots on the market, and developer lot construction intentions over the next 12 months.
Networking drinks and light refreshments will be provided after the session.
This session is free of charge for UDIA WA members only.
Spots are limited and RSVP’s are essential. To confirm your place please use the link below register. Registrations close Friday 21 October.
Register your attendance here.
Land Report to be published this weekend
The highly popular Land Report is set to publish in The West Australian this weekend including core data and insights from UDIA WA.
The Bi-Annual publication provides an overview of the current land market across Perth and uses the latest land sales data from the September edition of UDIA WA’s Urban Development Index.
In addition to our exclusive data, the Land Report features a variety of thought pieces and articles with comments and insights from UDIA WA CEO Tanya Steinbeck and UDIA WA members.
You can catch the printed edition in Saturday’s The West Australian and we will post the link to the digital edition next week.
Insurance reforms to better protect home owners
This week the State Government approved reforms to Western Australia’s home indemnity insurance scheme to increase the maximum payouts to homeowners.
The changes mean eligible homeowners may be entitled to up to $40,000 for lost deposits, and up to $200,000 for incomplete or defective works in the event their builder dies, disappears, or becomes insolvent. The reforms aim to better protect homeowners.
Under the Home Building Contracts Act 1991, a builder must take out home indemnity insurance in the owner’s name before accepting payment or commencing work for residential building projects valued at $20,000 or more.
In most cases, the insurance policy must cover the construction period and six years from the practical completion date.
The scheme changes will take effect as soon as possible.
For more information about Home indemnity insurance, click here.
New chapter set for Yagan Square’s Market Hall
This week the State Government announced a revitalisation of Yagan Square with hospitality operator Nokturnl Pty Ltd signing a long-term lease for the central site.
Nokturnl was selected as the preferred proponent through a competitive process following a proposal that aims to deliver a vibrant new destination at Yagan Square’s Market Hall.
The reconfigured Market Hall will follow the successful approach adopted at Nokturnl’s other venues and will feature venues suitable to all age groups.
The State Government also released details for the future of the Market Hall at Yagan Square, with the release of concept designs for the proposed new multi-function hospitality and event space.
The proposed concept is aimed at breathing new life into Yagan Square by joining the new additions and refurbishments into the existing location, as well as improving the adjoining family-friendly playground and grassed area.
As part of the revitalisation strategy at Yagan Square, an exciting program of activations and events is set to take place over the coming months, including school holiday activities.
The program has been developed in collaboration with key partners including TourismWA, the City of Perth, Perth Theatre Trust, and the Department of Local Government, Sport and Cultural Industries.
For further information, visit here.
The need to revitalise the Perth CBD and Yagan Square in particular was one of the features of our Developing Destination WA One Day Summit in June. The first session focused on Bringing the City of Lights to Life with Matt Ryan from DevelopmentWA and Dale Page from the City of Perth. To read about this session and the Summit in detail, click here.
WA unemployment marginally up
The latest figures from the Australian Bureau of Statistics reveal the National Unemployment rate has remained steady at 3.5% in September, however the WA unemployment rate rose 0.3% to sit at 3.4%.
The increase sees WA drop to the second lowest rate of all the States with NSW recording a -0.1% drop to 3.3%. Despite the increase, WA’s participation rate is highest of all the States at 69.2% and the Employment to Population ratio is also highest among the States in WA at 66.8%.
The underemployment rate, the figure that denotes whether people have the capacity to take on more work remained relatively stable with last months figures with just a 0.1% increase to the National and WA figures to sit at 6% and 6.1% respectively.
Home in WA at Gallery Estate
The latest episode of Home in WA, which included the UDIA WA segment about Gallery Estate by Satterley Property Group, went to air on Sunday.
Gallery by Satterley Property Group in Willagee is a great example of how the development industry is meeting the needs of a range of new home buyers and making a positive contribution to the existing community.
Gallery is a unique micro-community nestled into the area, that offers a mix of nature, history, architecture, public art, and green open spaces within easy reach of existing amenities such as schools, shops and transport options.
View the latest episode here or head to our YouTube channel here to view all of our Home in WA segments.
UDIA WA is a proud partner of Home in WA. For more information about Home in WA or to feature your company in an episode, click here.
Join us for an evening to remember!
Don’t miss an opportunity to hear West Australian singer songwriter Helen Shanahan at the UDIA WA End of Year Sundowner on 24 November.
Helen has supported the likes of Missy Higgins, Claire Bowditch and Tim Minchin and is an accomplished recording artist with several awards to her name including WAM’s song of the year in 2018.
Click here to register for the event and go into the draw to win a $250 Crown voucher.
Big thanks to our End of Year Sundowner Sponsors MNG., Douglas Partners, Effective Property Solutions and Underground Power Development.
Perth and Peel Waterwise future
To mark the start of National Water Week, Water Minister Dave Kelly today launched Kep Katitjin – Gabi Kaadadjan, the second Waterwise Perth Action Plan for Perth and Peel which builds on the first plan released in 2019.
Kep Katitjin and Gabi Kaadadjan are the Whadjuk and Bindjareb Noongar terms for ‘water knowledge’.
The 41 actions set out in the new plan aim to provide a framework to help to conserve water resources, as well as support biodiversity and urban greening and cooling.
The new plan includes reductions to groundwater use in the Perth-Peel region which aims to save 70GL of groundwater per year by 2029.
The plan includes actions to achieve the following by 2030:
- 10,000 State Government-owned social housing properties State-wide retrofitted with water-efficient fixtures;
- 10% less groundwater used across the Perth-Peel region;
- 100% of government-led urban development projects in Perth and Peel to be waterwise;
- 100 restoration projects to improve water quality and health of Swan/Canning Riverpark tributaries and catchment; and
- Over 40% increase in the use of recycled water.
Increased engagement with the Noongar people, Whadjuk and Bindjareb Traditional Owners, will also be a priority for this new plan.
One of the initiatives announced under the plan is for a new $4 million support program for local governments located in the Gnangara Groundwater Allocation Plan (GGAP) area who will need to reduce their groundwater use by 10% from 2028.
The Local Government Support Program is a joint initiative of the Department of Water and Environmental Regulation and Water Corporation, and will provide funding over four years.
The GGAP was launched in June 2022 and aims to rebalance Perth’s groundwater systems north of the Swan River which have been depleted as a result of climate change and increased groundwater use.
The new program will support local government projects that improve water efficiency and urban cooling in the suburb, through initiatives such as redesigning public open spaces, using water sensitive urban design, planting tree canopy for shading, hydro-zoning and undertaking water audits.
The program will provide funding to the nine local governments most affected by urban heat island effects in the Gnangara groundwater allocation area. These local governments include:
- City of Bayswater;
- City of Joondalup;
- City of Perth;
- City of Stirling;
- City of Swan;
- City of Vincent;
- City of Wanneroo;
- Town of Bassendean; and
- Town of Cambridge.
National Congress opportunities
UDIA National Congress returns to Perth in 2023 and there are opportunities for UDIA members to get involved with the national celebrations.
Set to be held from March 27-29 at Crown Perth, it is the key networking event of the year as delegates from all over the country come together to learn, engage and interact with the compelling content on offer.
There are a variety of sponsorship opportunities available, including sponsoring one of the categories at the UDIA National Awards for Excellence where the WA winners announced at the 2022 Awards for Excellence Gala Dinner will be flying the flag for WA.
To view all of the opportunities available, read the National Congress Partnership Prospectus here and reach out to National Sponsorship Manager Anthony Nicolaou at anicolaou@udiansw.com.au with any questions.
UDIA Online Access Code
UDIA WA are pleased to share a new Corporate Accommodation Rate Code for our members to receive 15% off accommodation with Crown Perth.
To access the discounted rates simply book via the Crown Hotels website and quote our Corporate Access code urband3357 in the promotional code field to receive your negotiated corporate rate.
Full instructions can be found here and for more information and T&Cs, click here.