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25 November 2021

Industry Issues 25-11-2021

From the CEO

This week our talented team of newly appointed Strategic Committee members have started meeting to determine the key priorities for UDIA WA to pursue in the year ahead under our policy pillars of Economy, Environment and Liveability. The three committees will be  guided by four key challenges set by Council being housing supply, building a collaborative regulatory culture, community education and attracting a skilled workforce and population to WA.

We have again been inundated with excellent nominees for the UDIA WA Advisory Groups that will feed into our Strategic Committees. UDIA received over 250 nominations from over 150 members, with the Advisory Group chairs and team busily working through applications. Keep an eye on your Inbox if you are one of the nominees as we will be confirming the successful applicants next week.

At a Federal level, the challenges we are facing at a State level are largely replicated as UDIA National revealed its 2022 National Policy Platform entitled ‘Resilience. Recovery. Reform’. Built around six key themes, the policy solutions proposed are intended to turbocharge Australia’s economy, boost home ownership and unlock our industry’s full productive potential. As we edge closer to a Federal Election in the first half of 2022, UDIA are well positioned to advocate for policy settings at both the Federal and State level to ensure the development industry continues to play a vital role in ensuring a sustainable economic environment in the years ahead.

I look forward to seeing many of our members and stakeholders at our final event for the year on Thursday at Nedlands Yacht Club as we celebrate and charge our glasses to a frantic and highly productive 2021.

Jonathan Pain to return in 2022

This week UDIA were proud to announce economic guru and truth teller Jonathan Pain will be returning to Perth for our first Industry Luncheon of 2022 to provide his economic foresights for the next 12 months and beyond.

Jonathan’s insights have proven eerily accurate in previous years and his knowledge and understanding of economic indicators provides unparalleled insights for industry as to what to expect as we move into the next phase of easing border restrictions.

In February 2019 he predicted the significant fall in interest rates before in early 2020 he foretold the unprecedented impact of COVID-19 around the world.  What will it be in 2022?

If you want to be prepared for what comes next and the economic environment that the property industry will be operating in over the coming years, this is a not to be missed event!

For more information and to register, click here.

Big thanks to our Industry Partner Harvey Norman Commercial Division, Technology Partner nbn™ Australia, Event Sponsor Mirvac and our Networking Partner JDSi Consulting Engineers for supporting this event!

UDIA National release 2022 Policy Platform

On Monday, UDIA National released its 2022 National Policy platform which clearly positions housing and construction as central to Australia’s prosperity, as we recover from the economic effects of COVID-19.

Built around six key themes, the platform entitled ‘Resilience. Recovery. Reform’ maps the policy solutions needed to turbocharge Australia’s economy, boost home ownership and unlock the industry’s full productive potential.

The policy platform will, in turn, inform UDIA National’s strategic approach to the Federal Election due in the first half of 2022, with UDIA National well underway in developing a detailed campaign strategy.

Across each of UDIA National’s policy priority areas, the document outlines the scope of the current challenge, as well as clear policy recommendations. The policy agenda seeks to:

  1. Turbocharge housing supply and choice to meet the demands for home ownership and access to housing across the spectrum;
  2. Ensure our cities and regions are fit-for-purpose and positioned to accommodate future growth by delivering durable strategic planning and infrastructure delivery;
  3. Streamline environmental approvals to produce a better balance of environmental, social and economic outcomes;
  4. Overhaul the biggest barrier to housing affordability by making planning systems work
  5. Begin the task of post-pandemic population planning to consolidate our economic recovery;
  6. Keep home ownership in reach with smart lending practices and incentives that blend home ownership with housing supply.

The platform also provides detailed analysis of the state of housing markets, as well as measuring the economic contribution housing and construction make to the economy.

A copy of the document can be downloaded in full, here.

Urbis Essentials

The Perth new apartment market recorded solid sales activity in the September Quarter, 2021 based on the latest figures from UDIA WA’s research partner Urbis.

The Urbis Apartment Market Essentials survey recorded 314 sales in the September Quarter which was lower than activity seen over the last 12 months. However, this level of activity was still higher than any quarter in 2019 and the first half of 2020.

Lower sales activity in Q3 corresponded with only three new projects being launched, compared to four new projects in the June quarter, according to the Urbis survey.

Further insights from Urbis suggest developers are gearing up for new project launches over the summer period with a total of 16 projects and over 1,300 new apartments that could be launched in Q4 2021 and Q1 2022.

Urbis Director, David Cresp said the really big issue for developers at the moment the rapidly increase in costs.

“Over the last 12 months developers are telling us that costs to build an apartment building have increased by 15-20%,” he said.

“This is a big concern for developers as prices have certainly not increased this much over this period. Apartment prices for new projects being launched are going to have to increase and we are already seeing prices in projects that have launched start to be increased.”

For more information, click here to read the media release.

Montreal Commons turns sod

On Monday, UDIA WA CEO Tanya Steinbeck was in attendance for the turning of the sod of OP Properties new Montreal Commons development, which is set to be one of the first ever carbon neutral apartment buildings in Australia.

Powered only by sustainable energy, the five-storey building designed by Hillam Architects will consist of 39 apartments, a basement carpark, public gardens, rooftop terrace, play space and ground-floor café.

Montreal Commons will produce about 240 tonnes less of carbon emissions per year compared to a typical apartment building. This is equivalent to taking 50 cars off the road.

For more information, click here.

CoreLogic identifies disparity between wage and property price growth

New analysis from CoreLogic has identified a disparity in the level of wages growth compared to level of property price increases over the last 20 years.

Earlier this month the ABS posted a 2.2% annual increase in the Australian wage price index (WPI) taking the overall wage increase over the last two decades to 81.7%, however this is less half the 193.1% property prices have risen in that same time period.

This has been further exacerbated by the recent upswing in national housing values, which has seen Australian dwelling values rise 22.0% in the past 13 months.

Across the country the biggest disparity is found in Tasmania with a 79.6% wage increase facing a 294.0% property price increase. The smallest gap between the two figures is found in the Northern Territory where 81.7% faces 99.0%; WA features the next smallest gap with an 81.0% wage increase sitting alongside a 139.2% property price increase.

To read the analysis in full, click here.

Take advantage of UDIA’s Black Friday sale

UDIA WA are delighted to present our one time only Black Friday sale offering you 25% off any new or upgraded advertising in The Urbanist magazine before the end of the financial year but only if you book by 3pm Monday 29 November.

This fantastic value opportunity will get your brand noticed by the decision makers in the development industry and applies to any new or upgraded advertising in #4 2021*, #1 2022 and #2 2022.

With very limited spaces left, book in now to guarantee your spot alongside excellence.

For more information and to book your spot, email cthurmott@udiawa.com.au

To view the magazine, click here.

*Please note: artwork deadline for advertising in #4 2021 is COB Friday 26 November

Home in WA

Last Saturday two UDIA segments featured on Channel 7’s Home in WA as part of our media partnership.

The first story focused on Belmont Hub which recently won the Excellence in Social & Community Infrastructure category at the UDIA WA 2021 Awards for Excellence and is a fantastic example of a local community facility that has injected vibrancy into the local community. To view this story, click here.

In the second story we visit Burns Beach by PEET which picked up the Residential Development Award due to the luxury lifestyle on offer with great access to the coast, whilst also being brilliantly designed to preserve the natural environment as much as possible and complement the coastal location. To view this story click here.

To view all previous UDIA episodes click here.

UDIA WA’s media partnership with Home in WA provides an ideal opportunity to showcase the incredible work undertaken by our members and the development industry each and every day.

Thirty-two new timber-frame homes for social housing in Hilton

32 new timber frame homes for social housing have been designed ready for construction as part of the revitalisation of the Hilton suburb.

The 32 homes, which will be a mix of one and two-bedroom houses, will be spread across the suburb and help meet the demand for smaller homes in the area.

Fourteen of the new homes have been architecturally designed through a design competition while the other 18 have been designed through the Department of Communities’ Design and Construct Panel.

All homes have been designed to be comfortable and inclusive for people of all ages and abilities and to optimise natural ventilation and heating.

The homes are being constructed by different builders at different times with all 32 homes due to be completed by late 2022.

Additional 12,000 tonnes of local softwood timber a boost for WA building industry

Forestry Minister Dave Kelly today announced that the McGowan Government has made an additional 12,000 tonnes of structural pine available over the next three months for the Western Australian timber manufacturing industry and the State’s building and construction sector.

In the past, the WA softwood processing industry supplied approximately 65% of pine products to the State’s housing and construction market. The remaining demand has been met by timber imported from the Eastern States or overseas.

The McGowan Government, through the Forest Products Commission (FPC), has arranged for the supply of an additional 12,000 tonnes of WA grown softwood logs to be brought forward from future supply commitments to help meet the current increase in demand for timber in local construction.

Access to UDIA WA website changed

Access to the UDIA WA website recently changed as part of our aim to provide exceptional member services.

UDIA WA has invested in new technology that will integrate our member database with our website and online event registration capabilities with our new UDIA WA online Community Portal providing our members with seamless, integrated services and up to date information at the click of a button.

As part of the change all login details for the website were removed and each member organisation’s Key Representative was granted access initially and the Key Representative can now provide access to a further 2 representatives for their organisation.

All the necessary information was emailed to Key Representatives last week and can be accessed here for more information.

Once active the UDIA WA Community Portal includes exclusive member only access to:

  • Urban Express weekly news
  • The Urbanist quarterly magazine
  • The Urban Development Index quarterly market update
  • The Urban Intelligence economic data report
  • UDIA WA Members Directory listing details of all UDIA WA members
  • UDIA WA Diversity Toolkit
  • Relevant governance documents including the UDIA WA Annual Reports and Constitution
  • Ability to update you and your organisations details

For more information or any queries, email membership@udiawa.com.au