The Urban Development Institute of Australia (UDIA WA) has welcomed the Premier’s focus on housing supply in today’s WA State Budget given the housing supply crisis that is being experienced across the country.
The extension of the Off-the-Plan Transfer Duty Rebate for another two years and changing the incentive from a rebate to a concession is a direct response to UDIA WA advocacy and will provide certainty for both developers and buyers looking to purchase an apartment off-the-plan.
Combined with already announced land tax concessions for Build-To-Rent which are now supported by recent Federal Government taxation changes, future supply of rental accommodation is looking brighter although the short-term picture remains bleak for those in need of affordable rental accommodation.
“Investment in social housing remains a core focus of the McGowan Government and understandably so, as does using Keystart as a key lever for the provision of more affordable housing with low deposit finance and incentives to purchase in infill areas,” UDIA WA CEO Tanya Steinbeck said.
“The missing piece remains a systemic view of the provision of housing supply across the spectrum and the supports required to help people transition between housing types as their needs and life circumstances dictate,” Ms Steinbeck said.
While welcoming today’s budget measures, Ms Steinbeck warned that relying on the 27,500 dwellings under construction to fix Perth’s housing supply crisis is flawed.
“Given increasing migration to Perth and Western Australia combined with underlying local demand that is currently suppressed due to lack of consumer confidence in the housing construction sector, the assumption that the pipeline of housing currently under construction will free up enough rental stock is dangerous,” Ms Steinbeck said.
“There is a unique opportunity to leverage Federal Government funding under the Housing Australia Future Fund and other incentives for the State’s to provide more social & affordable housing supply. The private sector stands ready to work in partnership with all levels of government and the community housing sector to bring more affordable housing supply to more Western Australians,” said Ms Steinbeck.
“A dedicated focus on the provision of affordable and key worker accommodation and subsidised private rental initiatives are a missing piece of the puzzle at present and need urgent attention,” Ms Steinbeck said.
Perth’s relative affordability to other major cities around the country is a mantle that could easily be lost and sooner rather than later. Whilst house prices have remained relatively stable, extremely low levels of established housing stock for purchase and rent are already pushing median rents up with price pressure expected to increase in the established and new housing markets.
“All options must be on the table to reduce the cumulative impact and cost of regulation, taxation and overly complex lengthy approvals processes on the delivery of housing supply. All levels of government for decades have had their foot on the hose of housing supply, which is now down to a trickle. It’s time to work collaboratively to open up the pipeline,” Ms Steinbeck said.
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Contact:
Gemma Osiejak
Executive Manager Communications & Marketing
P: 0421 506 819
E: gosiejak@udiawa.com.au