THE PREMIER’S STATEMENT THAT THE BIGGEST PRESSURE POINT IS ON THOSE FAMILIES WHO ARE RENTING ACCOMMODATION OR YOUNG PEOPLE RENTING ACCOMMODATION FAILS TO ADDRESS THE BROADER ISSUE OF HOUSING AFFORDABILITY
“We have had dire predictions by one of Australia’s leading banks that Western Australia will have a shortfall of 90,000 homes by the middle of this decade,” said UDIA (WA) CEO Debra Goostrey
“For years the industry has been hampered by red and green tape which, when combined with high population growth, drove housing affordability over the cliff prior to the Global Financial Crisis.
“With the market recovering strongly we are still facing significant hurdles, not only in the approvals system but also the availability of civil contractors who have been lured away to work in the lucrative mining industry.
“Industry is fearful that we have not learnt from the past and we will face land shortages within the next twelve months as the land currently being developed is snapped up by buyers.”
The 2011 Census data showed that the number of people per household has risen in Western Australia for the first time in a century.
“We have been literally filling up the bedrooms to accommodate our growing population,” Ms Goostrey said.
Figures published this week show that the number of First Home Owner Grants (FHOG) paid in Western Australia increased 28 per cent to 17,171 in 2012.
“Low rental vacancy rates have created the impetus for first home buyers to move into the home ownership but we are still seeing the cost of renting escalating,” Ms Goostrey said.
“Strong rental demand has pushed median rents up 12.5 per cent in 2012 to $450 per week in Perth.
“Despite a significant number of Western Australians becoming home owners for the first time, demand for rental properties continued unabated as the state experienced record population increases.”
The latest ABS estimates put Western Australia’s population increase early last year at the same level as New South Wales’. WA’s population increased by 78,037 persons over the 12 months to June, the largest yearly increase since records began in 1981.
“The reality is that unless we construct more housing we are not addressing the problem and to do that we must address the unwieldy red and green tape and multilayered approvals system,” Ms Goostrey said.
“We applaud what the government has been doing with shared equity programs and Keystart loans but unless we address the fundamental issues in the development sector the rental situation will not magically improve.
“Sadly if the Premier thinks we are through the worst of the shortage then he may not be motivated to address the underlying supply issues.
“Addressing the rental market in isolation from the broader property development issues will be token at best.”