ADDITIONAL FUNDING WELCOMED BUT EXTRA TIME STILL NEEDED
The Urban Development Institute of Australia (UDIA WA) welcomes an additional $30 million boost to the Building Bonus program as announced by the State Government, however there is still the need for an extension to the delivery timeframes to ensure quality and safety aren’t compromised in delivering the final product.
Earlier today the McGowan Government established a new COVID-19 Industry Support Fund as part of its continued efforts to stimulate the State’s economy. The first initiative within this new fund will be to provide the additional funding to cover the higher than anticipated demand for the Building Bonus program that led to record land sales in the June quarter.
“UDIA welcomes this new funding as it will enable more people the opportunity to build a new house in our great State, however the higher demand reinforces the need for an extension to the delivery timeframes to allow industry to safely provide the quality products it is renowned for,” UDIA WA CEO Tanya Steinbeck said.
“Since the announcement of the State and Federal housing stimulus measures we have seen record land sales, which were preceded by a sustained period of low market activity meaning land developers are having to deliver titled land to the market at record speed to meet the deadline set by the grants,” Ms Steinbeck said.
“Whilst the heightened activity is a fantastic outcome for jobs & the economy, an increase to the delivery timeframes will allow industry to continue to deliver high quality product in a safe and sustainable fashion in time for the consumer to benefit,” Ms Steinbeck said.
“Last week, UDIA called for an extension of the timeframe required for the full building contract process to be finalized and we are repeating that call today. We would like to see an extension for the full building process to be finalized. This includes title issue, valuations and formal finance approval by 30 June 2021, with building commencement within a further six months” Ms Steinbeck said.
In short, the new timeframes would look like this:
- Step 1: Signed land contract and signed preliminary contract to build with an approved lot plan by 31 December 2020.
- Step 2: Comprehensive building contract finalised including titles and formal finance approval by June 30 2021.
- Step 3: Commencement of building (significant earthworks) within six months of title
“UDIA would like to take the opportunity to once again thank the State Government for their investment in our industry to date but we are just asking for a little more time to ensure industry can produce the quality product that consumers deserve without putting employees at risk in the rush to deliver.” Ms Steinbeck said.
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