The Urban Development Institute of Australia WA (UDIA WA) has welcomed a record $4.7 billion investment to boost housing supply across the continuum in today’s State Budget, highlighting that construction sector capacity will be the key challenge to realising ambitious housing targets.
With $51 million to boost construction sector training and workforce capacity and $48 million towards two new Housing and Infrastructure Advanced Manufacturing Facilities, scaling up the workforce required to deliver housing across both public and private sector projects will take time and will continue to hamper efforts to get homes delivered in the short term.
“Today’s State Budget demonstrates WA’s unique financial position that facilitates record housing and infrastructure investment that other States simply cannot afford. This is a once in a generation opportunity to ensure Western Australians have an affordable, accessible place to call home, that is only held back by construction sector capacity to deliver it,” UDIA WA CEO Tanya Steinbeck said.
Addressing a key constraint to delivering more development ready land supply identified by UDIA, the State Budget includes a $522 million investment in power, sewer and water infrastructure that will unlock thousands of new homes in key growth areas of Perth.
The investment adds to over a $1 billion in developer contributions that funds community, road and headworks infrastructure to enable new supply.
First home buyers remain at the forefront of housing budget priorities, with $208 million in stamp duty relief announced to increase thresholds and the first home-owner grant cap provides a step up for around 6,000 first home buyers each year.
“With the average land price sitting at $425,000, increasing the stamp duty exemption threshold for vacant land to $450,000 for First Home Buyers could make the difference in getting into their own home,” Ms Steinbeck said.
“Importantly, the delinking of the stamp duty exemption from the First Home Owner Grant cap (now $800,000) means that these buyers can still get the exemption or concession even if they aren’t eligible for the grant,” Ms Steinbeck said.
Today’s announcements add to previously released commitments to support the private sector in delivering more medium and high-density projects in infill locations, through the Keystart Pre-Sale Finance Guarantee and Commercial Financing Facility.
“With the private sector delivering 95% of new housing supply, the State Government is supporting industry to deliver desperately needed housing choice in infill locations that are currently unfeasible due to record-high construction costs,” Ms Steinbeck said.
“With an Asset Investment Program of over $44 billion over the next four years in addition to meeting housing targets, workforce capacity needs to be front of mind for the Federal and State Government and the private sector if we are going to realise the benefits of the best set of books in the nation,” said Ms Steinbeck.
“Given the private sector contributes 86% of WA’s economic growth, all Western Australians will benefit from budget investment that leverages the expertise and efficiency of industry,” Ms Steinbeck said.
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UDIA WA CEO Tanya Steinbeck is available for interview or further comment.
Contact:
Gemma Osiejak
Executive Manager Communications & Engagement
P: 0421 506 819
E: gosiejak@udiawa.com.au