The Urban Development Institute of Australia (UDIA WA) has welcomed the State Government’s focus on housing in today’s budget, including funding allocated to the new Housing Approvals Unit within the Department of Water and Environmental Regulation.
“It is positive to see the Premier and Treasurer deliver on the housing related commitments that were announced throughout the recent State Election campaign,” UDIA WA CEO Tanya Steinbeck said.
“As many people continue to struggle to enter the housing market, or find an affordable rental, it remains paramount that the Government continue to ‘pull all those levers’ to get more homes on the ground, faster,” Ms Steinbeck said.
Welcome funding in today’s budget papers includes the $101 million Housing Enabling Infrastructure Fund investment; the $119 million to reduce transfer duty for first home buyers; and the $4 million to fund the Housing Approvals Unit in DWER.
Initiatives also include the $75 million Build to Rent Kickstarter Fund for no and low interest loans to support affordable build to rent developments.
The $4 million allocated over the forward estimates period to properly fund the Housing Approvals Unit within DWER that has been tasked with improving the timeliness of environmental and water approvals for significant greenfield and infill housing developments, is welcome.
“UDIA WA has continued to highlight that environmental constraints and complex environmental approvals processes are a significant roadblock to delivering new housing,” Ms Steinbeck said.
“This dedicated Unit is seeking to address some of those bottlenecks and it is very welcome news.”
“The State Government has continued to listen to industry and look at ways we can deliver more homes on the ground, faster,” Ms Steinbeck said.
While UDIA WA has welcomed the action taken to date, to boost much needed housing supply and try to keep a lid on affordability, there are concerns around the impact of the $38 billion infrastructure spend outlined in the budget papers.
“The construction sector has been under significant pressure in recent years and that pressure is likely to continue given the upcoming major infrastructure projects as well as housing commitments under the Housing Australia Future Fund,” Ms Steinbeck said.
“The State will need to take a close look at procurement and programming of government construction projects and the demand that will place on the already extremely tight construction workforce in WA,” Ms Steinbeck said.
There is also an ongoing need to focus on the viability of the medium and high density housing sector, to deliver more homes.
“The introduction of the new Keystart shared equity products aimed at town homes and apartments is very welcome,” Ms Steinbeck said.
“Keystart’s transition to a Government Trading Enterprise also opens up an opportunity for Keystart to fund new development projects to boost medium and high density housing supply,” Ms Steinbeck said.
Other measures that UDIA WA recommended in a comprehensive Pre Budget submission, that were not included in the budget papers today include the extension and expansion of the Infrastructure Development Fund to boost the viability of medium and higher density residential projects.
The Institute has also called for a major review of property related taxation, in particular Stamp Duty.
Read UDIA WA’s Pre Budget Submission
Read UDIA WA’s Growth Areas Infrastructure Requirements Report