From the CEO
Could be better, could be worse.
That’s the response I used to get every time I asked my grandmother-in-law how she was. It’s quite an apt response to many issues at the moment both industry related and on a personal level.
Yesterday we released our latest quarterly Urban Development Index, which shows that average land prices have reached above $300,000, the highest average price recorded by the UDI since the December quarter 2007, when the average price hit $317,000 at the peak of that boom. Depending on which side of the fence you sit, either the developer or the purchaser, it’s good news for project feasibilities and profit however it’s a trajectory for new home buyers that is not necessarily positive as we get closer to hitting an affordability ceiling.
We also saw yesterday the introduction of the Metropolitan Region Scheme Bill 2024 to Parliament. The biggest change under the proposed legislation, is that most development on zoned land will be exempt from requiring approval under the MRS, except where explicitly stated by the WA Planning Commission. Another welcome step in the planning reform agenda and whilst our planning system here isn’t perfect, it could indeed be a lot worse as we see in other States of Australia.
Perspective matters, as I’ve been reminded of in the last few weeks. I’m saddened to share that two weeks ago today my husband Daniel was diagnosed with Stage 4 Hodgkins Lymphoma. After being a bit wheezy and tired, what we thought was a blood clot turned out to be a 15cm malignant mass in his chest that has spread to his lymph nodes and rib joints. Not the news we expected for an otherwise fighting fit 47-year-old.
So our cancer battle begins with six months of intense chemotherapy after which we are aiming for a complete cure. From being at the forefront of family domestic violence policy for WA Police to the couch has been quite the transition for Daniel, however he is most grateful that the Olympics are on and he gets out of mowing the lawn.
I share this with you, our valued members because I love my job and you have all been my support in a professional sense for almost six years. I now need to reduce my work days to 3 days per week for the next six months so I can be Daniel’s biggest advocate in my most important role, his wife.
On the days I’m not in, the highly capable Sarah Macaulay, our Executive Director of Strategy Policy will be acting in my role, supported by the best team and Council I could have asked for. I can assure you that your interests remain in the very best of hands.
Our family, including our two children have been blown away by the unconditional love and support we have received over the last couple of weeks. It means the world to us to know that when we stumble there are many who will be there by our side to pick us up.
So now when I get asked how I am, I could be better but I could also be a lot worse. And in six months when we walk out of hospital and ring that bell, I’ll be on top of the world.
Tanya Steinbeck
UDIA WA Chief Executive Officer
Urban Development Index for the June Quarter
UDIA WA members received the latest edition of our Urban Development Index (UDI) on Wednesday, covering the performance of the WA greenfield residential land market for the June quarter 2024.
Key insights from this quarter include:
- 3,063 lots sold in the three months to June; 5.5% down on last quarter
- Average price of lots sold at $305,177; 25.2% up on June 2023 quarter
- 457 lots on the market; 28.1% down on the previous quarter
- 3,272 lots set to be constructed in the next 6 months; 21.9% up on the previous quarter
Download the full report here
Stakeholder engagement on UDIA WA’s Priorities
In the lead up to the release of UDIA WA’s 2025 State Election Platform at our industry lunch on Friday 16 August, the team has been busy continuing to actively engage with key stakeholders to discuss our policy and investment priorities.
This week, this has included a meeting with the Hon. Dr Brad Pettit MLC on Monday 6 August. This discussion focussed on the importance of facilitating housing supply right across the continuum, and UDIA WA’s priorities relating to supporting the viability of higher density infill development including through the expansion of the Infrastructure Development Fund, as well as unlocking supply in key growth areas through enabling infrastructure and regional planning for a more strategic and streamlined approach to environmental assessments and approvals.
Also on Monday, there was a meeting with Water Corporation to discuss UDIA WA’s water-related infrastructure priorities, as well as the need to ensure they have the required CAPEX budgets for essential capital works plans to avoid approval delays and enable residential land developments to proceed to release immediate supply.
Today, UDIA WA attended a WALGA meeting of the GAPP Council CEOs to discuss our priorities of relevance to housing supply in the growth areas, including enabling infrastructure requirements and the implications of local government policies on clearances and approvals for timely housing supply.
UDIA WA will officially launch our State Election Campaign next Friday, register to attend this event here.
Red Tape Reduction Welcomed by Industry
Yesterday, UDIA WA welcomed the introduction of the new Planning and Development (Metropolitan Region Scheme (MRS)) Bill 2024 to Parliament as another step toward streamlining Western Australia’s complex planning approvals process.
According to our recently released Urban Development Index for the June quarter, new land values have reached near record highs due to critical supply shortages. Therefore any move toward more streamlined processes is another welcome step toward getting more homes on the ground, faster.
The MRS defines the future use of land and provides the legal basis for planning in the Perth metropolitan region, dividing it into broad zones and reservations. Local government town planning schemes should then provide detailed plans for their part of the MRS.
The biggest change under the proposed legislation, is that most development on zoned land will be exempt from requiring approval under the MRS, except where explicitly stated by the WA Planning Commission.
To read our press release in full, click here.
For all the detailed information on the legislation visit here
UDIA broadens Professional Development opportunities
UDIA WA have been hard at work creating and updating our range of professional development courses available to our members and the broader development industry. In addition to routinely refreshing our regular courses – Built Form Development and our 6 Day Foundations of Property Development – we established a Professional Development Operational Committee this year to support, promote and develop continuous improvement opportunities and high professional standards within the industry. With guidance from our new committee and in thoroughly researching the needs of our members, UDIA WA has introduced a range of new Professional Development courses that are either available now for registration or will be available in the coming months.
New courses include our one-day Introduction to Medium Density Development that will run for a second time this September, along with the brand new Emerging Leaders Program that ties in a one day leadership course with six months of professional mentoring.
To find out more about all of the Professional Development opportunities that UDIA WA has on offer, that are all tailored specifically to the WA property industry, visit here
Homelessness Week 2024
This #HomelessnessWeek, UDIA WA is proud to announce that we have renewed our charitable partnership with Homes for Homes for the year ahead. The theme for Homelessness Week 2024 is ‘Homelessness Action Now’ and to that end, we are supporting Homes for Homes in their aim to raise funds for much needed social and affordable housing.
Homes for Homes has granted over $2M in funding to 22 projects around Australia, including in WA, and these projects will provide housing for over 300 people.
To help more people experience safe and secure housing, we encourage our developer members to consider partnering with Homes for Homes by registering their project/s with the initiative.
For more information on how you can partner with Homes for Homes and be part of the solution, visit the website here, or contact WA Partnerships Manager Adrian Talbot: atalbot@homesforhomes.org.au
New appointments to the Infrastructure WA Board
The WA Government has appointed Mr John Galvin and Ms Fiona Hick as new members to the Infrastructure WA (IWA) Board for the period of 6 August 2024 through to 31 December 2026. UDIA WA Women in Leadership alumni Ms Nicole Lockwood has also been reappointed as chairperson with Hon Jay Weatherill AO appointed as deputy chair.
Currently the chief bidding engineer and concessions officer for Clough, Mr John Galvin brings more than 35 years of experience to his role with a background in consulting, manufacturing, and construction. Similarly, Ms Fiona Hick brings her 25 years of experience in oil, gas, and mining to the board where she is currently a non-executive director of Evolution Mining.
The board oversees IWA which provides an advisory role to the State Government on medium-long term infrastructure matters, providing strategic policy direction. We look forward to continuing our positive working relationship with the Board moving forward.
For more information, read the full press release here.
URPS Expands into Perth
A new UDIA WA member and one of Australia’s fastest growing planning firms, URPS, has opened its doors in Perth providing a fresh enthusiasm and focus on delivering high quality commercially driven outcomes for the Western Australian development industry.
The office, in the heart of Subiaco, is headed by Director Justin Hansen, one of Western Australia’s most highly regarded urban planners. Mr Hansen has played a critical role in delivering some of the state’s most acclaimed Master Planned residential communities and industrial business parks.
According to URPS Managing Director Matthew King, the firm’s entry into the WA market was a natural response to significant local demand for quality and reliable consultant services and was part of the firm’s strategic national growth strategy.
“We have a proven track record over 21 years of supporting our clients to achieve successful project outcomes and, as such, we’ve seen demand for our work grow rapidly right across the country,” said Mr King.
“Perth has been on our radar for some time, but we wanted to ensure we were able to deliver the exceptional results that we are known for, with high quality people who are local experts.”
We welcome the local URPS team to the UDIA WA membership family.
Don’t miss CPD points next Friday!
Registrations close tomorrow (Friday 9 August) for UDIA WA’s upcoming Industry Luncheon featuring presentations and discussion on the draft National Urban Policy.
Attendees at this event will be eligible for 2 CPD points, so don’t miss this opportunity to learn from Federal representatives on the Urban Forum that was involved in drafting the new policy.
Registrations must be in by COB tomorrow here.
Australian Property Investor Property Sentiment Q2 2024
API have released their Property Sentiment report for the June quarter. The report highlights that while demand for Perth property over the last twelve months has seen local WA suburbs take out the top ten fastest rising markets across Australia for FY2023/24, buyer sentiment is beginning to shift back to the east coast as the preferred destination for investment prospects.
Other key insights include the significant impact that inflation is continuing to have on the market as interest rates remain high and cost of living concerns continue to eat into purchasing choices by prospective buyers. Both buyers and sellers are indicating that one more rate hike from the RBA will change their plans, with buyers averted by a potential 25 basis point rate hike climbing from 33.6% to 41.0%.
Download the full report here.