From the CEO
“The Liberal’s plan to boost housing is just a $5bn gift to property developers”.
This is the headline of an article written by the Chief Economist for The Australia Institute in response to the announcement by Federal Opposition Leader Peter Dutton on the weekend. It’s an announcement that responds directly to advocacy by UDIA for greater front-end investment in lead infrastructure to help get more houses out of the ground, faster.
The alternative solution posed by the author of this article is for that investment to instead go directly to the public sector to build the houses themselves. Because that has worked so well in the past…
What is not often acknowledged and inconvenient in truth is that the private sector delivers more than 95% of housing in this country and will continue to do so. When appropriately supported by government investment in the necessary infrastructure (which is their job – funded by the taxpayer), the private sector is best placed to roll it out efficiently to accommodate our growing population.
Also inconveniently true is that the record investment in government infrastructure projects (outside the fundamental water, power, sewer piece) is draining the residential construction workforce – together with the mining sector. No point building a road or a train station if there are no homes at the other end.
Government priorities need a good sanity check. A 1.2 million housing target is ambitious and completely unachievable because we simply do not have the construction sector capacity to meet it. We don’t have the necessary infrastructure to facilitate it. And even if we did, the regulatory quagmire would make sure it wasn’t done quickly or cost efficiently.
We should never waste a crisis to achieve systemic change. There’s no point building a road to nowhere. Let’s start by collectively agreeing what is most important to deliver, by when and by who.
Houses don’t build themselves, no matter who is behind the wheel.
Tanya Steinbeck
UDIA WA Chief Executive Officer
UDIA WA AGM & Council update
On Wednesday 23 October, we held our Annual General Meeting (AGM) followed by our first meeting of the refreshed UDIA WA Council. Each year, the AGM is an opportunity for the Institute to report to our valued members on the health of the organisation, our ongoing advocacy and policy efforts, and to commission the Council for the coming year.
At the meeting, the 2024-25 UDIA WA Council was declared, welcoming two new members in Ryan Hunter and Andrew Wallis. Our complete Council members include:
- President: Richard Pappas from Celsius Property
- Vice President: Greg Rowe from Rowe Group
- Vice President: Grant Shepherd from Hesperia
- Treasurer: Adam Shephard from Okeland Communities
- Jane Bennet from CLE Town Planning & Design
- Nathan Butson from Cossill & Webley Pty Ltd
- Ryan Hunter from Parcel Property
- Lyle Kenny from Perron Group
- Glen McLeod from McLeod Fisher & Hamdorf
- Justine Roberts from Kingston Development Group
- Craig Shepherd from Scyne Advisory
- Andrew Wallis from Stockland
- Karl White from Cedar Woods
- Observer: Tiffany Allen from Construction Training Fund
Immediate Past President Col Dutton (Stockland) was invited to remain an Ex officio member of the UDIA WA Council for the remainder of his term as UDIA National President.
We thank departing Council members, Danielle Davison (Davison Advisory), and Paul Morgan (Peet Limited) for all their time, effort, and expertise that they’ve exercised while serving on the UDIA WA Council.
Thank you to Okeland Communities for hosting our AGM.
To find out more about UDIA WA’s activities in the last financial year, on behalf of our membership, please Read the UDIA WA 2023-2024 Annual Report.
UDIA Welcomes Federal Focus on Housing Enabling Infrastructure
UDIA National has welcomed the Coalition’s announcement this week in relation to their proposed Housing Infrastructure Program. Speaking in Perth over the weekend, Peter Dutton unveiled the $5 billon fund targeted at enabling infrastructure to unlock more homes for Australians.
UDIA National’s own data shows that the immediate investment needed for infrastructure nationwide runs at some $16 billion dollars and is critical to unlocking large tracks of housing across Australia.
Recent UDIA National analysis estimates that current enabling infrastructure funding is short by $10,000 per dwelling across Australia. On that basis, UDIA has estimated that for every $1bn allocated from the fund, as many as 100,000 homes could be unlocked, significantly bolstering housing supply.
In attendance at the Press Conference, UDIA National President Col Dutton noted that “This is smart policy that goes right to the heart of addressing the housing crisis and ensuring there are poles, pipes, wires and roads so houses can actually be built.”
In addition, UDIA has strongly encouraged that a portion of any money provisioned for enabling infrastructure be allocated to facilitate funding of Works In Kind (WIK) agreements from developers. These are infrastructure works delivered by developers where the value of that work offsets the developers’ existing obligations to pay developer charges to the state, when their development is completed.
At the Press Conference, UDIA National also welcomed the freezing the National Construction Code, as a strategy to coordinate further changes with industry and help industry catch up with the current changes.
Peek inside the program for National Congress
More details of the UDIA National Congress program have been revealed!
State of the Land Presentation and Panel Discussion
Hear from our National President at the launch of UDIA’s annual State of Land report, an annual deep dive into the nation’s residential market. Join Col Dutton, along with land supply guru Colin Keane and market master, Eliza Owen as they unpack the current state of play in housing and likely implications for the year ahead.
Arresting our Skills and Productivity Decline
During a housing crisis gripping the nation, efficient delivery of much needed accommodation is being hamstrung by a skills shortage. At Congress we will hear from Brett Schimming, CEO of BuildSkills Australia, as he shares insights and data on the reality of the situation of the skills shortage, and Buildskills’ outlook on when we are like to see improvement for the industry.
Brett will be joined by industry leaders, Danielle Wood, Cameron Leggatt and Vanessa Riley, who will provide their perspective on the impact of the current challenges in the residential property market and the critical steps that must be taken now to safeguard the construction industry’s ability to deliver.
Check out the program and speakers, and register your seat today!
For more information, contact Nichola Byrne: nbyrhe@udia.com.au
State Government unveils new construction initiative
The State Government has released a new policy updating procurement practices to attract increased investment in State infrastructure projects. The new policy aims to increase market capacity and competition to deliver infrastructure across the state.
The Bid Contribution Policy for Non-Residential Major Projects has been developed in consultation with MBA and top Tier 1 and 2 contractors.
The focus is on high value and high-risk non-residential projects under Department of Finance-led contracts, including for critical infrastructure such as hospitals, correctional facilities, schools, stadiums and museums.
Acknowledging the considerable investment from builders, Minister for Finance Sue Ellery said, “We understand that high-quality bids on major projects require considerable investment from bidders. The intent of this policy is to partially offset expenses borne by proponents to ensure the bids are developed at a high level, further supporting industry and reducing risk to the State.”
Eligible contractors can apply for a financial contribution up to $750,000 towards the cost of bidding for a state infrastructure contract.
UDIA WA is working to understand any potential flow on implications for the residential construction sector.
More information here.
New Waterwise Plan for WA
The State Government has released a new Waterwise Action Plan entitled Kep Katitjin – Gabi Kaadadjan. This is the third waterwise action plan for WA and introduces eight new initiatives and includes 35 ongoing actions, expanding beyond the Perth and Peel region.
Kep Katitjin – Gabi Kaadadjan Waterwise Action Plan 3 complements State Government initiatives to support urban greening, and under the new plan, the Department of Water and Environmental
Regulation will investigate the expansion of the Waterwise Program to priority regional urban centres, recognising the unique water challenges and opportunities these communities face.
Kep Katitjin and Gabi Kaadadjan are the Whadjuk and Bindjareb Noongar terms for ‘water knowledge’.
According to the State Government, the role of water sensitive urban design and waterwise approaches to mitigate urban heat, optimise infiltration to groundwater and manage stormwater are becoming more vital to how we respond to and adapt our urban spaces.
To read the new Strategy, visit here.
Environmental Protection Act Amendments Receive Assent
On Tuesday, the Environmental Protection Amendment Bill 2024 received Royal Assent, amending the Environmental Protection Act 1986. The intent of this legislative change is to speed up approval timeframes for development by allowing the various Government regulatory authorities to issue approvals in advance of the Environmental Protection Authority (EPA) along with several other changes intended to increase speed and efficiency in the approvals process.
These Amendments were developed from recommendations of the Vogel-McFerran Review which strives to balance environmental protection with facilitating development, including for much needed housing supply.
While this legislation is a positive step in the right direction, there is still work to be done to enable parallel approvals for planning schemes and scheme amendments (for example to enable rezoning of land for the delivery of diverse housing supply). We do hope that these initial changes assist in encouraging a practice and culture that more broadly supports parallel processing and increased efficiencies, and we will continue to engage with the State Government around further changes for streamlined approvals as they relate to the Planning and Development Act.
UDIA WA has strongly and consistently called for a more strategic and planning-led approach to environmental decision-making, through regional planning and a strategic plan and fund for offsets and rehabilitation. These are key priorities in UDIA WA’s State Election campaign and will be essential in providing greater certainty for all around what areas can be developed and what and how other areas should be protected and rehabilitated.
Key changes
- Updated provision to enable parallel decision-making for proposals subject to a Part IV assessment as well as provisions to allow the EPA and a decision-making authority to exchange information related to a proposal.
- A “Statement of Expectations” will be issued to the EPA by the Minister. While it is not yet drafted, UDIA WA expects that, with our current housing crisis, the Statement will set out clear expectations around working collaboratively across government and with industry to facilitate much needed housing supply.
- The EPA will be able to expand from five members up to nine members with expectations of knowledge, skills, experience or qualifications in environmental science, natural resources and biodiversity management, waste management and pollution control, industry, commerce or economic development, public administration, governance, regulation or law and regional areas and issues. The maximum terms will be three years with reappointment possible.
- Appeals against EPA decisions to not assess referrals made under section 38G have been abolished. Appeals can still be made on the content and recommendations in the EPA’s report whilst proponents will be able to appeal the EPA’s report and conditions in a ministerial statement.
- Penalties for implementing a proposal under assessment have doubled:
- $125,000 for an individual and daily penalties of $25,000; and
- $250,000 for a body corporate and daily penalties of $50,000.
- The Minister will now be required to publish the reasons for a direction issued to the EPA on an assessment report on a proposal. The EPA will also be required to publish a summary of reasons for determining not to assess a proposal under Part IV.
Accelerating Smart Development
Yesterday, UDIA WA were pleased to participate in and contribute our expertise to the Accelerating Smarter Development Prospectus through a workshop facilitated by nbn, Urbis and Delos Delta.
The workshop drew inspiration from a range of representatives across the industry including developers, local governments, planners, consultants as well as industry associations as it looked at the potential advantages as well as barriers to the implementation of Smart Developments in Australia.
One of the key take-aways from the session was that while the implementation of Smart Development is generally seen to be a positive thing, there is a need for greater visibility and education on how best to do this, however in WA we have two of the most advanced projects in the country already adopting this approach with PEET’s Brabham Estate and Alkimos Central by DevelopmentWA being put up as trailblazers in this area.
The session was part of an extensive national engagement strategy that will see digital sessions taking place as well as in-person sessions in Melbourne, Canberra, Brisbane, Perth and Sydney.
We would like to thank nbn, Urbis and Delos Delta for leading this project and we look forward to further contributing to the creation of a Smarter Development Prospectus that will help developers, owners, and place-makers incorporate data, digital technology, and innovative practices into their projects.
Pick the brain of Award-Winning Project Directors!
Wednesday 30 October is your opportunity to join one of our site tours highlighting several of the winners from the 2024 UDIA WA Awards for Excellence. Each tour will be hosted by the project directors responsible for bringing the developments to life, providing you with the opportunity to understand how they overcame market challenges, effectively engaged with the community, or worked with stakeholders to bring the project to market.
Don’t get left behind! Registrations close tomorrow (Friday 25th October): Register your seat on the bus!
Take in the City skyline and mull over the Housing debate
With the 2025 State Election looming on the horizon, the continued housing crisis has been cemented as an election issue at the forefront of voter’s minds. Join us for the first formal debate between the Housing Minister and the shadow Minister at our industry luncheon on Friday 8 November.
Moderated by Nadio Mitsopoulos, the Hon. John Carey MLA will debate Deputy Leader of the Liberal Party the Hon. Steven Martin MLC on their relevant policy positions.
Following formal proceedings, mull over the results of the debate at the Rooftop bar HI-LINE. Take in scenic views of the review and city skyline as you decide, has the State Government done all it can to deliver the homes we need, or is the Liberal party better placed to navigate the housing crisis? Register for the debate and join us for drinks at the HI-LINE bar!