From the CEO
It’s on like Donkey Kong.
Writs have been issued, repetitive commercials have commenced. Protests at campaign launches have started. Take a deep breath and prepare yourselves for a blame game to end all blame games in the battle for majority government in WA for the next four years.
In a Shelter WA debate on Tuesday evening, the mud-slinging match between the Housing & Homelessness Minister and the Liberal Shadow, with occasional interruptions from the Greens and Nationals was a small taste of what is going to be a feisty campaign period. Not even Nadia Mitsopolous could keep them under control.
From a largely NFP audience, the clear focus areas were introducing no-fault evictions, implementing NCC Accessibility Standards and forcing developers to include minimum numbers of social & affordable housing stock in all future projects. Mostly on the basis that WA is the only State not committing to do so. Oh and Air BNBs are just as evil as the developers who knock down all the trees.
Credit to the Minister, he made no apologies for the decisions they have made to not place any further burden on the private sector who delivers 96% of housing supply.
Over the next four weeks, we will continue to monitor and respond to the commitments of all parties and make our case for the changes that will make the biggest impact to the development sector.
Putting the campaign noise aside, the market is showing small signs of improvement from a supply perspective. There are varying opinions about whether or not demand has dropped off or is simply idly waiting for news on interest rates and a more competitive market from a pricing perspective. We’ve had a great response to our first breakfast of the year with CoreLogic’s Tim Lawless, if you haven’t already I encourage you to grab one of the few seats remaining.
In response to the heightened challenges of project feasibility and risk, UDIA WA has launched a cracking two-day course run by industry experts to upskill anyone who wants a better understanding of how project feasibility, risk and finance works in practice. A wise investment for anyone in the sector that wants to better understand the drivers of project success, or failure.
In Donkey Kong, the aim of the game was to scale a construction site and rescue Pauline from the giant gorilla. I’ll leave it to your imagination who’s playing which character as we head towards March 8.
Tanya Steinbeck
UDIA WA Chief Executive Officer
Engagement with the Coordinator General
On Tuesday, UDIA WA CEO Tanya Steinbeck and Executive Director Sarah Macaulay met with Chris Clark (Coordinator General) and Kristian Dawson (Executive Director – Approvals Reform) from JSTI to better understand the role of the Coordinator General and to discuss potential opportunities to streamline environmental approvals and ensure a collaborative culture to facilitate housing supply.
Key discussion items included UDIA WA’s State Election Priorities relating to planning-led environmental decision-making and a strategic plan and fund for offsets, as well as further reforms to streamline approvals such as to extend parallel decision-making and approvals for planning.
It was a positive and constructive discussion, with good alignment in views on priorities for housing supply.
UDIA WA looks forward to continuing to engage with the Coordinator General and the activities of StreamlineWA as part of the Steering Committee.
State Election writs issued
Yesterday, the Premier Roger Cook advised the Governor of Western Australia to issue the writs for the State Election on Saturday 8 March. This launches the official election campaign phase and means the public sector is now in caretaker mode, which limits decision making capacity across government agencies.
Whilst the formal announcement was yesterday, we have seen the build up toward March 8 escalate since late last year, with housing supply one of the hot button issues at a State and Federal level. UDIA WA launched our own State Election Campaign in August 2024, outlining our priorities for the next State Government in working collaboratively with industry to deliver the homes we need, faster. Our campaign is formed around three key areas:
- Make it easier to create the homes we need
- Help keep the cost of homes down
- Plan for our housing needs, now and for our future
While we have seen several announcements from both sides of politics in relation to housing supply, we are keen to see what further action will be promised in the coming weeks to further alleviate the current crisis. UDIA WA will continue our advocacy on behalf of industry to ensure that housing remains a priority for any government moving forward.
You can read UDIA WA’s election campaign in full, here.
Nature Positive Legislation
Following much uncertainty, Anthony Albanese has declared that the Federal Government’s much-discussed Nature Positive legislation will not be proceeding during the current term of Government following doubt as to its passage through parliament.
Stage Two of the reforms comprised the introduction of three bills to Parliament. These bills sought to:
- establish the head of the Environment Information Australia (EIA) as a statutory officer within the Department of Climate Change, Energy, the Environment and Water;
- enshrine a statutory definition of ‘nature positive’ and require the EIA to take over and more frequently report on the state of Australia’s environment;
- establish a new independent Commonwealth statutory agency called Environment Protection Australia (EPA); and
- introduce stronger compliance and enforcement measures, including significantly increased penalties.
UDIA WA, through UDIA National, has been involved in ongoing consultation regarding the legislation but the process has been less than ideal and fraught with challenges. With much still left unknown, it has been difficult to understand the full implications and the net outcome that this legislation would deliver for the industry. Primarily, UDIA’s priority is for the development industry to have certainty as to its requirements in relation to the environment and for any implemented frameworks to facilitate positive outcomes for both the development of housing and the environment.
UDIA remains supportive of reform of the EPBC Act – it has been a drag on new housing projects for too long. It has undermined project viability due to inconsistent application, interpretation, and governance, which adds substantially to the time and cost of new projects. This has led to an eroding of confidence in the environmental process. However, the process of reform should follow the recommendations of the Samuels Review and be one in which all levels of Government and the private sector are collaborative in their approach to creating a framework that delivers better outcomes for future investment in both development and the environment. As proposed, there were significant issues that still needed to be addressed to ensure Stage 2 would meet these shared goals.
From a state perspective, UDIA WA has repeatedly called for the implementation of regional planning for Perth and Peel which considers matters of State and Federal significance. In collaboration with this planning, the development of a strategic plan and fund for offsets to better identify, implement and manage the restoration of degraded land is critical for ensuring the ability of the development industry to deliver timely and affordable housing supply while supporting improved environmental outcomes where they are needed.
UDIA will continue to engage with the Federal Government on the issue and the future of the EPBC Act reforms, as well as continuing advocacy to clear the decks of projects currently held up in the EPBC system.
New planning regulations cut red tape for community housing
The State Government has announced planning reforms that are aimed at boosting the delivery of affordable housing. The changes, which are set to take effect from 30 May 2025, have expanded the eligibility criteria for the significant development assessment pathway. The planning reforms are designed to allow apartment developments of any value, in targeted locations, that include a minimum of 5% social or affordable housing, to be eligible for the Significant Development Pathway.
Projects must be in inner-city medium to high density areas – including areas close to train stations or in regional centres. Once constructed the community housing will need to be managed by a registered community housing provider.
Planning and Housing Minister John Carey said, “these important reforms cut red tape for community housing providers and is another innovative solution to support the needs of vulnerable Western Australians with the aim of cutting red tape to deliver more housing at this critical time.”
Further information is being developed to support the new regulations.
Dwelling approvals rise in December
Monday saw the release of the Australian Bureau of Statistics (ABS) latest data revealing a 0.7% increase of dwellings approved in December after November’s 3.4% fall. December’s growth was driven by the 15.2% growth in private dwellings excluding houses, offsetting the 3% decrease of private sector houses.
Seeking great market analysis targeted to WA? UDIA WA members can expect the latest edition of UDIA WA’s Urban Development Index in the coming week, providing a comprehensive analysis of land sales activity in the state, as well as current property and economic conditions.
UDIA National Congress – Session Spotlight
In the midst of a housing crisis gripping the nation efficient delivery of much needed accommodation is being hamstrung by a skills shortage.
During the upcoming UDIA National Congress session focused on Arresting our Skills and Productivity Decline, 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 likely 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 on the residential property market and the critical steps that must be taken now to safeguard the construction industry’s ability to deliver.