From the CEO
For first home buyers, prospects of getting a foot on the property ladder improved this week.
Pragmatic moves to exclude HECS debt from mortgage credit applications have been broadly welcomed as a leg up for those who have quite rightly invested in their own education and employability. It does not, however, mean that the debt magically disappears.
In WA more broadly, it seems mortgage stress has improved over the last 12 months according to cash cow CBA. WA’s share of ‘bad loans’ has halved over the past year from a 23% to 12% share of Australia’s risky loan pool with the lender. What a relief for the CBA given their posted $5.13 billion cash profit.
Predictions on interest rate movements are a little more complicated this week than they were a month ago. Full blown optimism for a rate cut is now fence sitting, with east coast real estate agents praying for a cut to breathe some life into sluggish market conditions.
In WA and Perth more specifically, demand has slowed somewhat however appears to be largely driven by affordability challenges and lack of housing choice. Which comes back to supply. UDIA WA remains laser focused on ensuring we prioritise policy measures that support the delivery of more homes, faster. Our army of committee volunteers returned to work this week to make sure we are putting our eggs in the right baskets.
In the anticipated release of UDIA WA’s latest Urban Development Index in coming days, I expect to see a return of the first home buyer as a proportion of land sales with a continued decline in investor sales. Any moves by the major lenders to assist assessing serviceability, combined with Keystart price cap changes late last year and a potential rate cut on the horizon, could mean demand remains strong for some time.
Whilst caretaker conventions limit major decisions until post 8 March in WA, it does not mean BAU stops. We are preparing our incoming Minister briefs for whomever takes the reigns (or keeps them) in key development related portfolios. Our agenda for the incoming government remains the same – help us deliver more homes, faster – and your job will be made a whole lot easier.
Tanya Steinbeck
UDIA WA Chief Executive Officer
UDIA WA policy team update
The first operational committee meetings of the year kicked off this week. It was great to welcome everyone back into our renovated office for the first time for some productive discussions and set the tone for the rest of the year. The key policy items up for discussion included:
Environment and Climate Action
- Creating a more strategic approach to offsets and our work with the relevant stakeholders to make it a reality.
- The current honeymyrtle conservation advice from DCCEEW that is presenting challenges with development and basic raw material supplies in the parts of Perth.
- Discussion around the changes that have been made in response to the Vogel-McFerran Review and the need to now observe these changes in action and how further improvements can be made.
Masterplanned Communities
- The potential of modular construction in unique sites that aren’t ready to be realised at their full potential.
- Matters relating to structure plan extensions and the associated administration of this.
- Documenting the cost to deliver an average development in Perth and the best way to do this.
Infill Developments and Precincts
- Received a briefing from Simon Blackwell of HIP V. HYPE on the incoming NCC 2022 changes and what has been seen around other parts of Australia.
- Discussed methods to create more consumer confidence and awareness in infill products.
- Discussed infill precincts and the identification of infrastructure required to fully realise a precincts potential.
Infrastructure
- Held a discussion with City of Wanneroo representatives to work through the issues currently faced by industry and local government in the delivery of housing supply.
- Discussed the Telecommunications in New Developments Policy that UDIA has been in communication with the Australian Mobile Telecommunications Association around.
- Received briefings from the infrastructure agencies on the latest information for industry.
Community conversations
UDIA WA’s Community & Consumer Conversations Committee met for the first time this year on Monday. The focus of the committee overall is to improve industry reputation, community engagement and understanding of growth and development in WA. To further those aims, the committee is assisting UDIA to develop a video series for our social media channels that features interviews with residents from different housing typologies (i.e. apartments, townhouses, masterplanned communities etc) to find out what attracted them to their current home, and what they like about the lifestyle. The series will kick off with a segment on apartment living, with several residents from Elysian apartments interviewed already.
The committee is also continuing to develop content for the ‘community’ section of the UDIA WA website, which we are aiming to become a ‘one stop shop’ for consumer and community information about residential development and purchasing. You can visit our website to see what content is already available here.
With these projects well underway, the committee will look to engage with key stakeholders including government agencies, to discuss our work and explore potential partnerships or collaboration opportunities to continue to effectively engage with local communities about the challenges and opportunities related to urban growth.
We look forward to sharing the ongoing work of this committee over the coming months.
Mood of the nation
Cost of living, housing and health remain the hot button issues for Australians according to SEC Newgate’s latest Mood of the Nation report.
While these issues remain critical, overall optimism in WA is higher than any other state, with 58% of respondents believing WA is heading in the right direction, which is the highest in Australia. This confidence can be tied to economic strength and widely held hopes that interest rates will drop in the coming months.
Perceived Federal Government performance remains stable over the last three waves with 32% rating it “good” or better and 28% rating it “fair”. Victoria continues to have the lowest rated performance of any state while the WA Government has edged up since September with 53% rating government performance good or very good.
Cost of living, health and hospitals, housing and crime are the most important vote-defining issues for West Australians in the upcoming state election. A majority of WA voters believe that public transport is improving, and WA residents are still relatively positive about the state economy and job opportunities.
Overall, around four in ten Australians (41%) are experiencing financial difficulties and this remains stable across recent waves. Renters, women and those aged 35-49 are amongst the groups more likely to be experiencing financial difficulty. Renters are significantly more likely to be experiencing financial difficulty (55%).
You can read the full Mood of the Nation Report here.
Designing and delivering African Cities
Steven Jennings, Founder of Rendeavour, along with well known urban planner Dean Landy, are visiting Perth this month for a free, thought leadership event highlighting their innovative approach to designing and delivering African Cities.
Africa is experiencing an unparalleled urban and demographic transformation, with its population projected to double by 2050. In this talk series, Stephen Jennings, the New Zealand founder of Rendeavour, Africa’s new city builder, along with Dean Landy, Australian architect and urban designer, share their vision, experience, and strategies for shaping Africa’s new urban future.
Over the last 15 years, Rendeavour has helped generate an estimated 50,000 jobs and invested billions of dollars across the continent. The discussion will explore insights, challenges, and opportunities involved in building sustainable, liveable, and vibrant cities from the ground up in Kenya, Ghana, Nigeria, and Democratic Republic of Congo.
UDIA WA members are invited to attend what is sure to be a though provoking and engaging evening.
Register to attend here. The event is taking place at 5.30pm 24 February 2025 at Herbert Smith Freehills.
Emerging Leaders Program September 2024 Cohort meet up
On Friday, the first mentoring cohort of UDIA WA’s 2024 Emerging Leaders Program gathered to reflect on their progress and share their experiences from the program to date.
The session provided an opportunity for participants to discuss the insights gained, the challenges faced, and the overall value they have derived from their mentoring journey.
Each participant shared their individual mentoring experiences, offering valuable perspectives on the development of their relationships with their mentors. The cohort appreciated the UDIA team for their excellent job in matching mentees with mentors.
Both insightful and inspirational, the cohort agreed that tools such as the 360-degree feedback and DISC assessment have proven to be instrumental, providing a comprehensive view of their development needs and opportunities. The one-day leadership course set a solid foundation that focused on both management and leadership which was naturally complemented by the mentoring process.
The participants have found the program is a rewarding experience that has helped them refocus their efforts, making significant progress toward their development goals and in identifying their authentic leadership style. Many participants noted that the program encouraged them to challenge their thought processes and decision making.
Additionally, the program has allowed participants to connect with peers, providing exposure to diverse perspectives, thus broadening their understanding of leadership.
In addition to the valuable mentoring discussions, the cohort enjoyed a productive networking session, which included drinks and further strengthened the bonds within the group.
Looking ahead, participants are eager to attend the upcoming Industry Lunch on 14th March. They have also scheduled individual appointments with UDIA WA CEO Tanya Steinbeck as part of their personalized development plans, a key offering within the mentoring program. The cohort will reconvene on 26th March 2025 for their final reflection session, which will mark the culmination of this enriching mentoring experience.
The mid-mentoring meet-up served as a valuable moment of reflection and connection, leaving participants motivated and eager to continue their leadership journeys.
If you are interested in being part of the 2025 Emerging Leaders cohort, visit here for more information and to register.
UDIA National Congress 2025 – Session Spotlight
UDIA National Congress is fast approaching! As part of the program, delegates will hear from a broad range of industry experts and commentators from across the globe.
As part of a session that will explore groundbreaking international projects transforming the built environment, Gordon Adams will showcase The Batersea Project.
The Battersea Power Station once provided a fifth of London’s electricity, and it is now a vibrant destination for living, dining, and entertainment.
Learn how visionary planning revived this iconic landmark and shaped the future of urban renewal at the UDIA National Congress from 17 – 19 March 2025. Find out more here.