From the CEO
Tall poppy or tone deaf?
The distraction around our Prime Minister’s choice of home purchase has tongues wagging this week, with some claiming it is ‘tall poppy syndrome’ and others saying it’s tone deaf amongst a housing and cost of living crisis.
Whatever your opinion, it’s the canary in the coal mine for any other political leaders thinking about upgrading their humble abode any time before the next election. Such is the sensitivity of the voting public around the cost of housing with no relief in sight despite billion-dollar commitments by both State and Federal Governments to increasing supply.
What happens though when you turn on the supply hose at full pelt, when there is a collective foot standing on it? It comes out in a trickle. The strength of that collective foot comes from ongoing lack of capacity in the construction sector, ongoing construction price escalation, lack of catalyst infrastructure, oodles of red and green tape and particularly stubborn inflation keeping interest rates firmly where they are. For now.
Quite the conundrum. We are hearing around the traps that demand is starting to come off here in Perth, albeit slowly. In the land market, it is highly likely that we have hit a ceiling in terms of pricing that many customers just cannot afford in the current environment. In established, our median house price is over $700,000 with a cyclical minor increase in supply but still painfully little choice. The rental vacancy rate is on the up at 1.6%, though still a long way from the typical 3%. Apartments are still borderline if not still unfeasible for many.
However. If and when that foot comes off, it could be like drinking from a fire hose. Whilst we don’t need a trickle, we will need to effectively manage the pressure this will put on industry and government resources when (if) it happens. We need to aim for a steady and sustainable pipeline to keep everyone’s heads above water well into the future.
Tanya Steinbeck
UDIA WA Chief Executive Officer
Bridging the Affordability Gap
Thank you to everyone who joined us this morning to explore the issue of Housing Affordability, and how to bridge the affordability gap with innovative housing models at our Industry Breakfast.
Affordable and timely delivery of housing is a critical issue, given WA is falling well short in terms of delivering the homes we need to meet current and future demand.
Our first speaker for the morning, Kath Snell, CEO of Shelter WA set the scene by clearly articulating the widening gap between social housing accessibility and the private market. As the economy grows, the private market continues to outpace the incomes of regular Australian’s that find themselves stranded, no longer qualifying for social housing, but unable to enter the private market. Shelter WA strongly advocates for income caps to be raised to better reflect the increasing medium house price in Perth, allowing more people to access the housing they need. Perhaps controversially for the private development industry, Kath also outlined Shelter WA’s position on Mandatory Inclusionary Zoning, which she says is essential to bridging the affordability gap and getting more social homes on the ground.
Outlining Stockland’s Halycon Communities, Stockland Project Director, Andrew Wallis, showcased the Land Lease model being employed, and how the model aims to provide more downsizing options for an aging population. By entering a land lease estate, downsizers can maximise the return of selling their existing home, enabling them to free up their equity into retirement. Additionally, by joining a land lease estate they can join a new community and utilize community facilities that benefit from community management.
For many Australians, maintaining an ongoing mortgage isn’t the barrier that keeps them from home ownership, but instead it’s the upfront ability to save for a deposit. Walking us through the various State and Federal Government schemes, Westbridge Management Fund’s Damian Collins explained some of the options available to low-income earners before evaluating private sector offerings. While increasing affordability through various financial aid models doesn’t solve supply issues, it can help Australians move into appropriately sized homes.
Formalities were closed with a robust panel discussion, as our speakers were joined by the General Manager of Summit Modular & Tiny Homes, Brad Bairstow. Taking questions from the floor, the panel explored how the various housing and land models such as land leasing and modular homes can augment the current housing market, by bringing more affordable homes to market and how they could work together with alternative private and government financing models.
Thank you to everyone who came to consider our Industry’s response to affordable housing, and thank you to our Industry partner DevelopmentWA and our Event Sponsors CLE Town Planning + Design & Modular by Summit for supporting this industry breakfast.
View photos from today’s breakfast.
Draft WA Planning Manual – Local Planning Policies
The Western Australian Planning Commission has released a draft document for consultation relating to local planning policies, the document intends to assist and provide information relating to preparing, reviewing and amending local planning policies and will form part of the WA Planning Manual.
Changes to the Planning and Development (Local Planning Schemes) Regulations 2015 will be required to implement some aspects including requirements for local planning policies be prepared in a standard manner and form and the adherence to a five-year lifespan.
Amendments to the Planning and Development Act 2005 will introduce revised processes for the review of planning instruments, the document will be revised to reflect any regulatory changes once the Regulations are finalised.
DPLH will be holding online information sessions, registration for these sessions via their website is essential.
Session Times
- Wednesday 30 October 2024, 10:00AM – 11:00AM (AWST) – Via Zoom
- Thursday 31 October 2024, 2:00PM – 3:00PM (AWST) – Via Zoom
Construction Employment Connect Expo
The Construction Employment Connect Expo is an event designed to help businesses fill workforce gaps by connecting with skilled migrants ready to contribute to Western Australia’s building and construction sector.
If your company has current job vacancies:
- Complete the Expression of Interest to participate at the Construction Employment Connect Expo – Employer EOI. Places are limited, the Construction Migration Office will contact you upon receipt of an EOI to advise participation suitability
- Sign up to promote your vacancies on the Skilled Migrant Employment Register
Event Details
Date: Monday, 4 November 2024
Time: 4.30pm to 7.00pm
Location: North Metropolitan TAFE – East Perth Campus, 140 Royal St, East Perth WA 6004
Why Attend?
- Reduce recruitment costs: Meet job-ready candidates face-to-face, eliminating traditional hiring expenses
- Access a talent pool: Skilled migrants have completed a job readiness workshop and have been screened by staff at the Construction Migration Office
- Fill your vacancies faster: Speed up your hiring process by connecting directly with motivated job seekers ready to start working in Perth
For any questions or additional information, contact the WA Construction Migration Office via email at jobconnect@dtwd.wa.gov.au or phone (08) 9224 6549 (Option 4)
City of Stirling draft Local Planning Scheme No. 4 Launch Event
Taking place Thursday 24 October, join City of Stirling City Planners for an informal expo-style information session to discuss the draft Local Planning Scheme No. 4 (LPS4). Held in the main reception hall of the City of Stirling Administration building this will be the first opportunity to hear from the City about the draft LPS4 before the advertising period closes Friday 24 January 2025.
The LPS4 will replace the existing Local Planning Scheme No. 3 to become the primary statutory document of the City’s planning framework. Based on the recommendations of the City of Stirling’s Local Planning Strategy and the requirements set out by the State Government’s statutory and strategic planning framework, the LPS4 sets out to reduce the complexity of the scheme and broader planning framework and improve consistency with the State planning framework.
Register your place at the launch by 18 October.
Alistair Jones appointed Director General at DWER
UDIA WA congratulates Alistair Jones on his appointment as Director General of the Department of Water and Environmental Regulation (DWER).
First joining DWER in January 2024 as Acting Director General, Alistair has previously served as Assistant Under Treasurer of the Economic Business Unit and Assistant Under Treasurer of Strategic Policy and Evaluation at the Department of Treasury.
Alistair brings with him over 15 years of Government experience in various roles and a dedication to protecting the Western Australian environment.
“I am confident the State will benefit from his attention to detail and dedication to protecting our environment and climate”, said Environment and Climate Action Minister, Reece Whitby.
We look forward to working with Alistair and DWER moving forward.
UDIA WA Educate
The Foundations of Property Development course commenced on October 7, 2024, led by highly experienced professionals who offer valuable insights into industry operations and stakeholder engagement. Participants are learning practical strategies for effectively managing the project life cycle, as well as understanding key principles related to commercial awareness, time management, quality, and cost control. Modules 1 and 2 were completed on 7th and 14th October, with the course resuming on October 21st from Module 3.
The four remaining modules:
- 21 Oct 2024 – Module Three: Positioning Your Development for Success presented by Ben De Marchi (Taylor Burrell Barnett), Karen Hyde (DPLH), Andrew Watt (Creating Communities Australia), Cath Holzheimer and Jade Fear (Satterley)
- 28 Oct 2024 – Module Four: The Development Under Construction presented by Avril Thomson (Cossill & Webley Consulting Engineers), Martyn Glover (City of Gosnells), Mark Busher (Water Corporation), Gordon Albert (Western Power) and Damian Shephard (Stockland)
- 4 Nov 2024 – Module Five: Project Management presented by Stuart Nahajski (DevelopmentWA), Chris Carman (Benchmark Projects Australasia), Peter Beekink and Tamica D’Uba (Lavan)
- 11 & 18 Nov 2024 – Module Six: Project Financing and Feasibility presented by Paul Kirk (RAC WA), Benjamin Hartley (NAB), Steven Claudio (Parcel Property), and Bruce Young (Spatial Property)
UDIA WA Emerging Leaders Program
The first cohort of the Program participated in an interactive ‘Meet and Greet’ session on 10th October, which officially kick-started Component 2 of the Program—Industry Mentoring and Applied Learning. The mentees received their program handbooks and reflected on and shared their learnings from the UDIA WA Effective People Leadership Fundamentals One Day Course, attended on 19 September. They engaged in an insightful session to better understand DiSC assessment, why it’s important and how it can be used, and explored their own profiles and traits to help inform their personal development planning. This get-together provided opportunities for self-reflection and deeper connections within the cohort, as well as for laying some foundations to maximise the value of the mentoring experience.
The mentor ‘Meet and Greet’ session was held on 15th October, providing the eight mentors with the handbook and an overview of the program to guide their mentees. Over the coming months, the mentees will engage with the mentor they’ve been matched with, and we look forward to supporting them as they continue their respective journeys throughout the Program.
The upcoming PD programs are:
- Online course – Sustainability and ESG Lunchtime Webinar Series: 19, 20, 27 and 28 Nov 2024
- 1 Day course – Introduction to Medium Density Development – 26 November 2024
Engagement with WALGA
On Monday, UDIA WA CEO and Executive Director met with the CEO and key representatives from WALGA to discuss opportunities to work collaboratively to facilitate housing supply. This followed on from member communications and work with UDIA WA’s Infrastructure Committee around potential opportunities to help respond to the current capacity challenges impacting local government authorities, particularly regarding planning and engineering approvals and clearances. UDIA WA will continue this positive engagement with WALGA and the GAPP Councils.
Elevate Your Property Development Game
National Congress gives you the exclusive opportunity to gain valuable knowledge from some of the world’s top property development experts. Joined by 13 talented and experienced industry leaders, with more to come, National President Col Dutton forms part of the list of speakers who will share their strategies and lessons for success in the industry equipping you with everything you need to elevate your property development game.
Packed into 3 days, UDIA National Congress 2025 provides maximum value by not only giving you the chance to hear from leading experts from around the globe, but also provides attendees the opportunity to grow their network by allowing you to connect with like-minded professionals.
Don’t miss your chance to enhance your knowledge, grow your connections and advance your career in property development.
Check out the program and speakers, and register your seat today!
State legislation clears way for East Perth Primary School
The Cook Government have passed legislation that repeals the Chevron-Hilton Hotel Agreement Act 1960 enabling the land previously reserved exclusively to be used as a carpark to be utilised as the future development site for the East Perth Primary School.
In addition to clearing the land to be used as a primary school, the new legislation has unlocked a parcel of the Queens Garden car park to be used as future housing. The remaining land is retained by the City of Perth.
“Our inner-city community is growing with more families choosing to live here, which is why we have committed to building a new inner-city primary school in East Perth”, said Housing Minister John Carey.
With the legislation clearing the way for development to begin, the State Government hope to have the East Perth school operating by the start of the 2029 school year and aims to ease enrollment pressure on the nearby Highgate Primary School.
Accelerating Smarter Development for Australia
UDIA WA is delighted to support and contribute our expertise to the Accelerating Smarter Development Prospectus, and we congratulate NBN Co and Urbis on this initiative.
We see this as a significant opportunity for property developers, owners, and occupiers alike, and an avenue for fostering smarter, future-ready developments for residents, visitors, and communities.
The Accelerating Smarter Development Prospectus will help developers, owners, and place-makers incorporate data, digital technology, and innovative practices into their projects. While developers widely recognise the value of smart technology, the rapid pace of technological advancement, evolving market offerings, and the need to align a wide range of stakeholders makes it challenging to realise the full potential of smart technologies.
Based on the experience of the project partners, industry and community engagement, and research, the Prospectus will gather best-practice lessons from around the world and apply them to the Australian context.
UDIA’s participation in the Project Reference Group will allow us to provide direct input into the development of the Prospectus. We will apply our expertise and experience to the project, representing the interests of our members, stakeholders, and the industry.
Critical to the success of this project is the extensive, nationwide engagement being carried out by project partners NBN and Urbis. Digital sessions are available across Australia, and in-person sessions will be held in Melbourne, Canberra, Brisbane, Perth, and Sydney. We encourage Members, colleagues and associates to participate.
Register for the Perth Accelerating Smarter Development Industry Engagement workshop.