Industry Issues 18-07-2024
From the CEO
As an industry, we are well versed in the challenges that are impacting on our ability to deliver sufficient housing supply to the market, and the knock-on effect that is having on affordability and the basic capacity of people to find a home that suits their needs.
While UDIA members are living the reality of the current housing supply crisis every day, it was still fascinating to see WA’s market context laid out in a set of statistics that clearly articulated where we are at during our Industry Breakfast event on Wednesday.
Anne Flaherty (Economist at REA Group) provided such a succinct picture of the current WA property market; it was well worth the listen as she articulated what many of our members are experiencing firsthand. Perth house prices are growing faster than any other capital city, it takes longer to build a home here than anywhere else in Australia, our population is booming, yet we can’t find the workers to build the homes we need. With WA seeing a 53% shortfall in the number of new homes completed in 2023 to accommodate our population growth, the current undersupply is more significant here than in any other State.
Her insights into the economic and demand/supply drivers that are currently at play, and the activity and preferences of investors and first home buyers, provided the foundations for a fantastic and wide-ranging panel discussion, that will likely give much food for thought to all those that were in the room. The thoughts and experiences shared around the emerging mismatch between buyer preferences for number of bedrooms and what we’re providing in our new housing stock, and why, was insightful.
A more detailed rundown of Anne’s presentation is provided in the story below, and Anne’s slides were also shared with attendees. From my perspective, the key message from all panelists is that we are in for a long battle, not a short fight, when it comes to addressing the constraints on housing supply and the implications that is having for the Perth property market and West Australians.
From a UDIA perspective, we have been advocating to all levels of government on the policy changes that are needed – both the short-term fixes and the longer-term solutions – that require action, are needed now. We have had some wins, and we will continue to focus our efforts as we lead into our State Election campaign and continue the battle to get more homes on the ground, faster.
UDIA WA Executive Director – Strategy & Policy
Sarah Macaulay
New Urban Policy to shape growth in Perth
Join us at our new event that will explore the draft National Urban Policy and what it means for Perth at our next Industry Lunch in August.
The Federal Government has released a draft Urban Policy for consultation that will aim to establish a clear vision for urban growth across the nation’s major urban areas, including Perth.
This event, hosted by UDIA WA, will be useful for anyone working in the development industry that wants to learn more about what the draft policy will cover, including how it will impact decision making and strategic planning for urban growth in Perth across all three tiers of government.
The objectives of the Draft National Urban Policy include enabling our urban areas to be liveable, equitable, productive, sustainable and resilient.
Join our speakers, including Dr Michael Fotheringham and Bronwen Clark, who both have a seat at the table on the National Urban Forum that has informed the draft, along with internationally recognised town planner Mike Day, as we unpack the detail of the draft policy and, more broadly, how we create and deliver on an urban growth vision for our cities from a local, state and Federal perspective.
For more information and to register here.
UDIA WA RAP endorsed
UDIA WA’s newly endorsed REFLECT Reconciliation Action Plan (RAP) represents our commitment to take real action to support reconciliation in Australia.
Now formally endorsed by Reconciliation Australia, our RAP forms part of a network of more than 3,000 corporate, government, and not-for-profit organisations that have made a formal commitment to reconciliation.
Our RAP actions are focused on building a strong foundation to progress our reconciliation journey in a meaningful way, including improving our direct engagement with Aboriginal stakeholders, exploring procurement opportunities, professional development and facilitating early engagement between industry and Traditional Owners during the development process.
A huge thank you to our RAP Working Group members who have assisted with developing the final document. Chaired by Jane Bennett, working group members include Anthony Fisk, Craig Wallace, Les Oakley, Heidi Ambury, Luke Middleton and Gemma Osiejak.
To learn more about UDIA WA’s Reconciliation Action Plan and included actions, you can download it here.
To discuss our RAP or get involved, please contact Gemma Osiejak: gosiejak@udiawa.com.au
Awards for Excellence Nominated Projects 2024
We are proud to announce the nominees for the UDIA WA Awards for Excellence in 2024!
Now in it’s 29th year, our prestigious awards recognise the best in the west and this year will be no exception. You can view the 2024 nominees here.
With more categories than ever, including our new Awards: Team of the Year and Local Government of the Year, there’s never been a better time to celebrate excellence, so join us when we unveil the winners at our industry night of nights, the Awards Gala Dinner on Saturday 16 September.
With a strong field of worthy nominees, we encourage you to show your support for the nominated projects and your colleagues by joining us to celebrate our industry’s achievements at the Gala Dinner, attracting over 500 key players in the industry.
Book your tickets by following this link.
A Keen insight into WA’s Housing Market
It was a pleasure to host guests at our Industry breakfast on Wednesday 17 July, unpacking the latest market statistics from REA Group Economist Anne Flaherty followed by a lively panel discussion featuring Lindasy O’Sullivan (CEO of Keystart), Emma Hains (Land & Wholesale Manager at ABN Group), and Trent Fleskens (Managing Director of Strategic Property Group).
Anne outlined key data trends that clearly articulate the current property market context. Currently the market in putting pressure on the conventional notion of buying a home in Australia given affordability constraints, rising interest rates and supply pressures. REA’s data showed that more people are searching for 2-3 bed homes as opposed to the traditional 4+ bed homes which is shifting the demand profile for housing supply moving forward. This shift is primarily attributed to shrinking household sizes and the trade-off that buyers are willing to make in relation to affordability – with the ‘nice to have’ spare room being cut in favour of a more affordable purchase price.
Other headline points include:
- WA is the fastest growing state in the nation
- Perth is experiencing the highest annual house price growth rate of any capital city in Australia.
- Homes take longer to build in WA than any other state.
- Construction costs are moderating but remain elevated.
- Demand from investors has increased significantly in WA over the last year, which will eventually have a positive impact on rental supply.
Our panellists explored the market further, with a focus on First Home Buyers & Investors and the importance of getting policy settings optimal to allow industry to deliver the right product to the market to meet demand.
The recent changes to Keystart’s eligibility criteria, including the indexation of the maximum house price cap to match REIWA’s median house price, is an important example of creating access to the market for the consumer through policy change. A welcome change that UDIA WA advocated for over several years.
A key takeaway from the day was the need to continue to foster investor activity in the WA market to boost supply, with Anne ending the panel session warning that property prices will continue to rise in WA for at least the next three years, until the supply pipeline can adequately meet ongoing demand.
UDIA WA has been actively advocating on a range of fronts to support industry to get more homes on the ground, faster. We will continue that work as we lead up to the State Election in early 2025.
We pass our thanks onto our event sponsor Barnao Property and research partner REA Group for supporting today’s event.
We hope attendees found this event informative and engaging and look forward to welcoming you to an upcoming event. Head to the Event Gallery here to view pictures taken on the day.
Policy Team in Action
On Monday morning, the Policy Team and representatives from the Environment & Climate Action Committee met with representatives from Minister Whitby’s Office to discuss components of UDIA WA’s policy priorities, specifically around regional planning and streamlining environmental approvals. This follows on from the discussions had at our Boardroom Lunch event with Minister Whitby in June where these topics were actively discussed. It was great to present our ideas to the Government and to have a robust discussion around the next steps on these issues from an industry perspective.
On Tuesday afternoon, the Policy Team and Infrastructure Committee representatives met with Minister McGurk’s Office to discuss UDIA WA’s current priorities, particularly as it pertains to the Minister’s portfolios of Water and Training and Development. This was a useful discussion which helped us get more into the details around UDIA’s current priorities, particularly around enabling water infrastructure requirements for key growth areas, and how these can support the industry to bring housing supply to the market, faster.
We look forward to continuing these productive discussions with Government and ensuring our priorities are heard and explored.
Yanchep rail extension open
The latest instalment of the State Government’s METRONET program has come to fruition with the grand opening of the Yanchep rail extension last weekend.
Jointly funded by the Federal and State Governments, the Yanchep rail extension extends the Joondalup line a further 14.5 kilometres north of Butler to Yanchep. The extension includes three new stations to service Alkimos, Eglinton and Yanchep.
The new stations will facilitate further development in these high growth areas and improve connectivity for residents and visitors.
Read the Government’s media release here.
LandPartners joins MNG, strengthening leadership in integrated land survey and spatial solutions
MNG have announced that on 1 July 2024, major east coast survey and planning group, LandPartners, officially joined forces with MNG.
MNG and LandPartners hope the move brings additional capability, capacity, and reach to their respective clients while at the same time creating more opportunities for their people by being in the top 5 firms of its type in the country.
Scott Anderson, CEO and Managing Director of MNG, expressed his enthusiasm: “Welcoming LandPartners into the MNG family marks a significant milestone. The alignment of our services and cultures strengthens our market position and opens new avenues for innovation and growth. We are thrilled about the future and the enhanced solutions we will offer our clients.”
The businesses officially came together on July 1st and whilst it is business as usual for clients, the internal teams are working collaboratively together towards ensuring a seamless integration. MNG look forward to sharing the evolution with the world as it unfolds.