Western Australia’s housing industry has been given $2 billion funding boost from the state and federal governments.
And the news has been welcomed by the Property Council of Australia.
Under the western state’s 100,000 Homes for First Homes Buyers scheme, Canberra will spend more than $1 billion on state programs to build 34,000 new homes, including 11,000 for first home buyers.
The intention is to boost housing supply around METRONET station precincts, new residential estates and in regional WA.
Premier Roger Cook calls the funding package “significant” that will build more homes around station precincts and in regional areas.
“By delivering a critical new supply of homes for first home buyers, my government is working with the Commonwealth to ease pressure throughout the state’s housing market.”
Federal Housing Minister Clare O’Neil says: “This is about something simple; making sure young Western Australians can afford a home of their own.
“Right now, too many Western Australians feel locked out of the housing market. This investment is about changing that, building more homes and backing first home buyers to get in.”
WESTERN HOUSING DEAL
The deal involves:
• Joint spending of $522 million on new power and water infrastructure around METRONET precincts, growth corridors like North Ellenbrook and East Wanneroo and regional areas like Albany, Eaton, Australind and East Boyanup.
• $694.3m for land works around METRONET stations.
• $375m on a new state-led build-to-sell program to build 500 homes for first buyers who will be helped by a shared equity program (with a 35% stake held by state government) to cut prices by up to $250,000 in locations like Alkimos, Ballajura, Bertram, High Wycombe, Midland, Stratton, Wellard, Yanchep, Geraldton and Bunbury.
• A new $250m commercial financing facility to offer low-cost finance to multi-unit developments targeting first home buyers.
• A joint $40m top-up for the Infrastructure Development Fund (or IDF, worth $80m) and $50m for the Regional Housing Support Fund (already worth $25m).
New homes and residential lots are expected to become available by next year.
Planning Minister John Carey says the spending “will be backed up by further planning reforms to further accelerate” new housing developments.
PROPERTY COUNCIL PLEASED BY NEWS
The Property Council of Australia says it welcomes the $2bn deal.
The council’s WA Executive Director Nicola Brischetto says it is “an incredibly difficult time” to be buying a first home in the state.
“Investment in enabling infrastructure is critical in enabling delivery of new homes, particularly in transit precincts and established suburbs,” she says.
“As Western Australia strives to reach its National Housing Accord target, these are crucial areas of the housing market that need to be supported by government at this volatile time.
“The Property Council of Australia welcomes the announcement,” Brischetto says.
“The ability to access low cost financing, along with the recently announced pre-sales guarantees will help apartment projects in key infill areas get out of the ground faster.
“The additional $40 million for the IDF will further support these projects,” she says.
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