Market Herald logo

Subscribe

Be the first with the news that moves the market
  • More than one-third of Perth’s approved pipeline of apartment developments are on hold due to skills shortages, according to new research
  • The recent Property Council WA study said about 10,000 units have been postponed, with price increases rendering the projects unfeasible for the time being
  • Property Council WA Executive Director Sandra Brewer says swift action is required to avert a future housing and affordability crisis
  • According to the research, the long-term solution is policies that boost housing supply and provide different housing options

More than one-third of Perth’s approved pipeline of apartment complexes – and an extra $2.2 billion of apartment projects yet to get regulatory permission – are on hold due to a shortage of skills, according to research conducted with 21 apartment developers.

The recent Property Council study, Delivering Housing Supply and Affordability for Western Australians, reveals about 10,000 units have been postponed, with price increases rendering the projects unfeasible for the time being.

According to the analysis, the pipeline disruption will have a substantial impact on affordability. Already, due to supply limits and market buoyancy, the typical house price within 10 kilometres of Perth’s CBD has risen to over $1 million, with the average Perth family now needing to save for an additional two years to meet house price gains in the previous year alone.

Property Council WA Executive Director Sandra Brewer said swift action is required to avert a future housing and affordability crisis.

“Despite positive policy announcements during the pandemic, like the WA Building Bonus and stamp duty rebates for apartments sold off-the-plan, years of undersupply and underinvestment have put pressure on house prices,” she said. 

“As housing becomes more expensive, people move down the property ladder, escalating demand for social housing and puts more people at risk of homelessness.”

According to the Property Council’s research, the long-term solution involves policies that boost housing supply and provide different housing options.

It suggests legislative solutions that prioritise population growth, alleviate labour shortages, eliminate investment impediments, and establish alternative housing models.

“We know housing affordability is influenced by many interrelated factors that cannot be addressed in isolation,” Ms Brewer said.

“Periods of rapid economic growth have shown us that fixing housing affordability requires policy focused on workers first – because, without workers, property markets cannot deliver the homes people need.”

More From The Market Herald
Abacus Property (ASX:ABP) - Managing Director, Steven Sewell

" Abacus Property (ASX:ABP) profits soar 336pc after acquisitive FY21

The acquisitive Abacus Property (ASX:ABP) has posted a statutory profit of $369.4 million in FY21, thanks…

" Australian property prices record biggest 12-month growth in history: ABS

Residential property prices rose 23.7 per cent in the last year, the fastest annual increase on…

" Perth lags national CBD bounce-back as office workers leave city deserted

Perth has recorded its lowest office occupancy level since July 2020, according to the Property Council of Australia Office Occupancy Survey, as the