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As governments right across the country act to boost housing supply, Western Australia has announced a dedicated Housing Supply Unit with the state’s Department of Treasury.
Western Australia is presently wrestling a housing shortage, with state capital, Perth, in the midst of a listings shortage while it grapples with the tightest rental market in the country after it recorded a vacancy rate of 0.4 per cent during September.
The state government has responded to this supply crunch with the establishment of the Housing Supply Unit, which is expected to be operational from January 2024.
Reporting to the Residential Lands and Housing Delivery Ministerial Oversight Committee, the unit will be responsible for producing economic forecasts for WA, as well as the development of market-driven housing policies, including measures targeting increased supply and improved choice and affordability.
As part of the unit’s remit, it will regularly consult with the residential building industry and the property development sector to identify barriers hindering increased supply, while also working with other agencies as well Government Trading Enterprises to remove these barriers.
WA Treasurer Rita Saffioti said the unprecedented move “highlights how important [housing supply] is to our government”.
Cath Hart, chief executive officer at the Real Estate Institute of Western Australia (REIWA), believes a “specific unit actively monitoring factors like market data, population growth and the economy will help develop responsive and proactive policy to meet the changing and diverse housing needs of our state”.
Having summed up the issues plaguing the state’s housing market as being “years in the making”, Ms Hart welcomed the introduction of the unit as an indication the state government has “clearly recognised the effect housing supply is having on the market”.
“We particularly welcome the liaison with industry bodies as we can provide to-the-minute feedback on changing market conditions and feedback from our members on the ground,” she added.
By placing the unit within the Treasury, the government hopes it will be able to harness the Treasury’s strengths in providing budgetary and economic advice to the government, especially considering the links between housing supply and the wider economic condition of the state.
Ms Saffioti explained: “The Department of Treasury has significant strength in providing economic and fiscal advice to the government and is ideally placed to provide strategic guidance, with significant national investment expected to flow following the passage of the Housing Australia Future Fund (HAFF) by the federal government.”
The unit will support the state government’s push for a fair share of funding dished out by federal funding pools, including from recently ratified HAFF, a $10 billion fund set to be leveraged on the stock market that will play a major role in meeting the government’s future supply targets.
As part of its role, the Housing Supply Unit will complement existing functions within the Department of Communities, including social, affordable, remote, key worker and Government Regional Officer Housing, while also aiming to address homelessness and continue to drive WA’s interests related to housing policy and funding on a national level.
Ms Saffioti noted establishing the unit is the latest housing-focused initiative conducted by the Western Australian government, which includes the $750-million housing package outlined in the budget for the current financial year, as well as “the recent extension of the off-the-plan transfer duty concession in apartments under construction”.
State Minister for Housing John Carey added: “Our government is using every lever we can to accelerate the delivery of housing throughout Western Australia.
“We’re investing a record $2.6 billion in housing and homelessness measures, including the delivery of 4,000 social homes and refurbishment and maintenance to thousands more.”
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