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The Western Australian government has announced a second round of funding to help builders complete unfinished properties.
Following a spate of insolvencies in Western Australia and across the country, the state announced in January of this year that it would introduce a $10 million loan facility to provide interest-free loans of up to $300,000 (up to $60,000 per property) for residential builders trying to complete homes that have been under construction for more than two years.
Almost $6 million was allocated in the first round, and the government has opened a second application window to allocate the remaining funds, with the hope of helping Western Australian residents stuck in “building limbo” finally move into their homes.
With this new application period, the deadline for properties to have started construction has been moved from 1 January 2022 to 1 July 2022.
All together, Treasurer Rita Saffioti said that the government expected it would assist in the completion of almost 100 homes, with the extension enabling “even more families to move into their homes sooner than they otherwise would have”.
Indeed, several industry bodies have used the event of this announcement to stress the difficult conditions that builders in Western Australia have faced over the past several years, and explain how this is curtailing the state’s ability to get much-needed supply on the ground.
Housing Industry Association Western Australia executive director Michael McGowan pointed to “delays, disruptions, a deficit of trades and cost escalations while operating within the terms of a fixed price contract” for creating turbulent operating conditions for the building industry over the last three years.
He welcomed the news of the second round of loan funding, as did the Real Estate Institute of Western Australia (REIWA).
“Financial assistance that provides cash flow for builders, allows them to complete homes and remain solvent is welcome support to the building industry, and by extension, the established homes market,” commended REIWA CEO Cath Hart.
“WA needs a strong and consistent pipeline of new dwellings to meet the needs of our growing population so any measure that gets homes out of the ground is greatly appreciated,” she added.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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