More than $2 billion is being tipped into housing in Western Australia in a joint state and Commonwealth effort to make it easier for first-home buyers to get into the market.
The pre-budget announcement, including more than $1 billion from the federal government, aims to boost supply around Metronet precincts, pave the way for new residential estates, and lift housing supply in the state’s regions.
It aims to deliver more than 34,000 new homes – including 11,000 for first-home buyers – through investment in “priority growth” areas, land development works, and power and water infrastructure.
Under the agreement, revealed on Sunday, $522 million would be tipped into the Housing Infrastructure Fund to deliver power and water infrastructure; $694.3 million would go towards land development works at Metronet train station precincts; $373 million would fund a new build-to-sell program; and $250 million would establish a first-home buyer financing facility to be delivered by Keystart.
Another $40 million will be spent to top up the Infrastructure Development Fund and $50 million will go towards the Regional Housing Support Fund.
The Cook government claimed the Housing Infrastructure Fund investment and land development works at Metronet precincts would “unlock more than 7500 homes for first home buyers”, while the new build-to-sell program would see 500 homes built for first-home buyers alone.
The news was welcomed by the Property Council of Australia, with WA executive director Nicola Brischetto noting it was “an incredibly different time to be an aspiring first home buyer” in the state.
“A restrained labour market, rising material costs and disrupted global supply chains are posing immense pressure on the construction industry to deliver dwellings where aspiring home owners need them the most — at the affordable end of the market and in residential infill projects,” she said.
“Investment in enabling infrastructure is critical in enabling delivery of new homes, particularly in transit precincts and established suburbs.
“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.”
Recent forecasts predict a shortfall of about 13,000 homes in WA’s share of the National Housing Accord target.
Master Builders WA chief executive Matt Moran said the “targeted action” announced on Sunday was appreciated.
“Another challenge facing the building and construction industry is our critical worker shortage, with tens of thousands of additional workers needed currently in the residential sector alone,” he said.
“The $522 million for the Housing Enabling Infrastructure Fund and the further $694.3 million for land development works will go a long way to accelerating supply-side relief.”
Planning, Housing and Works Minister John Carey said this year’s state budget would bolster efforts to unlock land and cut red tape.
“It’s an investment that will be backed up by further planning reforms to further accelerate the delivery of housing development,” he said.
Federal Housing, Homelessness and Cities Minister Clare O’Neil said the agreement was “about something simple, making sure young Western Australians can afford a home of their own”.
“Australians don’t expect a free ride, they just want a fair chance to buy a home. This deal delivers more homes and puts first home buyers front and centre,” she said.
However, the WA Greens lamented the focus on first home buyers when the situation for renters remained grim.
Housing spokesman Tim Clifford urged the WA government to make Thursday’s budget a renter’s budget.
“We know there are thousands of AirBnBs and vacant properties across Western Australia that could be made available to ease the renting crisis and put downward pressure on rental prices,” he said.
“We also know that replacing stamp duty with an annual, broad-based land tax would take the pressure off first home buyers while making wealthy investors pay more, increasing government revenue to spend on new social and affordable housing projects in the process.
“Finally, it is time to ban no-grounds evictions and put a permanent cap on rent increases, because they are out of control.
“A 74 per cent increase in median rents over the last five years is completely unsustainable, no wonder so many WA families are living in housing stress.”
But where’s the innovation?
Meanwhile, the WA Liberals accused the Cook government of failing to deliver a single grant from a $50 million election promise aimed at delivering innovative solutions to the ongoing housing crisis.
The Housing Innovation Fund was promised at the 2025 state election and promoted as a mix of competitive grants and low-interest loans to help industry increase the speed, accuracy and sustainability of housing delivery across WA.
However, the state opposition claims no grant approvals have been announced from the fund, which opened last year with applicants told they would receive decisions by March.
Opposition housing spokeswoman Sandra Brewer said, with the state budget set to be announced on Thursday, West Australians should be wary of another round of housing promises with no delivery timetable.
“Big spending promises don’t always translate into homes, and we’ve seen that time and again under the Cook Labor government,” she said.
“While Minister Carey put out 20 media releases over the last few weeks alone, DevelopmentWA has just one block of land for sale in the metropolitan area.
“They are big on announcements, small on detail and non-existent in delivery.”
In response, a state government spokesperson said the Liberals had no housing policies and took no policies to the election to support alternative and modern construction methods.
“Applications for the Housing Innovation Fund are now closed and we will have more to say soon on successful recipients,” they said.
“DevelopmentWA has sold more than 1800 lots in the metropolitan area this financial year, with hundreds more coming to the market in the coming months and hundreds currently available in regional WA.”
Recent Australian Bureau of Statistics data shows Perth had the joint highest home construction price increase in the nation since March 2021, rising 38 per cent, tied with Brisbane.
Brewer said builders were ready to innovate and have taken up the government’s offer to co-invest, but were waiting on a response.
Timber panelised housing manufacturer OFFSITE chief executive Norm Roberts said prefabricated housing could deliver faster, more affordable outcomes.
“With ongoing tradie shortages, traditional build times will only get longer, and that’s where modular, prefabricated solutions can deliver homes in as little as 26 weeks,” he said.
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