perth northern suburbs
Lack of new land will contribute to major housing shortage, argues UDIA. Image – Canva.
  • Planning controls and infrastructure among the reason why Perth faces an impending shortage
  • The report is labelled as a "warning bell" by UDIA
  • Traditionally, half of new housing supply in Perth has come from new estates

A report released last Friday by the Urban Development Institute of Western Australia (UDIA) WA has revealed that Perth is projected to have demand outstrip supply within the next three years.

Threatening housing affordability in Perth, the Housing our Community: Acting Today to avoid tomorrow’s housing crisis report argues the industry is unable to deliver adequate housing due to restrictive planning controls, infrastructure constraints and land fragmentation.

UDIA WA CEO Tanya Steinbeck has labelled the report as a “warning bell for all stakeholders” in Perth and Peel, adding that no change will eventually lead towards a major housing crisis.

“The current rental crisis is really just the tip of the iceberg,” Ms Steinbeck said.

“Gone are the days when we can rely on the development industry to simply ‘turn on the tap’ and ramp up the production of new lots and apartments to meet a lift in housing demand.

“There is a perfect storm forming on the horizon. Just as we anticipate international borders re-opening and an influx of people choosing to call Perth home, we will effectively have run out of developable land that can respond quickly and efficiently.

‘These supply constraints will push up housing prices across Perth and Peel unless we address the issues now.”

Tanya Steinbeck, UDIA WA CEO

The report outlines that both zoned and serviced large land parcels are becoming increasingly scarce, with no new ‘master-planned developments on the scene.

Planning delays to infill areas are also impacting the delivery of projects across the property sphere.

Ms Steinbeck added that UDIA WA seeks to inform those who misunderstand how much ‘developable’ land is available in the Perth and Peel regions.

“We want to ensure that there is a clear understanding around what is available and what can be realistically delivered within what timeframes, so that we can work collaboratively with government on the solutions,” Ms Steinbeck said.

“If we can agree on the problem, we can start working on the solutions.”

According to the report, there are less than ten large estates operating in the north-east and south-west corridors while there is less than five years of lot supply left.  Ms Steinbeck said this is concerning given typically half of new dwellings in Perth have come from such estates, and has proposed several solutions.

“Firstly, we need to start tracking housing supply accurately so that we have a clear picture of what is happening in the market and what it is in the pipeline,” Ms Steinbeck said.

“Then we need to look at being much more strategic about prioritising development areas and allowing proponent led solutions to deliver housing in areas that are going to be accepted by the market,” Ms Steinbeck said.

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