Western Australia’s budget will benefit property development, but leave tenants out in the cold

I don’t think the budget recognizes the scale of the problem we have with housing and homelessness. I think all the initiatives should be commended, but they don’t go far enough.”

Download

“The problem is that the massive budget surplus has provided a great opportunity to address the levels of deprivation that are mounting in society that have not,” he said.

There has been a housing shortage, Glason said, so investments in creating more have been positive, but it has done nothing to help those with little or no chance of being able to buy a home.

“While the budget will get more homes on the land, which we have to admit, it doesn’t solve the problem for those people who wouldn’t have these homes as an option,” he said.

“The Western Australian economy has been doing really well. We have done our best during the pandemic and everyone should be able to reap the benefits. The people doing it the most should have been at the front of the waiting list, but that has not been the case.”

After record spending on social housing in last year’s budget, Cassandra Wenzar, chief economist at CEDA, said this year I focused on stimulating the private sector to provide more affordable and affordable accommodation.

“These are positive moves, but given the long construction time frames, it will take some time to flow through the supply of additional housing,” she said.

There is little in the budget to address the current severe shortages and affordability concerns in the rental market.

“The new 50 percent land tax concession for lease-based developments will be introduced from 2023. This will increase the supply of rents, but will take some time to make an impact.”

She said the plan’s discount would provide support for high-density development, which “has lagged behind single-home development for some time.”

Download

The Real Estate Institute of Western Australia welcomes the housing and affordability measures described.

President Damian Collins said the positive outlook for the Western Australian economy will see the current strong cycle of the WA housing market continue.

Declared Actions [on Thursday] I recognize the critical role of stimulating the private sector to create more housing supply, both through new construction and innovative investment models,” Collins said.

But he also noted that the rental shortage remains a major challenge for Western Australia, with vacancy rates across the state at or near record lows.

Declared Actions [in the budget] It will help, but we anticipate that it will take some time to work through the supply challenges faced by the Western Australian market.

%d bloggers like this: