$2 billion boost announced for first-home buyers and new developments
More than $2 billion is being poured into housing in a partner state and Commonwealth in Western Australia in an effort to make it easier for first home buyers to enter the market.
The pre-budget announcement, which includes more than $1 billion from the federal government, aims to increase supply in Metronet areas, pave the way for new housing and increase housing supply in the state’s areas.
By investing in “priority growth” areas, land development and energy and water infrastructure, it aims to deliver more than 34,000 new homes, including 11,000 for first home buyers.
According to the agreement announced on Sunday, $522 million will be transferred to the Housing Infrastructure Fund to provide electricity and water infrastructure; 694.3 million dollars will be transferred to land development works in the Metronet train station areas; $373 million will fund a new build-sell program; and $250 million will enable the establishment of a first home buyer financing facility provided by Keystart.
An additional $40 million will be spent on the Infrastructure Development Fund and $50 million will be transferred to the Regional Housing Support Fund.
The Cook government claimed Housing Infrastructure Fund investment and land development in Metronet areas would “unlock more than 7,500 homes for first home buyers”, while 500 homes would be built for first home buyers alone in the new build-to-sell programme.
The news was welcomed by the Property Council of Australia, with WA chief executive Nicola Brischetto stating it was “an incredibly different time to be a first home buyer” in the state.
“A constrained labor market, rising materials costs and disrupted global supply chains are putting enormous pressure on the construction industry to deliver homes where aspiring homeowners need them most – at the affordable end of the market and in residential infill projects,” he said.
“Investments in enabling infrastructure are critical to ensuring the delivery of new homes, particularly in transit areas and established suburbs.
“These are important areas of the housing market that need to be supported by government during this volatile time as Western Australia strives to achieve its National Housing Agreement target.”
Latest forecasts predict a shortfall of around 13,000 homes in WA’s share of the National Housing Deal target.
Master Builders WA managing director 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 currently needed in the housing sector alone,” he said.
“$522 million for the Housing Enablement Infrastructure Fund and an additional $694.3 million for land development would go a long way in accelerating supply-side relief.”
Planning, Housing and Public Works Minister John Carey said this year’s state budget will support efforts to clear land and reduce red tape.
“This is an investment that will be supported by further planning reform 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 that will enable young West Australians to own a home of their own”.
“Australians aren’t expecting a free ride, they just want a fair chance to buy a home. This deal provides more homes and puts first home buyers first,” he said.
But the WA Greens bemoaned the focus on first home buyers as renters’ situation remained poor.
Housing spokesman Tim Clifford called on the Western Australian government to make Thursday’s budget a tenant budget.
“We know thousands of AirBnBs and vacant properties could be made available across Western Australia to ease the rental 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 ease the pressure on first home buyers, enable wealthy investors to pay more, and in the process increase government revenue to spend on new social and affordable housing projects.
“It is finally time to ban no-cause evictions and put a permanent cap on rent increases because they are out of control.
“The 74 per cent increase in average rents over the last five years is completely unsustainable; it’s no wonder so many WA families are living with housing stress.”
So where is the innovation?
WA Liberals, meanwhile, accused the Cook government of failing to deliver a single grant from its $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 is being introduced as a mix of competitive grants and low-interest loans to help the industry improve the speed, accuracy and sustainability of housing delivery across Western Australia.
However, the state opposition claims that no grant approval was announced from the fund, which opened last year, with applicants being told they would receive a decision by March.
Opposition housing spokeswoman Sandra Brewer said Western Australians should be wary of promises of new housing with no delivery timetable, as the state budget is due to be announced on Thursday.
“Big spending promises don’t always translate to households, and we’ve seen that over and over again under the Cook Labor government,” he said.
“While Minister Carey has issued 20 media releases in the last few weeks alone, DevelopmentWA only has one block of land for sale in the metro area.
“They are big on announcements, small on details, and absent from presentation.”
In response, a provincial government spokesman said the Liberals had no housing policies and had not brought any policies to the election to support alternative and modern construction methods.
“Housing Innovation Fund applications are now closed and we will have more to say about successful buyers soon,” they said.
“DevelopmentWA has sold more than 1,800 lots in the metro area this financial year, with hundreds more coming to market in the coming months and hundreds more now available in regional WA.”
Latest data from the Australian Bureau of Statistics shows Perth has had the highest house building price growth in the country since March 2021, with Brisbane up 38 per cent.
Brewer said builders were ready to innovate and had accepted the government’s offer of co-investment but were waiting for a response.
Norm Roberts, managing director of wood-panelled housing manufacturer OFFSITE, said prefabricated housing could deliver faster, more affordable results.
“Traditional construction times will become even longer due to ongoing shortages of commercial materials, and at this point modular, prefabricated solutions can deliver homes in as little as 26 weeks,” he said.
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