Thousands of homes promised in multibillion dollar plan
The $2 billion housing investment promises young people to have the opportunity to buy their own homes, with 34,000 new homes to be built.
The investment, jointly funded by the federal and Western Australian governments, is being announced this week as part of $4.7 billion earmarked for housing and homelessness in the state budget.
Shared spending is expected to deliver more than 34,000 new homes over the next eight years, including 11,000 for first home buyers.
WA Finance Minister Rita Saffioti has promised that increasing housing supply will be the number one priority in the upcoming budget.
“We are proud to have secured this landmark funding deal with the Albanian Labor government, which will deliver thousands of new homes for Western Australians and make it easier for many people to become homeowners,” he said.
The federal government will contribute more than $1 billion under the agreement to build the homes.
“Young West Australians are not getting the housing opportunities they deserve and our governments are taking action,” Federal Housing Minister Clare O’Neil said.
“We roll up our sleeves and build houses ourselves.”
Homes will be built in priority growth areas in and around Metronet station areas, corridors such as North Ellenbrook and East Wanneroo, and regional locations such as Albany, Eaton, Australind and East Boyanup.
First home buyers will be supported through a shared equity scheme under which the state government takes a 35 per cent equity share, reducing the cost of buying a home by up to $250,000.
“My government is working with the states to relieve pressure on the state’s housing market by delivering a critical new housing supply for first home buyers and ensure every West Australian has the security of a home,” Premier Roger Cook said.
“(The fund) will also support housing development in regional WA, where my government recently announced it would build hundreds of homes for regional frontline workers as part of our Seven Cities vision.”
The announcement was welcomed by the construction industry and Master Builders Australia said builders were seeking such action at all levels of government.
“Supply-side measures are needed not just to shift demand but to grow existing stock (and) if we are to fight inflation and further interest rate rises, increased construction and housing supply is a vital part of the mix,” Master Builders Australia CEO Denita Wawn said.
“Every $1 million spent on construction brings approximately $2.5 million into the economy.”
Australian Urban Development Institute national president Oscar Stanley said the announcement showed the government was using the right tools in the housing sector.
“We support the government increasing housing and infrastructure agreements with states and territories to support delivery capacity and ensure more homes are brought to market faster, and we hope more will come into play,” he said.
