WA’s increase in new home completions is leading the nation but is still 500 homes short of the National Housing Accord Target, according to the ABS.
WA’s increase in new home completions is leading the nation but is still 500 homes short of the National Housing Accord Target, according to new data from the Australian Bureau of Statistics.
In the September 2024 quarter, some 5924 homes were built in WA – the first three months of the NHA timeframe – up 32.8 per cent on the previous quarter.
For WA to meet its NHA target of 130,000 homes by the end of June 2029, it would need 6500 homes per quarter or 26,000 per year.
WA built 17,700 homes in FY24.
Property Council WA executive director Nicola Brischetto said WA’s 33 per cent jump compared to the previous quarter was highly encouraging.
“This is the largest increase in home completions of any Australian state or territory,” she said.
“WA, however, has already fallen more than 500 homes behind in meeting its NHA target – in just the first three months of the timeframe.
“The availability of skilled labour and the challenging financial feasibility of building multi-home projects, such as apartments, are the most significant barriers to WA meeting its target.”
Ms Brischetto said demand would be strong well into the future, and a dramatic increase in supply was needed to avoid continued price pressures.
“If we don’t pull out all the stops now, we risk home ownership falling further out of reach for entire generations of Western Australians,” she said.
Nationally, some 43,200 homes were completed in the first three months of the NHA.
The figure is 4.6 per cent higher than the previous quarter, and 13.9 per cent higher than the same quarter in 2023.
Master Builders Australia chief executive Denita Wawn said there was a long way to go to reach the level of output required under the NHA.
Over the year to September 2024, the 165,048 homes commenced construction, well short of the 200,000 required.
If the same commencement pace is kept, Australia will begin construction of 825,000 homes over the next five years – 350,000 short of the target.
“Our performance in apartment construction will be key to whether we meet the target,” Ms Wawn said.
“Apartment construction levels remain too low because the investment appetite is not here.
“Low productivity, labour shortages, costly and restrictive CFMEU pattern agreements, a lack of supporting infrastructure and a high inflationary environment all contribute to project costs not stacking up.”
WA Premier Roger Cook said the state was closing in on its target.
“We know that we’ve got a challenge. We are literally throwing everything at the housing issues,” he said.
He said the rental vacancy rates had eased and the increases in property values had begun to slow.
