"Supply is the biggest challenge in the property market at the moment," expert says
The Real Estate Institute of Western Australia has praised the Cook government for its announcement of a dedicated Housing Supply Unit aimed at addressing the pressing issue of housing supply and affordability in Western Australia. According to Ms. Hart, the current lack of supply has had a significant impact on both the sales and rental sectors of the property market.
“Supply is the biggest challenge facing the property market at the moment, with significant impacts on both sales and rental sectors,” REIWA CEO Cath Hart said. “The current situation has been years in the making – the biggest lesson out of the past decade is how important it is that WA maintains its long-term average of 22,000 new home builds per year to meet the needs of our growing population and the natural change in household structure as children grow up and move out, or even as relationships change and one household becomes two.”
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Hart highlighted the need for a dedicated unit that actively monitors market data, population growth, and economic factors to develop responsive and proactive policies that cater to the diverse housing needs of the state, including social, affordable, key worker, and Government Regional Officer housing, as well as addressing homelessness.
“We particularly welcome the liaison with industry bodies as we can provide up-to-the-minute feedback on changing market conditions and feedback from our members on the ground,” Hart said. “The government has clearly recognised the effect housing supply is having on the market. It has already announced several initiatives to boost supply, and we commend this additional action.”
The Housing Supply Unit, which will be established within the Treasury, is expected to leverage the department's expertise in providing budgetary and economic advice to the government, REIWA reported. This alignment is crucial considering the strong correlation between housing supply and the state's economic conditions and diversification objectives.
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