A $2 billion WA Government investment in housing promises to ensure young people have the opportunity to buy their own home, with 34,000 new dwellings set to be built.
The investment, jointly funded by the Federal and WA Governments, is being announced as part of $4.7 billion set aside for housing and homelessness in the State Budget to be handed down this week.
The joint spend is expected to deliver more than 34,000 new homes, including 11,000 exclusively for first home buyers, over the next eight years.
WA Treasurer, Rita Saffioti promised increasing housing supply would be the number-one priority in the upcoming budget.
“We’re proud to have secured this landmark funding agreement with the Albanese Labor government, which will deliver thousands of new homes for Western Australians and put home ownership within reach for many,” she said.
The Australian Government will contribute more than $1 billion under the agreement to build the homes.
“Young Western Australians are not getting the housing opportunities they deserve and our governments are stepping up,” Federal Housing Minister, Clare O’Neil said.
“We’re rolling up our sleeves and building homes ourselves.”
Houses will be built in priority growth areas in and around Metronet station precincts, corridors including 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 program, in which the state government takes a 35% equity share, reducing the cost of buying a home by up to $250,000.
“By delivering a critical new supply of homes for first home buyers, my government is working with the commonwealth to ease pressure throughout the state’s housing market, ensuring every Western Australian has the security a home provides,” said WA Premier, Roger Cook.
“[The funding] will also support housing development in regional WA, where my government has recently announced it will build hundreds of homes for regional frontline workers as part of our Seven Cities vision.”
The announcement was welcomed by the construction industry, with Master Builders Australia saying builders were looking for this kind of action across all levels of government.
“Supply-side measures are what are needed to grow available stock, not simply shifting demand around (and) if we are to fight inflation and further interest rate hikes, increased construction and housing supply is a vital part of the mix,” said Master Builders Australia Chief Executive, Denita Wawn.
“Every $1 million spent in construction delivers around $2.5 million across the economy.”
The announcement showed the government was pulling the right levers in the housing sector, Urban Development Institute of Australia national president, Oscar Stanley said.
“We support the government’s continued ramp-up of housing and infrastructure deals with the states and territories to shore up delivery capacity and get more homes to market faster and hope to see more coming on line,” he said.
Source: AAP.
