Saturday, July 13, 2024

WA Govt puts out call for builders

The WA Government is calling for expressions of interest from builders and developers of all sizes to bolster the supply of housing and build new social housing throughout the state.

The updated Call for Submissions (CFS) for Social Housing invites submissions from the housing sector to deliver social housing in Perth or regional WA, with a priority on the delivery of apartment or grouped dwelling developments.

“The Cook Government’s ‘Call for Submissions’ procurement process is part of several reforms we’re undertaking to strengthen and accelerate the delivery of social housing across Western Australia,” said Housing Minister, John Carey.

“I encourage the housing sector across the State to register their interest for this opportunity.

“This CFS supports a number of significant housing delivery reforms already implemented by the Cook Government to help boost the supply of social housing throughout Western Australia.

“Our message is clear – we’re using every lever we can, to bolster the supply of social housing across Western Australia,” he said.

The Cook Government is investing $2.6 billion in social housing and homelessness measures in WA, including delivering around 4,000 social dwellings, and refurbishments and maintenance work to thousands more.

With the formation of a number of State Government building panels, 25 new, small and medium family builders were contracted to deliver new social housing in the 2022-2023 financial year. Nearly 100 small and medium builders have since been appointed to the State-wide builders panel and are now pre-approved to deliver new social housing.

Current advice from the housing construction industry is that the market is showing signs of tapering and therefore the State Government will aim to re-open the State-wide builders panel on an annual basis to create a pipeline of work for the housing construction industry.

According to a recent CoreLogic Cordell Construction Cost Index, which tracks the cost to build a typical new home,after two years of cost escalations in the building industry, the latest quarterly growth rate index was 0.7% at June 2023, the lowest rate since September 2020 across the country.

Importantly, according to CoreLogic, WA’s increase in cost escalations was the lowest at 0.5 % – signalling the construction market was beginning to show signs of tapering.

Submissions under the CFS that have development approval and are builder ready to go will be highly regarded.

The Department of Communities expects to issue further calls for submission in the second half of 2023, seeking partnerships with community housing providers and local governments.

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