Western Australia Faces Decades Long Housing Shortage
Western Australia to face a housing shortage for years to come, presenting a strong opportunity for property developers and investors.
Property Investment Opportunity: Western Australia Faces Decades Long Housing Shortage.
– By Ryan Northover
PERTH, Western Australia- The housing crisis shows no signs of abating, with Australia needing to produce at least 50,000 new dwellings per year, above the current figure of 150,000 new homes.
“There is regularly a shortage and the gap is widening each year,” OECD economist Christophe Andrew of said of the housing crisis.
There are many factors contributing to the lack of homes for Australians, commentators say. Some blame the high taxes levied by Australian governments on new homes, others say the pool of capital being invested in equities should be allocated to property to fight the shortfall.
Christoperh Joye, Managing Director at Rismark, suggested superannuation funds should move into property.
“Way too much capital is being allocated to risky Australian shares and global shares. And very little superannuation money is being invested in fixed income and credit that is used to fund infrastructure projects and residential property,” Joye said in an ABC story in 2013.
Joye also pointed the finger directly at government tax grabs.
“I think the villains are really local and state governments. Around 45 per cent of all their tax revenue now comes from property and non-stamp duty property taxes have been growing at 10 per cent per annum since 2002, way in excess of house price growth,” Joye suggested.
More on Australia’s housing shortage from ABC TV’s ‘The Business’ program.
WA’s housing crisis, the data:
In Western Australia, the shortage is going to last many years, figures show.
Its clear the lack of properties in boom cities like Perth, surrounding suburbs and in the south-west of Western Australia will continue well into the future, presenting a strong opportunity for unit development investors for years to come.
Recent HIA figures show demand for new property in Western Australia is set to remain very high well into this decade, with the shortage of property increasing almost exponentially well past 2020, according to charts provided below.
In the report, seven of 20 local council areas with the greatest housing shortage nationally will be in Western Australia.
The report says that if the rate of home building stays at average pace, WA will suffer a shortfall of 120,000 homes by 2020.
The most critical local government areas include Joondalup (6272), Rockingham (4524), Melville (4377) and Swan (4374).
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Graphic: Western Australian property shortage to surge for at least the next ten years. Investors and property developers are likely to benefit from the shortage for many years ahead.
Graph: Areas across Western Australia with the most critical shortage of housing from a 2011 report.
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