REIWA welcomes new fund to boost housing completions

REIWA CEO Cath Hart today welcomed the Cook Government’s announcement of an interest-free loan facility to help home builders complete unfinished properties.

“Supply is the greatest issue facing the property market at the moment,” Ms Hart said.

“An increase in building completions, particularly those that have been under construction for several years, will help ease some of the pressure in the sales and rental markets.

“The COVID building incentives saw a huge spike in building approvals, but that hasn’t translated to completions. In the last three financial years WA has averaged 14,000 new dwellings per year. That’s just 42,000 additional homes; over the same period our population has grown by about 60,000 new households.

“And while we need new homes for new arrivals to WA, there are people who have been waiting years for their home to be finished.

“These delays have impacted the established homes market in several ways.

“Firstly, there are many people waiting for their new homes to be completed and this is hampering the usual turnover in both the rental and sales markets as people remain in their current homes for longer than planned.

“In addition, the various constraints in the building industry have seen people turn to the established homes market instead of building. This is putting more pressure on an already tight market.

“Delays are also hindering the addition of new rental stock to the market, with investors waiting on the completion of single dwellings or larger complexes.”

The new Builders' Support Facility will provide interest-free loans to help eligible residential builders complete new homes that have been under construction for more than two years.

As well as helping builders complete outstanding projects, the loan scheme aims to prevent further insolvencies, which would see more homes left incomplete.

“WA needs a strong and consistent pipeline of new dwellings to meet the needs of our growing population so any measure that gets homes out of the ground is greatly appreciated,” Ms Hart said.

“Financial assistance that provides cash flow for builders, allows them to complete homes and remain solvent is welcome support to the building industry, and by extension, the established homes market.

“I commend the Cook Government for the suite of initiatives it’s introducing to boost supply.”