❓ Dr. Honey questions the effectiveness of new planning laws in increasing housing supply, citing statistics on apartment construction and overall approvals. Minister Carey defends the reforms, attributing delays to COVID-related cost escalations and highlighting government initiatives to address market failures.
AnsweredQoN 900Legislative Assembly
QuestionView source ↗
HOUSING — APARTMENT CONSTRUCTION
900. Dr D.J. HONEY to the Minister for Planning:
I refer to an article in The West
Australian on 6 November that reports that Property Council of Australia
research shows that out of 12 500 apartments
already approved for construction since 2020—that is four years ago—only
2 140 apartments have been built or have had construction commenced.
Furthermore, Australian Bureau of Statistics data shows —
Mr W.J. Johnston interjected.
The SPEAKER : Member for Cannington, please do not
interject while the question is being asked.
Dr D.J. HONEY : Furthermore,
Australian Bureau of Statistics data shows that over 30 000 residences were
approved for construction in 2013–14 and 2014–15 under old
planning laws whilst just over 17 000 were approved last financial year under
the government's new planning laws.
Given these facts, how can the
minister possibly continue to claim that the changes to the planning laws were
necessary to improve the supply of housing in Western Australia?
900. Dr D.J. HONEY to the Minister for Planning:
I refer to an article in The West
Australian on 6 November that reports that Property Council of Australia
research shows that out of 12 500 apartments
already approved for construction since 2020—that is four years ago—only
2 140 apartments have been built or have had construction commenced.
Furthermore, Australian Bureau of Statistics data shows —
Mr W.J. Johnston interjected.
The SPEAKER : Member for Cannington, please do not
interject while the question is being asked.
Dr D.J. HONEY : Furthermore,
Australian Bureau of Statistics data shows that over 30 000 residences were
approved for construction in 2013–14 and 2014–15 under old
planning laws whilst just over 17 000 were approved last financial year under
the government's new planning laws.
Given these facts, how can the
minister possibly continue to claim that the changes to the planning laws were
necessary to improve the supply of housing in Western Australia?
AnswerView source ↗
I thank the member for his question.
I have been on the public record multiple times on this issue. We heard the
member for Cannington refer to this. The member cannot make that comparison.
COVID radically reshaped housing markets.
Dr D.J. Honey interjected.
The SPEAKER : Order, please.
Mr
J.N. CAREY : In particular, we
have seen massive cost escalations; a single home has gone up 30 to 40 per
cent. The cost of medium to high-density multi-dwellings has gone up
well beyond that. Anyone in the private sector will tell the member it is
because of those cost escalations that the viability of medium to high-density
product is under enormous strain. We are seeing market failure because of cost
issues. We understand that the best policy settings need to be in place to
assist the market failure. The first has been the creation of our
infrastructure fund, which is providing funding for both water and power
headworks to enable projects to get off the ground. We have done that. We also know that any delays in
planning approvals can make or break projects. I want to be very clear—it
can make or break projects. Industry across the board like the Housing Industry
Association, Master Builders WA and the Property Council representing
small to large project builders have endorsed our planning reforms because it
is about trying to create the streamlining of approvals. The member for
Cottesloe shows absolute ignorance of current market conditions.
Dr D.J. Honey interjected.
The SPEAKER : Order, please.
You have asked the question. Please continue with your answer, minister.
Mr
J.N. CAREY : Western Australia is
not alone. Every state in the country is facing the same winds when it comes to medium and high-density housing. We have the best policy settings in the
country for planning reform. The member
cannot make comparisons with that timeframe prior to COVID when market
conditions were very different .
I have been on the public record multiple times on this issue. We heard the
member for Cannington refer to this. The member cannot make that comparison.
COVID radically reshaped housing markets.
Dr D.J. Honey interjected.
The SPEAKER : Order, please.
Mr
J.N. CAREY : In particular, we
have seen massive cost escalations; a single home has gone up 30 to 40 per
cent. The cost of medium to high-density multi-dwellings has gone up
well beyond that. Anyone in the private sector will tell the member it is
because of those cost escalations that the viability of medium to high-density
product is under enormous strain. We are seeing market failure because of cost
issues. We understand that the best policy settings need to be in place to
assist the market failure. The first has been the creation of our
infrastructure fund, which is providing funding for both water and power
headworks to enable projects to get off the ground. We have done that. We also know that any delays in
planning approvals can make or break projects. I want to be very clear—it
can make or break projects. Industry across the board like the Housing Industry
Association, Master Builders WA and the Property Council representing
small to large project builders have endorsed our planning reforms because it
is about trying to create the streamlining of approvals. The member for
Cottesloe shows absolute ignorance of current market conditions.
Dr D.J. Honey interjected.
The SPEAKER : Order, please.
You have asked the question. Please continue with your answer, minister.
Mr
J.N. CAREY : Western Australia is
not alone. Every state in the country is facing the same winds when it comes to medium and high-density housing. We have the best policy settings in the
country for planning reform. The member
cannot make comparisons with that timeframe prior to COVID when market
conditions were very different .
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