Report recommends more multi-residential construction in WA

21 December 2018

WA Government: Western Australia's housing construction activity will remain flat in 2018-19, with a subdued recovery expected to continue next year and into 2020-21, a leading industry report has warned.

The Housing Industry Forecasting Group's (HIFG) 2018-19 report was officially released at an industry function today.

The HIFG is a joint industry and government body with a wide range of representatives from organisations including the Real Estate Institute of Western Australia, the Housing Industry Association, the Master Builders Association, the Chamber of Commerce and Industry (WA), the Urban Development Institute of Australia (WA), the Chamber of Minerals and Energy, Curtin University, Property Council, Landgate, Landcorp, the MRA and Bankwest.

The departments of Communities; Planning, Lands and Heritage; the Premier and Cabinet; and Treasury, as well as the Water Corporation are also represented on the HIFG which provides independent assessments and forecasts of WA's housing starts outlook.

According to the HIFG report, the property market has continued its cyclical downswing of the past few years, with 18,000 dwellings forecast for 2018-19. An increase to 19,000 is expected in 2019-20 on the back of a strengthening economy and a further pick-up of 20,000-22,000 in 2020-21.

The HIFG expects that any increase in commencements will be underpinned by demand for multi-residential dwellings as land values increase and the economics of such multi-residential construction becomes more favourable.

Despite lower prices, housing affordability remains a significant issue for WA households on low-to-moderate incomes. For the full report, visit

Comments attributed to Housing Minister Peter Tinley:

"The HIFG's latest report notes that multi-residential dwelling construction is a key part of a recovery in the WA housing market. The report also notes the challenge posed by the lack of diversity in Perth's housing stock.

"The McGowan Government is addressing these issues by using the principle of thoughtful density to deliver infill housing in the right forms and in the right locations.

"The State's METRONET vision will play an important role in promoting appropriate infill and transport-orientated developments as well as driving investment, economic growth and community regeneration across Perth.

"METRONET is the long-term blueprint to connect our suburbs, reduce road congestion and meet Perth's future planning needs. In addition, the recently developed Social and Affordable Housing and Jobs Package will feed into METRONET to deliver 1,390 new homes, including significant social and affordable housing.

"The package aligns with the State Government's Affordable Housing Action Plan to boost housing options for people on low-to-moderate incomes to more than 35,000 by 2020, while generating $2.3 billion in economic activity and almost 6,000 jobs.

"The McGowan Government is determined to see WA prosper - both socially and economically - and looks forward to working with partners in the development sector and other industries to help WA and its people realise their potential."




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