This article is from the Australian Property Journal archive
WESTERN Australia’s Cook government has launched an expression of interest campaign for “lazy” government land that is sitting idle and could instead be directed towards boosting housing supply, while the delivery of an additional 1,700 apartments will be facilitated by new investment in its Infrastructure Development Fund.
Expressions of interest will be open for eight weeks, and will include a fast-fail approach to determine whether the land is required for future government use such as future hospitals, schools, roads, utilities or other essential civic infrastructure.
A further assessment will then determine if the land can be developed rapidly for residential purposes, the scope of the proposed development, and the capacity of the proponent to deliver.
Valuations of the land will be undertaken by a panel of independent market valuers to ensure a reasonable price is received by the state. The Cook government said these funds will be reinvested into further housing initiatives.
Land developers will be required to achieve specified delivery milestones to complete the project within an agreed timeframe.
“Our government is unlocking lazy government land through the pilot Housing Diversity Pipeline to maximise the potential of the land for social and affordable housing – including developments in Pier Street and Smith Street,” said Planning and Housing Minister John Carey.
Urban Development Institute of Australia WA CEO Tanya Steinbeck said the expressions of interest phase is a “critical step” in further addressing the state’s housing supply needs.
“On behalf of industry, UDIA WA recommended that providing the opportunity for private developers to identify appropriate Government land for residential development would help facilitate more housing on the ground, faster.
“We are pleased that the State Government has listened to our advice, given that we believe the private sector is best placed to deliver the housing supply we need quickly and efficiently.”
Meanwhile, construction of a further 1,691 new apartments will be supported through Infrastructure Development Fund. Twenty-two new projects across Perth will share in up to $16.91 million from the now-$80 million pool, including in White Gum Valley, Gosnells, Maddington, Subiaco and Woodbridge.
Eleven of these projects will include social housing options as well as specialist disability accommodation.
In response to stakeholder feedback, the Cook government has extended eligibility in the Targeted Apartment Rebate to include NDIS-registered purpose-built specialist disability accommodation.
The $80 million Infrastructure Development Fund provides funding assistance to address up-front costs associated with connecting water, electricity and sewerage infrastructure, which have otherwise constrained development and impacted the viability of infill housing projects.
Since the Fund was launched, 16 supported projects have commenced construction on 1,321 apartments. A further 63 apartment developments are also in the pipeline to receive funds to help industry deliver more than 4,000 additional apartments.
“The effects of the COVID-19 pandemic have deeply impacted the viability and delivery of high-density developments – including supply chain challenges, skilled labour and cost escalations,” Carey said.
“This is why our government continues to invest in a range of reforms to stimulate and support this important part of the housing sector, through our $80 million Infrastructure Development Fund, the pilot Housing Diversity Pipeline and new Keystart loan products.”
