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“We know developers are working hard to keep up with demand, but they don’t have enough forward-looking reserves to maintain construction levels at current levels, or to increase construction levels further, which is what the market really needs,” she said.
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Urbis director David Cresp said future trends pointed to more struggles in Perth’s new land market, as well as the apartment market, which has seen little activity in recent years.
“While 2024 will be the highest year for apartment completions in some time, with 2,566 apartments expected to be completed, future supply is much lower,” he said.
“In the first half of 2024, construction started on only 661 apartments in developments of 25 units or more.
By comparison, between 2014 and 2022, construction starts averaged nearly 2,000 apartments per year.”
Crespe said construction costs meant it was only financially viable to build apartments in more upscale areas of the city.
The University of Western Australia’s Housing and Development Institute (UDIA WA) will launch its state election campaign next Friday, outlining a series of priorities for the next state government to work with industry to build more homes, faster.
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