Skills shortages are holding back overall apartment supply in Perth, with more than a third of approved projects currently on hold.
A study by the Property Council of Australia found that approximately 10,000 apartments were delayed due to a lack of manpower to undertake the work.
In addition, approximately $2.2 billion of apartment projects have yet to gain development approval.
Property Council WA executive director Sandra Brewer said the delay in building approved apartment projects was having a significant impact on affordability.
“Quick action is needed to avert a future housing and affordability crisis,” she said.
Supply constraints pushed the median price within 10 kilometers of Perth CBD to over $1 million.
In addition, the average Perth family now has to save for another two years to cover the rise in property prices in the last 12 months alone.
According to CoreLogic's latest Home Value Index, Perth's median home value rose 0.4% per month and 13.1% per year in December to $528,551.
"Despite positive policy announcements during the pandemic, such as the WA Building Bonus and stamp duty rebates for apartments sold off-plan, years of undersupply and underinvestment have put pressure on house prices," Ms Brewer said.
“As housing becomes more expensive, people move down the ownership ladder, increasing demand for social housing and putting more people at risk of homelessness. »
Ms Brewer said there was a need for policies that could provide long-term solutions for housing supply. These policies should prioritize population growth, address labor shortages, remove barriers to investment, and develop alternative housing models.
"We know that housing affordability is influenced by many interrelated factors that cannot be addressed in isolation," she said.
"Times of rapid economic growth have shown us that fixing housing affordability requires worker-focused policy first – because, without workers, housing markets cannot provide housing that people need."
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Photo by @solimonster on Unsplash.
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