Treasurer Troy Buswell says the state government will partner with the private sector to develop new subdivision opportunities to avoid a second big spike in Perth land prices.
Treasurer Troy Buswell says the state government will partner with the private sector to develop new subdivision opportunities to avoid a second big spike in Perth land prices.
Mr Buswell met with representatives from the property sector, including the Masters Builders Association and the Urban Development Institute of Australia, this morning, amid concerns that the latest spike in land prices may make Perth the most expensive capital in the country.
"As a result of the meeting, the government has agreed to work with industry to identify a range of subdivisional opportunities that we can fast-track and attempt to bring forward, really to provide an insurance policy to the people of Western Australia, in terms of land supply, to make sure that we don't see the massive spike in house prices that we saw between 2004 and 2006," Mr Buswell said.
"Certainly one of the significant negative outcomes of the last period of sustained economic growth in WA was that land supply evaporated.
"As a result of the land supply evaporating and effectively the former government being asleep at the wheel, prices of houses increased from $260,000 to $460,000 over two years; we can't let that happen again."
"We will now take very firm action and partner with industry in the short- to medium-term to provide the land supply that the industry needs to prevent that happening."
The state opposition says the government's meeting with housing sector representatives may be a little too late to avoid a property boom that could push everyday workers out of the metropolitan area.
"This Government has slashed the number of new blocks coming on to the market and Mr Buswell's actions have made housing less affordable for Western Australian families," Opposition Housing Spokesperson Mark McGowan said.
"Rather than talking about the problems he [Troy Buswell] has created he should be releasing more blocks and making decisions that will help homebuyers access affordable land and housing.
"According to the latest figures Perth is on track to become the most expensive capital city in the country to buy property and that means working families will be priced out of the market."
Yesterday, the Housing Industry Association and RP Data released its residential land report which showed that the median price of land in Perth had risen 4.8 per cent in the June quarter to $227,500.
The rise was substantially higher than the national average of 1.1 per cent to $174,490.
The median house price in Perth is currently at $457,000, according to the Real Estate Institute of WA.
Mr McGowan said today the government needed to make more new blocks of land available immediately to ensure property prices was not beyond the reach of ordinary families when the next mining boom hits.
