Defence Housing Australia has unveiled ambitious plans to dramatically expand its property holdings in the Rockingham area, targeting a near-doubling of its current housing portfolio to support Australian Defence Force personnel and their families.
Major Expansion for Defence Housing
James Wallace, Head of Commercial at Defence Housing Australia (DHA), revealed the agency intends to add approximately 200 homes to its Rockingham portfolio each year. This aggressive expansion strategy will see DHA's current stock of 670 homes in the precinct grow by about 1000 properties over the coming five years.
Speaking at a Property Council event, Wallace emphasized that housing availability is crucial for defence operations. "Without housing, the defence members can't come and live in the location to do the job that they need to do, so it's pretty critical," he told industry representatives. "DHA - we sort of see ourselves as a part of defence capability."
Strategic Location and Housing Diversity
The expansion will focus on properties within 30 kilometres of the main Navy base entry at Point Peron, with potential development also considered for the Henderson area. In a significant shift from traditional housing models, DHA is moving beyond detached houses to include townhouses and apartments in its portfolio.
Wallace confirmed the agency is actively working with three or four suppliers on sites throughout Rockingham to develop approximately 400 apartments over the next four to five years. This diversification comes as construction costs present challenges across Western Australia and the broader national market.
"What we've been really focused on in the last probably six months is growing the townhouse portfolio and really trying to look at the apartment space," Wallace explained. "Build costs are significantly higher than what you can actually sell it for, so that makes it really difficult."
Economic Impact and Community Benefits
The housing expansion is expected to generate substantial economic benefits for the Rockingham community. The Property Council event heard that every defence position creates an additional 1.7 jobs in the local economy.
Rockingham Mayor Lorna Buchan highlighted the compounding effect of this growth, noting "every new sailor that comes in with their family, we're also creating another 1.7 jobs. So the pressure there is immense."
DHA's property model relies heavily on private investment, with approximately 80 percent of its portfolio leased through investors. These arrangements typically involve six-year leases with extension options, providing stable returns for property owners while meeting defence housing needs.
Despite acknowledged challenges in the housing and infrastructure markets, DHA remains confident in achieving its expansion targets, ensuring defence personnel have appropriate accommodation to support Australia's naval operations in Western Australia.
