The 2026-27 State Budget, delivered by Treasurer Rita Saffioti on May 7, has placed a much-needed emphasis on investing in housing supply. As part of this year’s budget, a joint investment of $2 billion from the State and Federal Governments was announced, aimed at unlocking thousands of new homes. This initiative has received strong support from the Urban Development Institute of Australia (UDIA) WA.
The new expenditure aligns with several recommendations made by UDIA WA, which have focused on impactful government investment in infrastructure and support for multi-unit developments to boost housing supply and choice. The $2 billion agreement includes a joint investment of $522 million in the Housing Enabling Infrastructure Fund to deliver critical power and water infrastructure in key growth corridors, including East Wanneroo and North Ellenbrook.
This new investment is crucial because a lack of enabling infrastructure has been identified as one of the biggest obstacles to the delivery of new land for residential housing. East Wanneroo and North Ellenbrook were highlighted in UDIA WA’s Perth and Peel Region Growth Corridors Infrastructure Requirements Report, which lists critical enabling infrastructure needed to unlock housing in seven key growth corridors across Perth and Peel. Specifically, the report found that with targeted investment in key enabling infrastructure items, new development in East Wanneroo and North Ellenbrook could potentially unlock close to 70,000 new homes.
Support for Multi-Unit Developments
A $40 million top-up of the Infrastructure Development Fund for medium and high-density apartment projects has also been included, providing headwork cost coverage for eligible infill projects. Given the ongoing challenges in making medium and high-density projects financially viable in the current market, the increased focus on supporting these developments is welcome.
This includes the establishment of a new $250 million First Home Buyer Commercial Financing Facility, to be delivered through Keystart, supporting eligible multi-unit residential projects. This initiative was recommended in a proposal by UDIA WA last year regarding Keystart’s transition to a Government Trading Enterprise. It is a fantastic complement to the previously announced Pre-sale Guarantee scheme to be delivered by Keystart.
These initiatives combined could be a real game changer in bridging the feasibility gap for shovel-ready multi-unit projects, which are desperately needed in Perth and the regions.
First Homebuyer Program
The agreement also includes $375 million for a new state-led program for the construction of up to 500 new homes exclusively for first homebuyers. The program will provide support for first homebuyers to purchase homes through Keystart’s Urban Connect Shared Equity program, with homes being built in areas including Alkimos, Ballajura, Bertram, High Wycombe, Midland, Stratton, Wellard and Yanchep, as well as Geraldton and Bunbury.
All these initiatives combined mean this year’s State Budget will have a material impact on housing supply across the state. Get the latest news from thewest.com.au in your inbox by signing up for our emails.
