WA Housing Construction Slumps Further Behind National Targets
Western Australia has experienced a fourth consecutive quarterly decline in home completions, exacerbating challenges in meeting a national housing accord target. The December quarter saw only 4,441 homes completed, marking a significant drop of over 25 percent compared to the same period the previous year and 13.5 percent below the September quarter figures.
Growing Deficit in Housing Accord Goals
Under the national housing accord, WA committed to building 130,000 homes as part of a broader goal to construct 1.2 million homes across Australia by June 2029. Since the accord began in July 2024, the state has completed just over 32,300 homes, falling 6,600 behind its target. At the current rate, projections indicate WA could finish more than 20,000 homes short of its goal, necessitating an average of 6,500 completions per quarter over the next three years to catch up.
Industry Concerns Over Future Outlook
Nicola Brischetto, Executive Director of the Property Council WA, expressed bleak expectations for the coming months. "We anticipate this figure will only get worse," she stated, citing disruptions from fuel issues, chronic labour shortages, and rising material costs. Brischetto noted that hopes for stabilising construction costs have faded rapidly, particularly following the Middle East conflict, which has further strained supply chains.
Mixed Signals from Housing Commencements
Despite the downturn in completions, housing commencements in WA rose to 6,307 in the December quarter, an increase of more than 22 percent over 12 months. Deputy Premier Rita Saffioti highlighted this as evidence of positive industry momentum. "Our commencements have jumped significantly," she said, emphasising ongoing investments in training and programs to support housing as a major priority. Saffioti acknowledged that while recent statistics predate the Iran conflict, the housing sector was on a favourable path beforehand.
Political and Industry Criticism
Shadow Housing Minister Sandra Brewer criticised the Cook Government's performance, stating she has no confidence WA will meet its accord targets. "I have no hope Western Australia will hit any housing accord target because we don't have the right policy settings in place to support supply," Brewer asserted, pointing to the consecutive declines in completions as proof of failure. Master Builders WA Chief Executive Matt Moran echoed concerns, highlighting a critical skills shortage in the residential sector, estimating a need for tens of thousands of additional workers this year alone.
Efforts to Address Labour Shortages
In response to staffing challenges, Summit Homes Group announced plans to employ 100 workers from the Philippines, with another 200 expected over the next year. These hires aim to fill critical roles such as roof plumbers, tilers, and cabinet installers, addressing gaps in the construction workforce. Industry leaders continue to call for supply-side solutions to alleviate pressures, as WA struggles to balance commencements with completions amid ongoing economic and geopolitical uncertainties.
