Western Australia Rethinks Urban Density as Population Surpasses 3 Million
Deputy Premier and Treasurer Rita Saffioti delivered a keynote address at a UDIA WA event on Thursday, focusing on rethinking urban density in Western Australia. This comes as the state's population exceeds three million people and continues to grow rapidly, prompting urgent discussions about housing supply and affordability.
Industry Perspective on Housing Choice
From an industry standpoint, delivering diverse housing options is critical to meeting the needs of various households, life stages, and lifestyles. While the traditional single-family home on a green-title block remains an important part of Western Australia's housing stock, increasing medium and high-density housing in appropriate areas is essential.
This shift is vital for enhancing choice and maintaining affordability for new homebuyers and renters across the state. To boost the diversity of housing supply, there is a strong need to support the development of more quality townhomes and apartments in areas well-serviced by essential infrastructure, transport networks, and local amenities.
State Government Initiatives and Policy Changes
As outlined by Ms Saffioti, the State Government has implemented significant policy changes aimed at supporting greater housing choice. Key initiatives include stamp duty exemptions and other forms of support for apartment and townhome purchasers and developers.
The introduction of new Keystart products, such as shared equity options for apartments and townhomes, has been welcomed. Additionally, broadening Keystart's role to facilitate more housing supply represents a proactive step toward addressing market needs.
More recently, the State Government launched 10 new train station precincts, which will undergo improvement plans and schemes. These precincts are designed to drive greater activation and housing supply within an 800-meter radius of identified sites, promoting transit-oriented development.
UDIA WA's Support and Recommendations
UDIA WA has expressed strong support for these government initiatives while identifying further actions to address financial viability challenges faced by developers. In current market conditions, getting medium and high-density projects off the ground can be difficult due to economic pressures.
The association's recent 2026-27 Pre-Budget Submission calls for an extension of the existing Infrastructure Development Fund to help fund essential infrastructure. UDIA WA is also recommending the creation of a Keystart facility for low-interest mezzanine finance loans, which would boost the viability of medium and high-density housing projects.
Community Perception and Future Considerations
While policy and initiatives supporting greater housing choice are critical for increasing supply, community perception regarding the impact of density on neighborhoods is equally important. Apartments can bring much-needed vibrancy and amenities to local areas, enhancing urban living experiences.
It is also crucial to look to the future and consider where younger generations will want to live, as well as the needs of an ageing population. Many older residents require options to downsize within the local areas they know and love, maintaining social connections and community ties.
These considerations are essential for shaping housing options now and well into the future, ensuring Western Australia remains a livable and affordable place for all residents as its population continues to expand.
