There may be a silver lining to the well-documented trade and material shortages that have plagued the industry, with construction delays potentially slowing urban sprawl.
According to Realmark North Coastal Sales Associate Dave Seah, Perth has one of the largest urban sprawls in the country.
“On a good day it would take two hours to drive from one end of the Perth metro area to the other,” he said.
“Slowing urban sprawl gives our amenities, transportation infrastructure and planning a chance to catch up.”
And due to building shortages, Mr Seah said builders were delaying further work and suspending developments, slowing urbanization in Perth’s outer suburbs to take advantage of this hidden benefit.
However, UDIA WA CEO Tanya Steinbeck said despite the short-term delays, there would be no long-term impact on the city’s carefully planned urban development, which is set within the framework of the government. of Perth and Peel State @ 3.5 million covering the next 30 years. .
“The current constraints on the building industry due to short-term labor and material shortages will have no long-term implications on Perth’s overall future growth pattern, which has already been planned,” she said.
“Development in new areas has also evolved over the years, with the delivery of well-designed new sustainable homes that are responsive to environmental, social and budgetary factors – the key is to achieve the balance between development infill and new areas for sustainable development and dynamic capital.
“What this is impacting is immediate supply and this is putting pressure on property prices across the board, which is not a good outcome for homebuyers.”
Mr Seah agreed, saying he expected residential housing prices to rise further, with the delays also straining the rental market.
“Rising construction prices and long delays are putting pressure on Western Australia’s tightest rental market, with current vacancy rates at Realmark North Coastal consistently below 2%,” it said. -he declares.
“We usually only have one or two houses available for rent at a time.
“Many customers who would usually rent a home while their home is being built are now finding that they cannot find a rental. Instead, they sell the house they were going to tear down and build, or the block of land, and buy an established house that suits them, or a house they can move into and renovate in the future when the costs of construction and product demand will increase. stabilized”.
According to Ms. Steinbeck, it is important to understand that residential development in new neighborhoods is essential to ensure that the housing supply meets the needs of buyers and remains affordable for a long time.
“Constraints on housing supply, such as construction delays and shortages, are not helpful in ensuring people have an affordable roof over their heads that meets their family’s needs,” he said. she declared.
“Providing sufficient housing to meet current and future needs is essential to the quality of life and affordability of Perth and the regions.
“Buyers can be assured that the development industry is working to ensure that new housing can be delivered efficiently and affordably in the future, to meet continued demand across a range of areas.”
Ms Steinbeck said construction bottlenecks would hopefully be resolved in the coming months as border restrictions eased and capacity constraints could be resolved.