Thursday 6 July 2023
MEDIA RELEASE
Property industry concerns mount as workforce availability restricts housing supply
Property industry concerns continue to intensify as soaring forward work expectations will struggle to be met with ongoing workforce capacity constraints and demand.
WA is predicted to lead the country with rising forward work expectations of 51 index points, according to the latest ANZ/Property Council quarterly survey. A score of 0 is considered neutral.
Although a robust pipeline of work is usually seen as a positive, ongoing housing constraints continue to challenge delivery, with 49 per cent of respondents seeing housing supply and affordability as the state government’s most critical issue.
Property Council WA Executive Director Sandra Brewer said while the survey pointed to optimism for the future through increased forward work schedules and staffing levels, industry will continue to face hurdles in meeting demand.
“Industry is grappling with well-publicised construction constraints that impede developers’ ability to deliver the housing needed in the state,” Ms Brewer said.
“WA’s construction industry can only deliver so much work at any given time. With state government and resources sector projects absorbing much of the contractor market, the development community is facing challenges to get the skilled workers needed,” she said.
Respondents also predict house capital growth expectations to skyrocket from 17 to 45 index points.
“Such a dramatic projected hike is likely to negatively impact housing affordability and further hinder workers’ ability to find accommodation in WA if it materialises,” Ms Brewer said.
The survey, conducted between 5 and 21 June, also revealed a significant decline in capital growth expectations for the retirement living sector. Over the same period, the state government announced the progression of its Retirement Living reforms, including mandatory exit entitlements.
“The financial implications of these reforms pose a threat to operators, particularly not-for-profits, as some will struggle to fund the ‘buy back’ process. The government’s own modelling predicted a $140m cost to industry,” Ms Brewer said.
“The survey results reflect the Property Council and members’ concerns about the future vitality of the retirement living sector and the potential deterrent effect for investment in retirement villages, resulting in more seniors seeking social housing, or staying in housing that is unsuitable for ageing.
“The Property Council of WA has proposed a compromise to government to ensure residents receive their exit entitlement in a timely manner and the retirement living industry continues to thrive and grow,” she concluded.
Positively, the survey noted increases in retail, hotel, and industrial capital growth expectations.
Media contact: Megan Lack | 0449 252 380 | [email protected]