HIFG 2017-2018 report finds WA economy is at the beginning of the road to recovery 

The Western Australian economy remains soft however, there are indications that the housing market is showing positive signs of recovery, according to the latest HIFG Forecasting Dwelling Commencements in WA report.

The report found dwelling commencements in WA fell by 23 per cent in 2016-17 to 19,702, slightly above the forecast of 19,000. HIFG forecasts an end to the decline with level of dwelling commencements to be similar to 2016-17 with a slow recovery following 2018-19.

Speaking at the launch, this week, Chair of the Housing Industry Forecasting Group Steven Rowley said there are reasons to believe that we will see an uplift in dwelling commencements.

“An increase in housing finance for new construction, building approvals and a strengthening labour market are key indicators that the economy is at the beginning of a slow recovery,” Mr Rowley said.

“WA remains the State of the first home buyer, making 25 per cent of home buyers which is well above the national average.

“Initiatives like Keystart are tremendously important in allowing people into the market who normally wouldn’t be able to do so.”

However, there needs to be a focus on delivering alternative housing options as large detached houses continue to dominate the WA housing market.

Mr Rowley stressed there is an unmet demand for medium density product and major infrastructure projects, such as the development opportunities around metrohubs, hold the opportunity for industry to deliver a diverse supply of housing options for all ages.

“Major infrastructure projects such as METRONET are essential in delivering alternative housing supply to the market as well as encouraging job growth and attracting critically needed investment into the State,” he said.

The Housing Industry Forecasting Group (HIFG) is a joint industry and government body to provide independent commentary on the housing sector in WA. 

To view the report click here