Incentives for infill the key to good growth

Incentives for infill the key to good growthAs West Australians head to the polls on 11 March, the Property Council calls for policies that improve transport connectivity, promote infill and that fuel the state’s ‘growth engine’ says executive director Lino Iacomella.”We face a long, hard slog back after the end of the mining construction boom,” Iacomella says, pointing to the latest ANZ/Property Council Survey, which found industry confidence in WA slumped six points from 104 to 98 in the first quarter of 2017.Iacomella says policy measures that build confidence in the property industry will enable it to drive growth and jobs, and support the state’s evolution.Premier Colin Barnett has already announced a proposal for a $1.85 billion World Trade Centre in Perth’s CBD, as well as a $520 million rail link between the Perth suburbs of Thornlie and Cockburn. Opposition Leader Mark McGowan has promised to create Metronet, a new suburban rail network, Infrastructure WA, and to develop the Ocean Reef Marina.But Iacomella says these commitments just scratch the surface, and the Property Council is looking for the next state government to make large-scale commitments to support infill development and transport infrastructure.”Perth’s inner suburbs are in desperate need of transformation, and the success of urban infill will depend on the next government’s ability to provide frequent and reliable public transport,” Iacomella says.Iacomella says the industry wants to see infrastructure incentives to ensure councils meet their infill targets.”Local governments continue to struggle to hit the state’s infill target of 47 per cent. Despite record-low interest rates and high levels of dwelling approvals, Perth is currently only hitting around 30 per cent infill.”The latest Housing Industry Forecasting Group report highlights a sustained level of building approvals in Perth. However only 28 per cent of these approvals are multi-residential buildings, with much of the approvals being single residential or backyard infill developments.”Unfortunately, this type of development is intensifying the serious problem Perth has with the lack of housing diversity.”The Property Council also wants to see the next state government introduce retirement living housing targets for councils. Official forecasts predict that 22 per cent of Perth and Peel’s population will be aged 65 or over by 2051.Iacomella says the state is currently not equipped to deliver well-located and well-designed retirement communities to house our seniors.”Land use policy is the single most important lever that government has to provide rapid support for the development or redevelopment of retirement villages.”Enshrining retirement living targets in state planning frameworks will encourage councils to identify where the development of modern vertical villages and the redevelopment of existing low density villages can occur.”Beyond the election, Iacomella says the industry will be watching for signs of population growth, and with it a pick-up in demand for housing and commercial spaces.And bright spots are already emerging. The Property Council’s survey found positive growth expectations within the retail sector, which is reinforced by CBRE’s latest research which outlines $2.5 billion worth of construction work is over the next five years. Meanwhile, the Metropolitan Redevelopment Authority has confirmed that three substantial offers for the last lot at Elizabeth Quay will bring projected revenue to more than $300 million – well over the $170 million originally expected.Premier Colin Barnett says the income from Elizabeth Quay is “so far beyond early expectations” and supports “what we have always believed about this project – that it is an iconic asset that would not only change the face of Perth’s waterfront, but also create an enormous economic benefit.” Elizabeth Quay is a “landmark” example of how good development has the potential to deliver jobs, economic opportunity and better places for people, Iacomella adds.”Deloitte Access Economics has forecast the direct economic impact of the Elizabeth Quay development stands in excess of $2.9 billion. More than 6.6 million people have visited the precinct in its first year, and all businesses have reported trade well above their expectations. “Deloitte also forecasts Elizabeth Quay will generate an average 543 jobs across the state each year until at least 2026.”This is what our industry is capable of delivering. And with the correct policy setting in place, we can drive growth and deliver innovations in property developments that create a diverse range of housing and jobs, and make communities sustainable and affordable.”