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WANNEROO is the fastest-growing metropolitan area in WA, according to the Housing Industry of Australia's list of building and population hot spots for 2008/09.

Wanneroo – North-East topped the list, with population growth reaching 8.6 per cent over the year to June 2009 (more than four times the national rate) and the council approving more than $163 million in residential building work during the same period.

Wanneroo – North West was the second-ranked hot spot and had similar population growth and residential building approvals of about $205.49 million.

HIA WA acting executive director David Endersby said Wanneroo had been "fortunate in the game of land supply".

"There's been some good land stock and it's sold really well," he said.

"There are some good transport routes and people want to live there."

Mandurah also performed well, with a population growth rate of 5.1 per cent and $188.5 million in residential building approved.

Port Hedland, where the population grew by 4.9 per cent and just over $138 million in residential building projects was given the go-ahead, was WA's top regional hotspot. This was followed closely by Busselton, which had higher residential building approvals of about $142.6 million, but a lower population growth rate of 4.3 per cent.

The HIA report provides a snapshot of Australia’s fastest growing metropolitan and regional areas in the 2008/09 financial year.

A “hot spot” is defined as a local area where population growth exceeds the national rate and the value of residential building work approved is in excess of $100 million. The report identified 14 hot spots in WA.

Mr Endersby said it was pleasing to see that WA had a double-digit number of local areas qualify as hot spots.

"However, this doesn't mean we can become complacent," he said.

"WA faces a very big challenge in coming years to ensure that the potential for strong building activity, as exemplified by our latest hot spots, can be realised in terms of actual construction in the face of land and labour constraints."

The Barnett Government hopes to reap about $100 million selling dozens of State-owned houses worth more than $1 million each.

So far, it has sold 15 homes for $14.9 million and used $4.3 million of that money to buy 10 cheaper properties.

The Housing Department's general manager of commerce, Paul Whyte, told a parliamentary estimates committee that the State Government had identified 100 houses worth $1 million or more that it would sell off.

"We wait until the properties are vacated before we take action on the properties," he said.

"We may have a large block that has only one dwelling and we will sell that block and use it to fund the acquisition of a two-dwelling site."

All the properties sold for more than $1 million so far have been in the western suburbs, prompting shadow housing minister Mark McGowan to caution that the area did not become "denuded" of public housing.

"Broadly I support the policy but the instigation has been a complete failure because they have sold far more than they have purchased," he said. "In electorates like Mr Barnett's (Cottesloe) there's often social and hospital services that people need to live near, so denuding the suburbs of all Homeswest housing can cause hardships to people who need to access those services."

Housing Minister Bill Marmion told the hearing that properties were evaluated for sale in terms of amenities and services on a case-by-case basis. He said group housing had been constructed on sites where previously there was only a single dwelling.

There are 53,864 people in WA waiting for public housing. The average waiting time is about two years, with some people such as single seniors waiting up to six years.

The Government has brought all the money available from both its own resources and the Commonwealth stimulus package forward to next financial year in order to build about 2000 extra dwellings but that means there is no money allocated beyond 2011-12 for more public housing.

_The West Australian _reported last week that the Government would hand over 559 homes to community service providers but the homes would not necessarily be let to people on the public waiting list.

Renovations would lead Australia’s residential construction industry out of a forecast slump over the next eight years, according to new economic forecasts released in mid-September 2005. However, the short- to medium-term forecast for residential construction is less positive than growth in recent years.

The outlook was released by the Construction Forecasting Council (CFC), which earlier this month delivered its residential sector forecasts for the first time. The forecasts show total residential construction spending growth will drop over the next two years, and recover to less than half of its current growth levels by 2012. However, the short- to medium-term forecast for residential construction is less positive than growth in recent years.

The research was commissioned by the CFC, an initiative of the Australian Construction Industry Forum (ACIF). The Australian Institute of Building (AIB) is an ACIF member.

According to the CFC figures, total residential building spending growth averaged 8.0 percent p.a., in nominal terms, for the past 11 years. Over the next two years that figure will drop to 1.1 percent p.a., rise to average 3.6 percent p.a. over five years and 3.5 percent p.a. over eight years.

The CFC’s forecasts account for construction spending, in dollar terms, calculated quarterly.

The CFC predict, total spending on new houses, apartments and large alterations and additions construction will increase from $36.35 billion for FY 2003-04 to $37.14 billion in FY 2005-06, in nominal terms. It should then rise to $43.44 billion in FY 2008-09 and $47.85 billion in FY 2011-12.

After including small alterations & additions and mobile dwellings - which are included in the ABS National Accounts but not in their Building Activity Series – total residential construction work for FY 2005-06 would be $56.6 billion, and would grow to $74.3 billion in FY 2011-12.

ACIF chairman Neil Marshall said that, when adjusted for inflation, the building activity forecasts showed construction spending would drop to -3.6 percent p.a. over the next two years. Over the next five years growth will average 0.3 percent p.a., leading to overall growth of 0.5 percent p.a. over the eight years to 2012.

“The CFC forecasts lend evidence to the belief that the current slump in construction spending for the apartment market will continue over the short term,” Mr Marshall said. “However, while apartments as a whole will see a downturn, growth in apartment sector sending will outpace new housing spending over the medium to long term.”

Change in residential construction spending, (%) in nominal terms*
Sector	Average p.a. change in construction spending, 11 years to end FY 2003-04	Forecast: average p.a. change in construction spending, FY 2004-06	Forecast: average p.a. change in construction spending, FY 2004-2009	Forecast: average p.a. change in construction spending, FY 2004-2012
New houses	6.3%	2.3%	3.3%	2.9%
New other residential #	11.6%	-2.0%	3.6%	4.1%
Large alterations & additions	9.0%	2.1%	4.7%	4.5%
Total residential building	8.0%	1.1%	3.6%	3.5%

* Nominal terms = does not account for inflation
# ‘New other residential’ includes apartments

The disconnect between numbers of West Australians and new homes has been further emphasised in a new survey.

A report by the Housing Industry Association, a lobby group for home builders, shows that while the state's population grew by 3.2 per cent in the last financial year, the numbers of new homes being approved plunged 14 per cent.

Falls of more than 50 per cent in some areas were not uncommon, with most of the large rises coming in areas with small populations.

However, Port Hedland was a standout performer, with the number of new homes being approved rising 142 per cent, to 295, off the back of a 4.9 per cent population growth.

On the flip side, the number of new homes approved in Claremont fell 86 per cent, to just 32, the largest statistically-significant fall in the state.

While Wanneroo was the only WA area to make a national list of "hotspots" - areas where there was more than $100 million of residential building approved and with a higher-than-average population growth rate - the number of homes approved actually fell 13 per cent on the previous year, while the value of work fell 10.4 per cent.

Top WA home building areas ranked by population growth rates

Area, Residential building approved 2008-09 ($m), population growth rate (per cent), number of new home approvals, percentage change on previous year

• Wanneroo - north east, 163.17, 8.6, 828, -8
• Wanneroo - north west, 205.49, 8.6, 939, -23
• Mandurah, 188.51, 5.1, 683, -50/li>
• Port Hedland, 138, 4.9, 295, 142/li>
• Armadale, 251.95, 4.6, 1253, 22
• Cockburn, 255.13, 4.5, 1044, -20
• Busselton, 142.6, 4.3, 460, -28
• Swan, 241.57, 4.1, 1083, -22
• Rockingham, 242.54, 4.1, 1088, 9
• Gosnells, 172.57, 3.1, 921, 10
• Stirling - coastal, 233.48, 2.7, 513, -20
• Stirling - central, 218.34, 2.6, 827, -25
• Cambridge, 115.8, 2.4, 111, -11
• Canning, 113.4, 2.4, 462, -3

Perth metropolitan area, $3.495 billion, 3.2, 13,733, -14

WA total, $5.043 billion, 3.1, 19,219, -14

The building and construction industry is now showing signs of improvement following a roller-coaster ride experienced in the wake of the global financial crisis, according to the Master Builders Australia’s National Survey of Building and Construction.

Master Builders Australia Chief Economist, Peter Jones, said: “Own-business activity and profits continue to trend up, but remain well short of levels achieved prior to the downturn.”

Mr Jones said, “In the March quarter there was an encouraging pick up in non-residential building as government stimulus programs began to flow through to work on the ground.”

“However, the sharp rebound in builder sentiment through the middle part of 2009 appears to have reached a plateau and forward indicators such as sales, traffic and capacity are not yet pointing to a strong and sustainable recovery in building industry conditions.”

There was little change in builders’ intentions to employ labour, suggesting that workforce levels may remain fairly steady over the next six months, a much better outcome than was expected a year ago in the wake of the global financial crisis.

Pressures related to finding skilled labour rose across all categories in the March quarter as builders once again experience some difficulty finding a range of subcontractors/employees particularly project managers, site managers and foremen/supervisors.

The March quarter survey reveals that the impact of the credit squeeze remains an issue for builders. Although down on recent highs, nearly 30 per cent of respondents reported that the availability of finance was having a large or constraining effect on their business.

Mr Jones said, “Commercial and residential builders still struggling with the effects of the credit crunch now have to factor in higher financing costs.”

“Builders expect further increases in interest rates and the survey index measuring the impact of interest rates on forward orders has risen sharply in the past six months.”

He said, “The timing of the latest rate rise will make it difficult for a private sector housing recovery in circumstances where investor confidence remains weak.”

“The investor-driven component of the new housing market is critical in terms of ensuring an adequate supply of affordable housing that in turn is so important to Australia’s productive capacity.”

“The risk is the Reserve Bank’s interest rate strategy will only exacerbate an already significant under supply of housing and put further pressure on rising rents which feed into consumer price inflation.”

“All levels of government need to urgently confront the chronic housing shortage.”

The Housing Industry Association, Australia’s largest building industry organisation, welcomes the Prime Minister’s announcement of a new office of Minister for Population in the Treasury portfolio.

“The appointment of the Hon. Tony Burke MP as Minister for Population is an important first step in ensuring the development of appropriate plans and strategies to accommodate Australia’s growing population,” said HIA Managing Director, Mr Shane Goodwin.

“It is especially pleasing that one of Minister Burke’s tasks is developing cross government frameworks in consideration of the challenges and opportunities posed by population growth, including the economic and social infrastructure that will be required.

“An integrated approach, inclusive of infrastructure provision, across Federal departments and between levels of government is critical if Australia is to succeed in meeting the many demands, including adequate and affordable shelter, of a growing population,” said Shane Goodwin.

National dwelling commencements rose strongly in the December quarter as the effect of low interest rates and government stimulus measures begins to flow through into the pipeline of work, according to Master Builders Australia, the peak building and construction industry association.

Mr Peter Jones, Master Builders’ Chief Economist said, “Residential building is finally moving into an upturn phase after five years of chronic underbuilding made worse in recent times by the global financial crisis and economic downturn.”

“The predicted bounceback in housing commencements this year will offset a ratchet down in activity that occurred in the wake of the global financial crisis.”

“Beyond that, there are questions over the sustainability of the upturn.”

He said, “Tight lending requirements enforced by the banks are affecting investor-driven unit and apartment builders, as is the fall back associated with the end of the First Home Owner ‘boost’ scheme and speculation about higher interest rates.”

“Master Builders believes the Reserve Bank needs to keep interest rates low to ensure recovery in the interest-rate-sensitive residential building sector becomes entrenched.”

“Australia needs a long and strong housing upturn if it is to overcome the massive shortfall in dwellings that has developed.”

“Governments need to address supply-constraining factors such as developer charges, otherwise the upswing in residential building will fall well short of what’s needed.”

“What’s needed is three or four years building 200,000 plus dwellings per annum to firstly meet ongoing demand from a growing population and to also make inroads into the massive deficit of housing that has already accrued through underbuilding.”

The total number of dwelling units commenced in the December quarter 2009, seasonally adjusted, rose by 15.1 per cent to 40,022 to be up by 26 per cent on the global financial crisis affected December quarter 2008.

The number of private new houses commenced rose by 13.4 per cent to 28,343, up 28.3 per cent from the corresponding quarter a year ago.

Commencements of other dwellings, the category that includes apartments, rose by 18.9 per cent in the December quarter to be up 7.2 per cent through the year.

Home lending for both new and existing dwellings continued to fall in February 2010, raising further question marks over the sustainability of the new home building recovery, said the Housing Industry Association, Australia’s largest building industry organisation.

HIA Chief Economist, Dr Harley Dale, said that the February update for housing finance was very weak and highlighted the risk that the recovery in residential construction activity could begin waning by as early as the middle of this year.

“There remains no evidence that the volume of upgrade owner occupiers and investors entering the new home sector is proving sufficient to offset the removal of stimulus to first time buyers.  While ever this is the case, interest rates should be left on hold.

“The prospects for a second stage new home building recovery from 2010/11 are diminishing amidst rising interest rates, lack of available credit, and persistently high supply side barriers to new housing related to land and labour supply, regulation and taxation, and planning delays.

“Australia faces a housing shortage of nearly 110,000 dwellings. There is a clear risk that this shortage worsens because the housing recovery runs out of steam years ahead of when it needs to. Such an outcome would deliver avoidable upward pressure on rents and on existing home values.

The number of loans for construction fell for a fourth consecutive month in February 2010, down by 3.1 per cent to reach the lowest level since July last year. Loans for the purchase of a new dwelling were effectively flat in February while loans for established dwellings (net of refinancing) dropped by 2.8 per cent to the lowest level since September 2008.

“First home buyer owner occupier loans are, not surprisingly, continuing to decline. At the same time, however, non first home buyer owner occupier loans are losing momentum rapidly and loans for new residential investment are still languishing at near eight year lows,” said Harley Dale.

In seasonally adjusted terms the total number of owner occupier loans fell by 5.2 per cent in New South Wales and was down by 3.5 per cent in Queensland, 8 per cent in South Australia, 5.3 per cent in Tasmania, and 1.4 per cent in the Australian Capital Territory. The total number of loans was flat in the Northern Territory and increased by 1.3 per cent in Victoria.

Perth faces a crippling housing shortage that will leave it tens of thousands of homes short of demand, driving up prices beyond many people, a study has found.

The Housing Industry Association report into WA housing needs to 2020 said there was a Statewide 17,400 shortfall last year, with the shortage to reach more than 70,000 this decade.

Wanneroo Shire is at greatest risk, with a shortage of almost 2000 homes this year, which is expected to blow out to more than 11,000 by 2020.

The HIA said the nation faced a shortfall of 250,000 homes by 2015 and 500,000 by 2020 because of strong population growth and not enough homes being built. The figures are based on population growth and current housing developments in all of the State's 141 council areas.

The report says Perth's growth areas are falling behind demand.

Apart from Wanneroo, it found a 1662 shortfall in Rockingham that would grow to more than 9000 houses by 2020. Other areas facing shortages include South Perth (839 houses), Swan (413 now and 2200 by 2020), Vincent (408) and Canning (384).

"WA is simply not keeping up with the housing demand generated by historically strong natural population growth and net overseas migration," the report said.

It estimated the State needed an extra 283,000 dwellings in the coming decade, 83,000 more than that built in the past 10 years. That equated to about 30,000 homes a year but last year fewer than 17,000 were built.

HIA WA executive director John Dastlik said the shortage not only hurt those trying to find a home in Perth now, but also would price many people out of the market.

"If you're not building enough houses, people have to buy into the established market or keep renting and that just pushes up prices," he said. Mr Dastlik said part of the problem was the long time it took for blocks to gain government approvals. While there might be 70,000 conditional approvals across the city, most were years from final approval.

Master Builders Association housing director Gavan Forster said the industry would struggle to match demand so people would live at home longer or rent with friends.

Catholic Social Justice Council chairman John Hollywood said much of the blame lay with developers sitting on land waiting for prices to rise.

He said council rates on undeveloped blocks were too low and there was little pressure to develop land.

The Housing Industry Association, Australia’s largest building industry organisation, today released its inaugural Housing to 2020 report. The report finds that if current building trends persist, then Australia’s cumulated housing shortage would reach 466,000 dwellings by 2020.

HIA Senior Economist, Mr Ben Phillips said that Housing to 2020, which focuses on future housing demand and the number of dwellings required in meeting this demand, highlights a current housing shortage that already numbers over 109,000 dwellings.

“The reality in many regions and cities in Australia is that affordable, well located land is not available or abundant. Furthermore, planning restrictions, higher taxation on new housing relative to existing dwellings, labour shortages, and onerous regulation biased toward new housing all add to the problem.

“If we don’t get a comprehensive supply response to the accumulating housing shortage then the lack of affordable and appropriately located rental properties will only worsen, while pressures on existing home prices will continue at an undes

“A lack of skilled labour is an emerging threat to the much needed housing supply response. A second round resources boom this decade will draw heavily on an already tight labour market. The $90 billion worth of resource projects on the books is expected to demand an additional 136,000 direct and indirect jobs. This labour will need to be housed, adding additional pressure to the supply of labour and materials in non-resource regions.”

Housing to 2020 provides the first estimates made of Australia’s housing shortage at a Local Government Area (LGA) level.

“The report finds that shortages exist in just under half (295) of the 669 LGA’s across Australia. The majority of the shortages can be found in and around metropolitan Sydney and Brisbane.

“It was also found that many of the LGA’s with the largest housing shortage are also the same regions with the highest level of demand. Again, it’s the growth areas in the greater Sydney area and in South East Queensland where demand will be amongst the highest in the nation.

“The growth areas in and around Melbourne also show high levels of demand.

“Current construction levels in most high demand areas are simply not sufficient to meet the needs of a fast growing population,” said Ben Phillips.

After working in the building industry for more than 10 years, Tristan Kirkham, founder and director of New Home Building Brokers, saw a niche he was well-experienced to fill.

“I saw people time and time again being burnt by the process, paying too much, not understanding the builders obligations or their own obligations and just generally having awful experiences,” he said.

“This experience is what drove me to create New Home Building Brokers. NHBB is a new concept in the building industry designed to take the stress out of home building, renovating and rebuilding.

“Building or renovating is a very significant financial move and we give clients the product knowledge and experience they need to make the best decisions.”

Much like a mortgage broker helps clients find the right loan, NHBB helps clients find the right builder that best suits their needs and budget.

“Our service is designed to find the best deal for the client, not the builder,” Mr Kirkham said.

“Like a mortgage broker, our service is free. Our fees are collected from the commission normally paid to sales representatives working for a builder.

“We sit down with people to determine their needs and wants and using industry-specific software we provide a range of products to suit their requirements.”

NHBB strives to make the building process as transparent as possible for clients.

“For those who don’t have experience in the industry, building can be a very overwhelming and confusing experience,” Mr Kirkham said.

“We understand the process from planning and approvals all the way to handover and by acting on behalf of the client we take the pain and confusion out of the experience.”

Mr Kirkham said having someone on your side to deal directly with the builder is also an added advantage.

“Our experience in the building industry provides us with invaluable knowledge many of our clients don’t have,” he said.

“It is also about peace of mind, clients know all their options, they also know they have someone on their side who isn’t pushing the interests of one certain business.

“Typically those looking to build need to work with sale representatives from a number of builders to get an understanding of how much their build or renovation would cost, with us, there is one contact point, not three agents trying their hardest to secure a commission.”

Mr Kirkham said NHBB will work with clients across a range of price points and situations.

“Clients who really benefit from our services are those who are perhaps working with a challenging block, those who are renovating, those who are rebuilding after a knock down and even clients who are looking to develop a subdividable block,” he said.

“We also find people moving to Perth from different countries benefit greatly from what we do, basically because they have very little background knowledge of the industry and we can deliver that for them.”

Mr Kirkham said the plan was to grow the business so it could provide services across the state, including regional areas.

“We are in the very early stages of the business, but we are confident it is a concept that will be successful on a bigger scale,” he said

Whether it’s a new home, a rebuild or a renovation, building can be an overwhelming experience. It can also be a very costly experience.

New Home Building Brokers is a new concept in the building industry designed to take the stress out of home building, renovating and rebuilding.

Managing director Tristan Kirkham says NHBB gives clients access to product knowledge that can result in big monetary saving

“Much like a mortgage broker we help our clients find the home and builder that suits their needs,” Mr Kirkham said.

“Our service is free to clients, our fees are made from the commission fee already attached to a home in a builder’s standard range of plans, or to the management fee attached to a one-off design. Basically the fees are already included in the new home prices and are normally paid to the builder’s sales representative

“So rather than dealing with sales agents from a number of different builders, we act on your behalf and basically do all the research for you so you can make the best decisions.

“Importantly, our service is designed to find the best deal for the client, not the builder.

“Clients can rest assure that if during the process you come to the conclusion you won’t be building or renovating at all, you will not be forced to pay for our advice.

“Also if it is in your best interests not to proceed with a project we will give you honest advice to that effect, we won’t be working to get you to sign a contract at any cost.”

Mr Kirkham said the NHHB idea was born from the horror stories often coming out of the industry.

“I see people in trouble all the time. They’ve gone into it thinking the process was simple but often found themselves in way over their heads,” Mr Kirkham said.

“There are so many products on the market right now and choosing the right home and builder to suit your needs is not easy for people with no experience in the industry, it can be even more difficult if you’re working with a challenging block.

“The fact is though if you do make the wrong decision or don’t know where to get the right advice you could be paying far more than you really should.”

Mr Kirkham said the first step was always working closely with the client to determine what they needed in a builder.

“We sit down with people to determine their needs and wants and using industry-specific software we provide a range of products to suit their requirements,” he said.

“We also bring more than ten years building industry experience to the equation, so we have the product knowledge but also a full understanding of the entire process from approvals to completion.

“We deal directly with the builder on your behalf and deliver your options in an easy to understand way so you can choose the right builder for you and get the right price.”

Mr Kirkham said the service was suited to those looking to build a new home but also those looking to renovate or knock down a home and rebuild, even those looking to do small developments.

“The number of people buying homes for knockdowns has increased because they want to stay reasonably close to the city. The size of these properties can vary but they are in established suburbs rather than a brand new estate.” he said.

“Also, the economic downturn has driven many to either renovate or extend their homes rather than selling up and moving on, but we’ve found people experiencing severe cost blow outs because they don’t have a full understanding of what is involved.

“Also if you are subdividing land or building units as an investment we can help you ensure you are getting the right price and as a result the best returns on your investment.”

Having worked in the building industry for more than l0 years, Tristan Kirkham has heard his fair share of home-building horror stories. "I see people in trouble all the time" Mr Kirkham said.

"They've gone into it thinking the process was simple but often found themselves in way over their heads. There are so many products on the market right now and choosing the right home and builder to suit your needs is not easy for people with no experience in the industry."

To make the home building process more straightforward - and help people avoid ending up as one of those horror stories - Mr Kirkham has founded New Home Building Brokers.

The company deals with a variety of customers, including people who are looking to build from a standard plan or would like to have plans drawn up, those who have bought a house=and-land package, and even homeowners who, finding the costs associated with their renovations blowing out of control, are seeking independent advice on how to proceed.

Mr Kirkham said that the company did not keep a list of preferred builders, instead preferring to monitor the output of the builders they worked with on an ongoing basis, and was "completely unbiased" when it came to which builder their clients chose.

The service comes without any obligations attached; clients can opt out at any stage without penalty, and is free of charge to clients.

"Our fees are made from the commission already attached to a home in a builder's standard range of plans, or to the management fee attached to a one-off design. Basically, the fees are already included in the new home prices and are normally paid to the builder's sales representatives.

"So rather than dealing with sales agents from a number of builders, we act on your behalfand do all the research for you so you can make the best decisions. Importantly, our service is designed to find the best deal of the client, not the builder.

A NEW home building service has been established to assist clients find the builder most suited to their needs. Working on the same philosophy as a mortgage broker, Tristan Kirkham has created. New Home Building Brokers, after identifying the need for a tailored builder selection service and “Typically, those looking to build need to work with sales representatives from a number of builders to get an understanding of how much their build or renovation would cost,” Mr Kirkham said.

“With us, there is one contact point, not three agents trying to secure a commission.” He said NHBB would work with a range of clients across varying price points and situations. “Our service is designed to find the best deal for the client, not the builder,” Mr Kirkham told WA Business News. “Like a mortgage broker, our service is free. Our fees are collected from the commission normally paid to sales representatives working for a builder.”

Mr Kirkham has more than 10 years’ experience in building and construction, holding a range of high-level, management and sales positions with Lorimer Homes, Residential Attitudes and Exclusive Residence.

“For those who don’t have experience in the industry, building can be a very overwhelming and confusing experience,” Mr Kirkham said Mr Kirkwham said his plan was to grow NHBB to provide its services across the state, including regional area