A welcome move

State Government moves to speed up major development projects have been met with praise from the residential construction sector, which says the policy changes will meet demands of the modern apartment market and reduce unnecessary expenditure.

The recently announced decision includes the fast-tracking of metropolitan and regional developments worth $20 million and $5 million or more respectively.

Described as a once in a lifetime change to Western Australian planning policy, the reforms are part of the State Government’s COVID-19 recovery initiatives, aimed at kick-starting jobs and economic activity in WA.

Match parent company M/Group Managing Director Lloyd Clark said the government moves would help developers avoid needless spending and give developers a better idea on when their product could be delivered.

He said Perth would largely benefit from increased infrastructure such as apartment complexes, but it could become problematic if developers were not keeping an eye on whether new buildings matched demand levels in the state.

“A more predictable development timeline will assist in the coordination of the supply chain, which involves many small businesses and can have a significant impact when delays occur,” Mr Clark said.

“Ultimately Perth residents will be the ones to benefit from increased infrastructure that does not take years to arrive and new amenity that will result from commercial developments.

“A more streamlined approvals process will certainly introduce a level of diversity into the apartment market, but there is a risk that it could encourage an oversupply of apartments.

“If the market does not respond to an apartment project, the complex might not get off the ground.

“The onus is certainly on the government to manage this process, but it will ultimately be a commercial decision whether the developer decides to proceed or not.

“Apartment buyers still need to remain diligent and do their homework to source credible developers with a track record of works before they put their deposit down.”

Despite a risk of oversupply, Mr Clark agreed the reforms were a welcome change to traditional processes, which involved a lot of time and consultation costs when engaging with local and state governments.

He said it was well known that development projects resulted in positive economic impacts and unlike in other industries, activity in construction led to helpful affects felt across a broad range of indirect businesses.

“The very nature of a development project means that the greatest impact remains local,” Mr Clark said.

“The development sector has historically been the go-to vehicle for government bodies looking to stimulate the economy because no other sector can really deliver the far-reaching benefits.

“The State Government’s planning reforms and response to COVID-19 will provide a great opportunity to upgrade or replace inefficient structures and meet the demand of a new and modern apartment market.

“Perth was relatively late in the game with regards to accepting apartment living as a genuine lifestyle option.

“Older product was therefore built largely for investment with an emphasis on capacity rather than design and functionality.

“Times have changed dramatically since then, and we now have the opportunity to make old buildings more relevant and sustainable, or replace outdated structures with buildings that will enhance the streetscapes.”

The reforms follow three years of consultation on major development projects that were brought forward sooner than planned to better support WA workers struggling in a slumped economy.

The changes include more than 25 amendments to the 2015 Planning and Development regulations, which are designed to remove planning system barriers, provide consistency and clarity for developers navigating the policy, and reduce burden on local governments.