Minister wants to flood land market

New Housing Minister Bill Marmion has shocked the property market by saying he wants to flood WA with housing lots to cut home prices.

In a speech to Parliament that has set alarm bells ringing throughout the real estate industry, Mr Marmion said the Barnett Government’s aim was to “bring house prices down”.

“The Department of Land is looking at this issue very closely,” he said.

“It owns land and it is looking at its land stocks and will release as much land as possible.

“That will reduce the pressure on housing supplies. Our aim is to bring the median house price down and to have it lower than the median house price in other States.”

Mr Marmion, who took over the job last month after Troy Buswell was sacked, said the only thing the Government could do to achieve its aim was “release more land and houses”. He refused to elaborate on his comments yesterday.

March quarter figures from RP Data put the median house price in Perth at $480,000, equal to Darwin, but behind Sydney ($500,000) and nation-leading Canberra ($510,800).

Hobart had the cheapest prices in Australia at $323,750.

The State Government established an Office of Land and Housing Supply in Thursday’s Budget and is reviewing available government land which Premier Colin Barnett said would “achieve a comprehensive and co-ordinated approach to housing affordability issues”.

Shadow housing minister Mark McGowan warned the policy could result in houses being worth less than what people paid for them.

“If people go into negative equity with their house, that’s the worst possible outcome,” he said.

Real Estate Institute of WA chief executive Anne Arnold said Australians stored their wealth in the family home and it would be “politically unwise for any government to go down that path”.

But the plan won support from developer Nigel Satterley, who said land needed to become more affordable.

But he said the policy would not cut the price of existing houses.

“We’re on the cusp of a block shortage and whatever the Government can do should be encouraged,” Mr Satterley said.

Analysts at RP Data found in April that houses in Perth’s cheapest suburbs cost at least $60,000 more than those in the most affordable areas in the other major Australian cities.

Hillman was named the cheapest suburb in Perth, with a median house price of $280,000 – higher than the cheapest suburb in Adelaide ($200,000), Brisbane ($205,000), Melbourne ($218,000) and Sydney ($219,000).

Perth had less than 10 per cent of its 259 suburbs with a median house price under $350,000, compared with more than 20 per cent in all other big cities.

Blocks of land in Perth were the most expensive in Australia, according to a recent analysis by RP Data and the Housing Industry Association, with a single square metre of “prime earth” now costing an average of $521.

Source  :  www.thewest.com.au

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Perth to become a waterfront city, says Premier Colin Barnett

PERTH is to become a vibrant waterfront city, says Premier Colin Barnett, who today unveiled plans for a massive redevelopment featuring an inlet connecting the CBD and the river.

Mr Barnett plans to create a vibrant new area for the city and ‘finally’ connect the waterfront to the CBD.

The centrepiece will be a 2.8ha inlet that will bring the river back to near its original shore line. 

The inlet will be surrounded by landscaped terraces, boardwalks and promenades, and fringed by shops, cafes, restaurants, bars and other activities.

 “The Swan River – our greatest natural asset – is effectively cut ff from the city by Riverside Drive and by an expanse of lawn,” said Mr Barnett at today’s unveiling.

“Other major Australian cities have done far more with much less.  This will assist Perth to mature as a vibrant, sophisticated capital city, providing an attraction for locals and tourists.” By removing a section of Riverside Drive, the development encourages the use of public transport, taking advantage of the nearby Esplanade train station, Busport and commuter ferry services. Some changes to existing roads will be made to create more pedestrian-friendly routes.

Mr Barnett was joined by Planning Minister John Day,Tourism Minister Liz Constable and Lord Mayor Lisa Scaffidi at the unveiling.

The development will cover nearly 10ha, focused between Barrack and William streets.

“The development is designed for pedestrians and cyclists – not cars,” said Mr Barnett:.

“It will be an attractive destination for families, young people, city workers, national and international tourists and seniors to gather and enjoy.

“The State Government will take the lead on this development, along with Perth City Council, and we will be looking – indeed asking – the private sector to join with us.  I am also confident the Federal Government will be supportive.”

Mr Barnett said there was significant work to be done on road realignment, drainage and dredging but preliminary works would begin as soon as possible, with major construction starting in 2012.

The plans signal a new era of city building, as a logical and seamless extension of the city.  Together with The Link, major works to the Cultural Precinct and other CBD projects, the city’s axis will be redefined through the strengthening of the Barrack and William streets links.

In addition, Howard Street and Sherwood Court will provide direct links between St George’s Terrace and the waterfront, enhancing the capacity for these laneways to become vibrant places with shops, cafes and small bars.

The inlet, designed to reflect the historical characteristics of Perth Port, will have room for public boat mooring facilities.

At the heart of the new inlet will be an island, a landscaped parkland offering a unique experience for visitors. This family-focused destination will provide opportunities for relaxation in sheltered open spaces with 360 degree views of the surrounding city.  It may also include a safe, child-friendly beach and swimming areas.

Land at the foot of William Street has been preserved for a significant public building.  The Government’s preference is that this building be a national centre for indigenous art and culture, providing a major focus for the project.

Event spaces will be dotted throughout the waterfront, including a public square next to the Esplanade train station, the promenade, the island and a new road which can be closed to accommodate events.  Larger events will be held at the Supreme Court Gardens, which will be improved under the plan.

 There is also the potential to include a swimming pool, which could be an attractive recreational asset for city workers.

Full details of the Perth Waterfront concept plan can be found on the PlanningWA website at http://www.planning.wa.gov.au/waterfront 

Source  :  www.news.com.au

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