FACT SHEET THE WESTERN AUSTRALIAN DEVELOPMENT INDUSTRY. The development industry is the largest employer in Western Australia
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1 FACT SHEET THE WESTERN AUSTRALIAN DEVELOPMENT INDUSTRY The development industry is the largest employer in Western Australia The development industry is vital to Western Australia s economic development and prosperity. The industry represents all sectors involved in the design and construction of our built form environment in both our cities and regional towns. e udia@udiawa.com.au t f w Urban Development Institute of Australia (WA Division) Unit 26, Level 1, 3 Wexford Street Subiaco, WA 6008
2 RESIDENTIAL BUILDINGS Residential construction includes the production of and alteration to houses, townhouses, apartments and all other residential dwellings. The construction of residential dwellings is an important economic contributor in Western Australia. Over the last decade, the private residential construction sector directly contributed to an average 5.1 per cent of the state s economy (as measured by gross state product). The sector provides significant investment in Western Australia, representing an average of 20 per cent of private investment in the state over the last decade. In addition to the construction of new dwellings, the residential construction sector includes the value of alterations and additions (inc. conversions), which has averaged $689m over the last five years. The private residential construction sector in Western Australia, therefore, directly produces goods and services to the value of $6.4 billion per year. Flats/Units Terrace/ Townhouses What we build Apartments $6.4 billion THE VALUE OF RESIDENTIAL CONSTRUCTION IN THE WA ECONOMY New residential buildings, private sector, Western Australia Number of new dwellings constructed (10-year average) Houses Multi-unit dwellings Total 16,940 3,445 20,385 Average value (2012 $) $283,000 $265,000 $280,000 Total value of new dwellings $4,800m $900m $5,700m The majority of new dwellings constructed in Western Australia are detached houses, representing 80 per cent of all new dwellings. Terrace and townhouses make up another 11 per cent of new build, followed by apartments (four storeys and above) and flats/units at six and three per cent, respectively. Apartments are, however, the fastest growing dwelling type in Perth. Between 2001 and 2011, the stock of apartments increased 65 per cent compared to a 22 per cent increase in detached houses. Goldfields Esperance South West Pilbara Great Southern Wheatbelt Mid West Kimberley Gascoyne Where we build Houses PERTH INFILL TARGET The WA State Government s planning document, Directions 2031, outlines an infill target of 47 per cent for Greater Perth. Approximately 37 per cent (or 121,000 dwellings) of new build is anticipated to be accommodated in the central sub region and the remaining 10 per cent (or 33,550 dwellings) distributed across activity centres in outer sub-regions. Greater Perth Infill does not necessarily mean height. Since 2011, more than 30 per cent of dwelling approvals for Perth and Peel have been located in the central sub-region and the majority of these have been detached houses. Sixty-one per cent of new dwellings in the central sub-region have been detached houses and a further 24 per cent were semidetached dwellings or units. Just 15 per cent of dwelling approvals in the central sub-region were apartments. 79 per cent THE PROPORTION OF WESTERN AUSTRALIANS THAT PREFER TO LIVE IN A SEPERATE HOUSE
3 6,240 THE ANNUAL INCREASE IN THE NUMBER OF CHILDREN ATTENDING WA SCHOOLS NON-RESIDENTIAL BUILDINGS Developing community assets goes beyond construction of dwellings; it is also the development of local infrastructure, such as primary and secondary schools, retail and commercial facilities, community buildings and sports facilities. Private sector construction of non-residential buildings directly contributes an average 1.9 per cent to the Western Australian economy. The largest contributor to the sector is industrial buildings (i.e. factories and warehouses) at $1.17 billion per year, followed by commercial buildings ($780m) and retail buildings ($488m). 63 per cent THE PROPORTION OF PERTH RESIDENTS THAT LIVE AND WORK IN THE SAME SUB-REGION NON-RESIDENTIAL BUILDING CONSTRUCTION Education Entertainment / Recreation Other Retail Health COMMUNITY DEVELOPMENT Hotels/ Motels Developing land, buildings and the associated infrastructure is only part of the equation it s also about the creation of sustainable communities. Commercial The development industry spends considerable resources talking to communities, exploring innovative projects and programs to improve the liveability of an area. Industrial Many developers promote social interaction through groups and events (i.e. fairs/markets), develop bike and hike trails, and implement public art programs, amongst others.
4 LAND DEVELOPMENT Land development is the conversion of land for a number of uses; including residential, commercial, retail and industrial. The measurable output of the land development sector is the production of lots for the purpose of sale and/or building property. The majority of land development in Western Australia is for residential purposes, with over 300 residential lots developed each week on average (15,700 per annum). Based on the average residential land price, the value of residential land developed each year is approximately $3.6 billion. 348 THE NUMBER OF LOTS CREATED EACH WEEK IN WA On average, 420 industrial lots, 194 commercial lots and a further 1,800 unclassified lots (i.e. rural residential, multi-purpose, etc.) are developed each year in Western Australia. Not captured in the analysis, however, is the conversion of land for many other urban uses that are integral components of urban development. I.e. Roads and paths; Parking; Public open spaces; Landscaping; and Nature reserves The value of work done, for example, for playing fields, landscaping and park construction (excluding the building component) is significant in Western Australia, averaging $917.2m per annum. $233,000 THE MEDIAN PRICE OF VACANT LAND SOLD IN PERTH IN 2012 WHAT DOES LAND SUPPLY MEAN? The term land supply has various meanings. In the broadest sense, it refers to the amount of broad hectare land, regardless of whether it is zoned or suitable for development. It is also used to refer to the amount of land zoned for urban, industrial or commercial use. Of most importance to buyers of residential land, however, the term land supply means the number of developed and serviced lots that are available to purchase and build on. This can more aptly be described as serviced land supply. It takes several years, on average, for industry to provide the required infrastructure and obtain the necessary development approvals to convert zoned land into serviced residential land.
5 WORKING IN THE DEVELOPMENT INDUSTRY The development industry is the largest employer in Western Australia, directly employing 174,500 FTE workers, or 15.4 per cent of the WA workforce, as of February, The second and third largest employers in WA are mining (9.7 per cent) and health care and social assistance (9.4 per cent). Development industry employment grew just under three times faster than total employment in Western Australia over the last decade. Employment in the development industry increased 95 per cent over the 10 years to 2013, surpassed only by the mining industry (up 219 per cent) and the electricity, gas, water and waste services industry (up 105 per cent). Over this same period, total employment in Western Australia increased by 39 per cent. Information Media and Telecommunications Arts and Recreation Rental, Hiring and Real Estate Electricity, Gas, Water and Waste Financial and Insurance Agriculture, Forestry and Fishing Administrative and Support Wholesale Trade Other Accommodation and Food Professional, Scientific and Technical Transport, Postal and Warehousing Public Administration and Safety Education and Training Manufacturing Retail Trade Health Care and Social Assistance Mining DEVELOPMENT INDUSTRY 0 50, , , ,000 Number of Workers (FTE) 15.4 per cent THE PROPORTION OF THE WA WORKFORCE DIRECTLY WORKING IN THE DEVELOPMENT INDUSTRY 174,500 THE NUMBER OF FULL TIME EQUIVALENT JOBS IN THE WA DEVELOPMENT INDUSTRY PROFESSIONS IN THE DEVELOPMENT INDUSTRY The largest employers in the Western Australian development industry are Architectural, Engineering and Technical, representing 30 per cent of workers in the Development Industry. There are also a number of occupations providing support services for the development industry, but are not included in the aforementioned figures. These include: Residential Heavy and Civil Engineering Structure Land Development and Site Preparation Non- Residential Architectural, Engineering and Technical Sales and marketing; Customer service; Finance; Legal; Market research; and Local, State and Federal Government Other Completion Installation
6 PROFESSIONAL DEVELOPMENT UDIA encourages knowledge and education through conferences, seminars, professional development courses and other events featuring experts and industry leaders ADVOCACY UDIA develops policy priorities, positions and submissions based on indepth research and the views and expertise of its membership. ABOUT UDIA The Urban Development Institute of Australia (WA Division) is the peak membership organisation representing the development industry. The Institute has been representing the development industry in Western Australia for more than 30 years. Our membership is very diverse and is drawn from development, planning, valuation, engineering, environmental, market research and urban design professions. Our membership also includes a number of key state government agencies and local authorities from across Western Australia. Our purpose is to promote excellence and innovation in the creation of sustainable communities for the benefit of all West Australians. THOUGHT LEADERSHIP UDIA regularly publishes research to inform and stimulate discussion about the policies and practices of governments, industry and the community. e udia@udiawa.com.au t f w Urban Development Institute of Australia (WA Division) Unit 26, Level 1, 3 Wexford Street Subiaco, WA 6008
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