Apartments to gain from $80m fund

A dozen apartment projects are set to get a boost from the state government’s $80 million infrastructure fund, with initial recipients of the fund’s apartment rebate announced.

Developers will share a pool of $6.53 million to fund project headworks, which consist of the work carried out by utility providers Western Power and Watercorp.

Projects to benefit from the funding are at various stages of development and include ADC_’s $40 million six-storey apartment building in McCabe Street, North Fremantle.

The 46-dwelling development, dubbed Freeman Residences, commenced construction last month.

ADC_ executive director Adam Zorzi told Business News given the challenges the market faced, initiatives such as this were welcomed.

“Facing all the cost challenges that all residential projects are facing at the moment, this grant was certainly a very welcome piece of assistance to try and make these projects more viable,” he said.

“We’ve seen construction costs go up north of 40 per cent in the last two years and we haven’t seen that level of price growth in the apartment space.

“It’s a bit of a balancing act with all these apartments at the moment.”

A high proportion of apartment developments in Perth have been put on hold, due to escalating construction costs, labour shortages and supply chain issues.

The government’s $80 million headworks fund was established to help offset some of the upfront costs associated with building an apartment complex, including water, electricity and sewerage.

Projects in Burswood, Cannington, Como, Maylands, Mount Pleasant, Nedlands, North Fremantle, West Leederville, West Perth and Woodlands are among the recipients of the first round.

It is understood the funding will also assist Saracen Properties’ $160 million apartment and retail project on Eighth Avenue in Maylands.

A total of 653 dwellings will be subsidised through the funding.  

Planning minister John Carey said the government was doing everything it could to support infill development across Perth.

He said the $80 million funding allocation would be distributed equally between metropolitan and regional projects.

Property Council of Australia WA Division executive director Sandra Brewer said the grants were welcome “at a time when developers are facing immense challenges delivering new homes due to rising interest rates and well-publicised construction constraints.”

“Funding for headworks was strongly advocated for by the Property Council, and the $6.53 million allocated today will go some way in boosting the feasibility of construction sites across Perth,” she said. 

“The Property Council is hopeful this will result in an increase in apartment commencements to meet the critical demand for more housing in Western Australia.”