The McGowan Government has launched a new $97 million off-the-plan purchase program to support local residential developers in Western Australia. Tenders are now open for medium and high-density residential developments in metropolitan Perth or regional Western Australia which are approved but have not commenced construction.
The program will allow the WA government to purchase up to 20 percent of the overall dwelling yield of a development, helping developers to meet the minimum number of pre-sales required to secure finance for the build. This will in turn kick start more construction projects across the state, creating more job opportunities within the sector.
One clause developers need to consider before tendering is that any pre-sale purchases the government makes can be used for the Department of Communities' housing programs, such as social and affordable housing.
Developers can view the tender documents and lodge a submission via TendersWA (tender number HOU202004740). All development submissions must be lodged by this Friday 3rd July.
Off-the-plan purchase program:
- Medium and high-density residential developments
- Developments must be located in metropolitan Perth or regional Western Australia.
- Developers must have a valid development approval
- Dwellings acquired through this process could be used for social and affordable housing through the Department of Communities' housing programs.
- Developments already under construction or completed are not eligible
- Tender closes on Friday 3rd July, 2020
"I urge developers who meet the requirements to get in quick and lodge a submission before the tender closes on July 3, 2020.
"A thorough evaluation process will confirm that projects are ready for immediate start, provide value for money and are suitable for Government housing programs."
Peter Tinley, WA Housing Minister