There are calls for WA’s auditor-general to investigate the cost to taxpayers of providing infrastructure to support new housing developments in Perth’s outer fringe.
Limnios Property Group managing director James Limnios said with next year’s state election to focus heavily on the housing crisis in WA, it was timely that independent information be sought on the true cost of urban sprawl.
Limnios said other jurisdictions in Australia had undertaken independent reports covering the cost of urban sprawl. The NSW Productivity Commission recently produced a report that found the infrastructure cost of development is up to $75,000 more per home to build in parts of western Sydney, compared to housing in the inner west or CBD.
“Such a study is long overdue in Perth with our city nearly the geographic size of London despite having a population of just over two million,” he said.
“Urban sprawl in Perth is out of control. Even though Perth has a state government infill target of 47 per cent, the latest Urban Growth Monitor shows that net infill rate for the Perth metropolitan and Peel regions was just 31 per cent in 2021 – up marginally from 29 per cent in 2022.”
Limnios said if the current rate of urban sprawl continued, Perth would soon expand to regional settlements such as Bullsbrook and Gingin where new housing developments are already under way.
“At this stage nobody knows the true financial cost to the taxpayers of providing current and future infrastructure to support this urban sprawl, which is unacceptable if we want to have an informed debate about resolving our housing crisis in WA,” he said.
“The huge potential for urban infill to help solve our housing crisis and also save taxpayers billions of dollars in infrastructure costs is underlined by WA Property Council of Australia figures showing that if the Northbridge/West Perth and CBD area alone has the same density as inner-city Melbourne, then more than 57,000 new homes could be delivered in this area.”
“The auditor-general should make the financial cost of urban sprawl report public just before the next state election to ensure MPs and taxpayers can make a real cost comparison between more urban sprawl and the opportunity cost of the upgrading of existing infrastructure, schools and hospitals and roads that could create a similar amount of housing but saving billions of dollars over the long term.”
A state government spokesman said they came to office with a plan to address urban sprawl.
“Our nation-leading planning reforms have also removed significant barriers to the creation of medium and high density housing,” he said.
“We also created other key initiatives to boost urban infill, such as the $80 million infrastructure development fund, which is already supporting development of more than 3300 new apartments.”
Ray White Group chief economist Nerida Conisbee said housing densities in Perth were “extraordinarily low” at 24 per cent apartments whereas in London, Singapore and Hong Kong, more than 80 per cent of homes were apartments or townhouses.
“The uncomfortable reality for many is that we will have to get used to living in much smaller homes to achieve affordability,” she said.
Australian cities have very low densities
Units as a proportion of House and Unit dwelling types (%)
“You can’t create more land in desirable suburbs, but you can build more homes there if you build upwards or build homes closer together.”
WA Greens MLC Brad Pettitt supported calls for WA’s auditor-general to investigate the financial burden of urban sprawl on the taxpayer.
“Perth desperately needs an intervention,” he said.
“WA’s own State Infrastructure Strategy states that the cost of providing infrastructure to greenfield lots is two to four times more than infill development.
“Perth has a massive footprint, the lowest level of tree canopy cover of any capital city and an unhealthy reliance on cars that has been driven by bad policy and property developers for decades. We need an intervention and we need it now.”
The auditor general’s office said it had never conducted such an audit and were unlikely to given its primary mandate to assess efficiency in the public sector and the effectiveness of policy implementation.
Sarah Brookes | WA Today | June 11, 2024
View original article: https://www.watoday.com.au/national/western-australia/out-of-control-calls-to-nail-down-the-true-cost-of-perth-s-urban-sprawl-20240610-p5jkkf.html