STATE POLITICS
WA set for 1200 new apartments under new plan
The State Government is set to boost housing supply by 1200 apartments through an innovative $250 million program to underwrite new apartment developments.
The move will help developers to meet lending criteria from banks which typically requires them to sell about 50 to 60 per cent of apartments off-the-plan before they can borrow construction finance.
Treasurer Rita Saffioti said the challenge has long been a problem and can significantly delay shovel-ready projects from getting off the ground. She said the requirement sometimes even made projects unviable.
But a new plan to be announced today – called the pre-sale guarantee – will see Keystart provide a guarantee to purchase up to 50 per cent of unsold homes in an apartment development.