ACA WA convenes inaugural economic briefing

Claire Harloe & Emma Brain ,

ACA WA hosted its inaugural State of the Nation Economic Briefing on 22 April 2026, bringing together government and industry leaders to unpack the economic forces shaping Western Australia’s built environment. The event, held in the basement bar at His Majesty’s Theatre, drew members from all scales of practice, who stayed on for drinks, snacks and conversation.

Danny Chung, Head of Business Development at Macquarie Group, opened the event with an economic outlook before joining a panel discussion with the Hon. Dr Katrina Stratton MLC, Parliamentary Secretary for Planning, Lands and Housing; Rebecca Justice, Managing Director at Benchmark Finance Group; and Matthew McNeilly, Founder and Managing Director at Sirona Urban. Claire Harloe, ACA WA EO and Emma Brain, ACA National Advocacy Manager, recount their key messages.

Rational optimism

Danny Chung framed the current economic climate through the lens of VUCA – Volatility, Uncertainty, Complexity and Ambiguity – but was quick to temper this with his advice to ‘always be a rational optimist’. On the global stage, he reminded us that Australia remains closely tied to the United States economy (when America sneezes, Australia catches a cold), with inflation and interest rates here inevitably feeling the ripple effects of decisions made in Washington. On the topic of AI disruption, Danny reminded us that pilots have had autopilot for decades, and we still have pilots. AI is a powerful tool that supports professionals, but it is no substitute for the highly skilled, experienced people needed to guide it.

Housing supply and planning reform

Dr Katrina Stratton set a constructive tone, outlining the WA Government’s recent adjustments to housing policy. Fast-tracked approvals for significant projects, changes to the Residential Design Codes, new rules around ancillary dwellings, and a broader push to diversify housing density are now reshaping the landscape for development in WA.

Dr Stratton was clear that what began as emergency measures has become the new normal, with streamlining and improvement now embedded in the government’s approach.

The panel agreed that local government remains a complex partner in this effort. As one industry voice noted, small and avoidable obstacles continue to hold up major projects for surprisingly minor reasons. Dr Stratton acknowledged this, pointing to Minister Carey’s significant planning reforms across eight local government areas and signalling that further step-ups will follow as needed.

Market conditions and construction costs

Matthew McNeilly offered an honest assessment of current market conditions. The shift toward the ‘living sector’, including build-to-rent, has been a defining feature of the post-COVID rethink, with developers moving away from presale requirements to focus on housing supply during this period of acute housing stress. At the same time, construction costs escalated by approximately 30% in nine months, house prices have doubled, and rents have risen by around 50%. While pressure may begin to ease, the panel acknowledged that viability remains a significant challenge, particularly for smaller developers without scale.

Finance, capital and lending

Rebecca Justice provided a nuanced view of the finance landscape, noting that bank expectations are not always aligned with market realities, and the split between margin and line remains a live point of negotiation. Encouragingly, more banks and lenders are partnering up, and there is growing confidence in the residential sector, particularly in WA, where presales carry less weight than on the east coast. That said, land subdivisions, industrial office, and new office without pre-commitments remain challenging. The emerging presence of property lenders moving into the sector, bringing local knowledge and cycle awareness, was noted as a positive development. Traditional and modular construction financing models are also beginning to shift, with Australian banks warming to the security offered by modular builds.

Sprawl, density, and the true cost of infrastructure

One of the most pointed moments in the discussion centred on Perth’s ongoing urban sprawl.

The panel challenged the audience to think more seriously about the true opportunity cost of spreading infrastructure across a low-density city – land, roads, power, and the decades-long financial burden that follows.

The case for densifying around urban villages was made compellingly, with Subiaco’s town centre held up as a success story: once-empty shops now full, a vibrant retail and hospitality precinct, and measurable social and community benefits flowing from increased density around a train station.

The panel called for a more holistic opportunity cost framework – one that accounts for the full cost of servicing greenfield sites before land is released – to create a genuine incentive for dense urban development.

Build-to-rent, intergenerational equity, and public housing

The panel appeared to be deeply interested in the build-to-rent conversation. The intergenerational impact was raised, noting that as capital shifts away from private home ownership, those without property are being denied the wealth growth that previous generations took for granted. Superannuation funds were identified as a natural and largely untapped source of capital for build-to-rent, social and affordable housing, but the right policy settings – including addressing the GST disparity between build-to-rent and other asset classes – are needed to unlock this potential.

On public housing, the panel acknowledged a long gap in serious government investment. The panel called for a bolder conversation about where and how social housing is located. The Fraser Suites adaptation – where short-stay accommodation was converted into social and affordable housing – was highlighted as the kind of innovative thinking the sector needs to embrace more widely.

Social outcomes, cohesion, and the role of design

Dr Stratton brought the conversation back to people, reminding the room that housing is ultimately a social and cultural question, not just an economic one.

She spoke to the loneliness epidemic, the importance of social cohesion, and the responsibilities of leaders, in both government and industry, to deliver outcomes that support diverse and equitable communities. Longer commutes, the desire to age in place, and the very human need to belong to a neighbourhood were all woven into her vision for what good housing policy should achieve.