This situation is compounded by rising construction costs, which have escalated by 30% nationally and even more in Western Australia due to significant infrastructure spending and competition for labor from the mining sector.

Projected completions for infill developments are also declining, with only about 2,366 apartments expected to be finished this year and just over 600 projected for 2025.

Post-COVID, the cost of delivering apartments in greater Perth has surged beyond market affordability, rendering many projects unfeasible.

Developers are facing construction estimates that are nearly double what similar projects cost five years ago.

As a result, Perth's apartment completions have plummeted to the lowest levels since the 1980s, while completions for house-and-land packages have reached an all-time high.

A recent Property Council report reveals that only 31% of new developments in WA were infill projects in 2022, falling short of the state government's target of 47%.

To meet housing targets established by the National Housing Accord, WA must quintuple its annual apartment completions.

At present, only luxury apartments and low-density greenfield developments are economically viable in the region.

Currently, over 10,000 approved apartment projects in WA are on hold due to financial viability issues.

To address these challenges, recommendations include extending Infrastructure Development Fund rebates, reviewing developer contributions, and making transfer duty concessions for off-the-plan and under-construction projects permanent.

The report highlights that property tax revenue in WA has doubled to $4.5 billion over the past five years, advocating for reinvestment in housing initiatives rather than new government projects.

Currently, apartments make up only 1.1% of homes in Perth, a stark contrast to 3.8% in Melbourne and 6% in Sydney.