State Budget Delivers On Election Housing Commitments
The 2025-26 State Budget allocated funding for previously announced election promises, including stamp duty concessions for first home buyers, loans for modular housing and shared equity loans.
REIWA President Suzanne Brown welcomed the increase to the thresholds for the First Home Buyer Rate of Duty, but said the Institute would like to see the thresholds pegged to REIWA’s median and lower quartile prices to ensure they better reflect market conditions and ensure the concessions are available to as many first home buyers as possible.
“We have previously suggested the lower threshold, below which no duty is payable, should be pegged to REIWA’s annual lower quartile,” she said.
“The bottom 25 per cent of the market is the appropriate place to allocate the most support as this is the portion of the market where many first home buyers would be aiming to purchase a home. The upper threshold, above which no concession is payable, should be pegged to REIWA’s annual median, which was $780,000 as at the end of May 2025.
“The thresholds should be reviewed regularly to ensure they remain appropriate to the market.
“Similarly, we would like to see the threshold for the $2,000 Home Buyers Assistance Account grant for first home buyers increased and linked to REIWA’s annual median.
“We acknowledge the threshold was increased from $400,000 to $500,000 last December. However so far this year only 8.5 per cent of dwelling sales in Greater Perth were below $500,000* and only 16.5 per cent of those dwellings were houses.
“Linking the threshold to REIWA’s median, as Keystart has done for its eligibility thresholds, would ensure as many first home buyers as possible remain eligible for the grant.”
* Houses and units
“There is a strong need for government investment in policies that will create more rental homes, particularly more affordable and social homes,” Ms Brown said.
“Build-to-rent is an innovative solution that will create more rental supply but the current constraints in the building industry mean these projects are not cost-effective for investors. We commend the government’s support in this space to help deliver these projects.
“We know this investment won’t have an immediate impact on the market, but it is a move in the right direction and will help meet future demand as our population continues to grow.”
“The challenging housing conditions of the past few years have seen WA’s social housing waitlist increase 38 per cent over five years to 20,700, according to the latest BCEC Housing Affordability Report,” Ms Brown said.
“Our members have seen firsthand the toll the rental crisis has taken on the more vulnerable in our society and REIWA’s 2025 State Election platform called for ongoing investment in social housing.
“We have welcomed the government’s delivery of more social housing in the past couple of years, and their continued investment, but we support the call from organisations like Shelter WA and WACOSS for a greater commitment.
“At a minimum, the BCEC report recommended the delivery of 1,200 new or repurposed social housing dwellings per year.”
“The current shortage of GROH has seen government departments look to the private rental market to house staff and this has placed an additional burden on regional rental markets that are already severely challenged,” Ms Brown said.
“We welcome the investment in GROH but note these homes are needed now.
“Potentially the State Government could invest in modular housing itself to provide a solution for the regions more quickly.”
With housing supply continuing to be a key issue for WA, the Budget also provided a range of support for construction.
“We welcome initiatives that may boost housing supply but also acknowledge there are many other factors that can impact the timely delivery of housing,” Ms Brown said.
“While new wastewater plants and power substations are necessary infrastructure to make new land available for residential dwellings, currently issues with land titles are slowing the start of new home construction.
“At the other end of the build process, our colleagues in the building industry tell us energisation is a major issue and can significantly delay the handover of completed homes to clients.
“Meanwhile these clients have to rent longer, which impacts rental supply, or remain in their current home longer before they are able to sell.”
“Rising electricity costs are placing pressure on many household budgets and REIWA welcomes the opportunity for more people, particularly lower-income households, to have affordable access to solar power,” Ms Brown said.
“We also welcome the focus on renewable energy.”
The State Government forecasts Perth’s median house price to increase by 18 per cent in 2024-25, dropping to 4.3 per cent in 2025-26 as population growth slows and new home completions increase.
WA’s population increased 2.4 per cent in the year to December 2024. The government is estimating growth of 1.9 per cent for 2024-25 and 1.8 per cent for 2025-26.
Building completions rose 18 per cent in 2024 to over 20,600, the highest level in seven years.
With housing approvals rising 45 per cent to 23,000, the strongest in the nation, completions are expected to increase further over the coming year.
https://reiwa.com.au/news/state-budget-delivers-on-election-housing-commitments/