The REIWA says increasing property taxes in the upcoming state budget could jeopardise the 'green shoots' of recovery emerging in the Western Australian housing market.

REIWA President Hayden Groves says even though the WA government is facing another difficult budget, relying on the property industry to prop up state finances will do little to ease the state’s fiscal pressures.

“WA already has one of the highest rates of land tax in the country. Any further increases would deter much-needed investment, driving up rent, and pricing the most vulnerable out of the rental market," he said.

Groves said higher property taxes would threaten the signs of recovery beginning to appear in the WA real estate market.

“We are beginning to see some green shoots of recovery, but increasing taxes could jeopardise WA’s economic bounce back," he said.

The WA budget should introduce reforms that "open doors" for those seeking housing, said Groves.

The REIWA's pre-budget submission proposes the WA government:

• re-introduce the first-home-owner Grant of $3,000 for buyers of established home of less than $430,000,
• introduce a transfer duty concession for seniors ‘right-sizing’, and
• commit to not increasing property taxes, or changing the thresholds for transfer duty or land tax.

“REIWA recommends a report into phasing out transfer duty in favour of a broader-based land tax," said Groves.

“The WA Government should be doing everything it can to ensure access to home ownership is a reality for everyone," he said.

Click here to view the REIWA's pre-budget submission.

Read more about the WA housing market:

Top end of Perth market particularly strong: Lee Riddell, M Residential

The seven Perth suburbs selling more now than during the 2014 boom

Karratha leads property price gains in regional WA, outpacing Perth: REIWA