REIWA president Damian Collins said concern around the decline of sales activity in Western Australia was the motivation for the organisation to put forward their six-point plan. 

Over the last 13 years, sales have gone from 89,000 in 2005 to less than 39,000 in 2018, giving what the institute believes is a clear sign that the property industry needed stimulus to attract buyers and investors back into the market. 

Mr Collins said the Western Australian property market was an integral part of the WA economy which provides housing and a regular source of income for the state. 

“REIWA’s six-point plan outlines recommendations that we believe will help boost the economy and enable more people to enter the property market,” said Mr Collins. 

The plan includes:
•    Increase the stamp duty exempt threshold for first home buyers 
•    Re-introduce the $7,000 FHOG for established properties
•    Introduce a $10,000 concession on stamp duty for seniors
•    Remove the stamp duty penalty for off-the-plan purchases
•    Revoke the foreign owner duty surcharge
•    Conduct a state tax review 

In 2018, the number of first home buyers reached its lowest levels since 2011, with 8,511 purchasing established properties and 6,246 purchasing new homes. 

“By re-introducing the $7,000 first home owner’s grant (FHOG) for the purchase of existing dwellings, all West Australians will get a helping hand into their first home, regardless of what they choose to buy,” said Mr Collins. 

Mr Collins also believed introducing a $10,000 concession on stamp duty for seniors would help those over 65 years to ‘right size’ their properties. 

“In addition, REIWA calls for an off-the-plan concession to allow stamp duty to only be payable on the land component alone, which brings it in line with current house and land purchases, reduces urban sprawl and promotes infill developments,” said Mr Collins. 

Currently, the WA property market attracts the lowest number of foreign investors of any state and is second only to the Northern Territory nationally. 

“Foreign investors play a key role in the delivery of off-the-plan projects which creates construction jobs for thousands of West Aussies, which is why REIWA recommends that the seven per cent foreign owner duty surcharge be revoked to keep the WA property market competitive,” said Mr Collins. 

Finally, Mr Collins said REIWA’s outlook for 2019 indicates the market will remain soft well into 2020 which is why it is calling for the State Government to undertake a state tax review. 

“It is important to our economy that the government assesses the viability and financial implications of shifting to a broad-based land tax system that ultimately removes stamp duty.”

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