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It’s business as usual for Western Australia after the 2018 budget didn’t introduce any initiatives to address housing affordability or reinvigorate the market.
REIWA president Hayden Groves welcomed the Western Australia government’s decision to not raise property taxes but was disappointed in the otherwise mundane budget.
“The McGowan government ha[s] missed an opportunity to introduce measures that open doors in the property market for those that need it most,” Mr Groves said.
Mr Groves said that it was disappointing that certain measures hadn’t been changed to allow for more people to participate in the real estate market.
“We are particularly disappointed that the First Home Owner Grant remains unfairly skewed towards new-build properties and that there is no transfer duty concession for seniors to enable them to ‘right size’ into more suitable accommodation,” Mr Groves said.
WA Treasurer Ben Wyatt confirmed that the government would proceed with an election promise to introduce a new residential property tax for foreign buyers.
The tax, which comes into effect in January 2019, has increased to 7 per cent from the initial proposal of 4 per cent.
Mr Groves slammed the move and said that it would have far-reaching consequences for the still recovering WA property market.
“This will deter much-needed investment in the state while doing nothing to make housing more affordable for West Australians; in face rent prices could increase due to a lack of stock as investors look elsewhere,” Mr Groves said.
Mr Groves added that the measure could even put the construction industry at risk as it relies on foreign investments.
“This policy measure also puts construction jobs at risk, as off-the-plan developments usually rely on securing a porting of pre-sales from foreign investors before funding can be secured,” the REIWA president said.
Mr Groves said that losing foreign investments could result in many projects never eventuating, which would affect the economy.
“The short-term financial gain of this surcharge is likely to be counteracted by long-term losses as investors seek an alternative place to invest,” the president said.
Mr Groves said that the REIWA would continue to call for introduction of initiatives that would make the housing market accessible for all West Australians.
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