Western Australia's housing crisis remains a key election battleground, with house prices rising about 22 per cent over the past 12 months and expected to continue climbing next year. The rental vacancy rate is slowly returning to normal, but affordability remains a major concern for many West Australians.
The Labor government has kicked off its re-election campaign with a joint federal-state promise to build 1,800 social and affordable homes. It also expanded eligibility for the KeyStart low-deposit loan program, raising price limits from $650,000 to $730,000, making about 1,200 more homes eligible. Housing Minister John Carey expressed hope the change would help more first home buyers.
The Liberals and Nationals have focused on stamp duty reforms. The Liberals propose lifting first homeowner exemption and concession thresholds by $100,000, saving up to $15,000 in stamp duty for homes under $700,000. They also offer a $20,000 rebate to encourage downsizing. The Nationals would abolish stamp duty entirely for first homebuyers and propose a $1 billion regional headworks fund.
Experts, however, are skeptical. Curtin University housing professor Steven Rowley described stamp duty and KeyStart changes as 'largely cosmetic,' arguing they only bring forward decisions by a year or two. Former REIWA president Joe White said tinkering with stamp duty is insufficient and called for a comprehensive property tax system overhaul.
Both parties have committed to infrastructure funding to boost supply, but Professor Rowley noted that the balance between revenue and costs remains skewed, making only marginal differences. Skills shortages, exacerbated by the mining industry, further complicate housing delivery.
Professor Rowley suggested the government could develop land itself, as its margins are smaller than the private sector. With the private sector delivering 96 per cent of housing, he warned that without addressing supply constraints, making it easier to buy the same stock could worsen the problem.
