The Real Estate Institute of Western Australia (REIWA) has acknowledged the State Government's significant $4.7 billion investment in housing over the next four years but believes the 2026-27 State Budget does not adequately address issues of affordability and supply in either the sales or rental markets.
Stamp Duty Thresholds Fall Short
The State Government received a $2 billion windfall from stamp duty receipts last year due to bracket creep from rising house prices. While the 2026-27 State Budget has increased stamp duty thresholds for first homebuyers, REIWA argues the increases do not go far enough to compensate for the strong price growth across Western Australia.
For instance, the threshold below which no stamp duty is payable has risen by $100,000 to $600,000. However, this adjustment is already almost redundant. In the year to April, only 11.7 per cent of dwelling sales in Greater Perth were below $600,000. On budget day, May 7, merely 6.5 per cent of active listings for dwellings in Greater Perth were priced under $600,000. Property prices continue to climb, and many first homebuyers will miss out on the full concession.
REIWA has frequently requested that thresholds be linked to its market data so they can move with the market and remain accessible to as many first homebuyers as possible.
Supply Issues Persist
Western Australia has faced housing supply issues for several years, and REIWA has yet to see meaningful improvements from previous budget announcements. The institute believes the problem is not about money but resources. There simply are not enough people in the construction industry or associated fields to deliver on these promises in a timely manner.
This year, the budget allocated more investment to tackle workforce capacity, and REIWA hopes this can help provide more completed homes for the growing population.
Lack of Support for Renters
The 2026-27 State Budget provided nothing substantial for renters other than a ban on no-grounds terminations, which will not boost supply. A $13.5 million commitment to extend the WA Rent Relief Program only supports tenants already in rent arrears and at risk of eviction. Many people will cut back in other areas to avoid falling into arrears, yet no support was provided for them beyond general cost-of-living measures.
REIWA would have liked to see other measures to address affordability, such as a social impact property investment program to increase the supply of affordable rental housing and reduce costs for lower-income households. Under this program, the State Government could provide financial incentives to eligible investors who offer rental homes at below-market rates. Unfortunately, this proposal received no support.
For the full 2026-27 Budget reply, visit reiwa.com.
