Supply and affordability measures outlined in state's 2022-23 budget
The Real Estate Institute of Western Australia has lauded the housing supply and affordability measures outlined by the Western Australia government in last week’s 2022-23 budget announcement.
The state’s 2022-23 budget revealed a budget surplus of $5.7 billion for this financial year and a surplus of $1.6 billion for next year.
REIWA president Damian Collins said the positive outlook for the WA economy meant that the strong cycle for the state’s housing market would continue.
“Today’s budget forecasts ongoing growth and strength in the WA economy as we continue to adjust to post-pandemic life,” Collins said. “We expect that this strength and the forecast 1.2% increase in population will continue to underpin further growth of WA’s residential sales market. As such, we are maintaining our forecast of 10% price growth for WA’s residential property market for this calendar year.”
Collins said the budget “also acknowledged the critical role of incentivising the private sector to deliver additional housing supply, both through new construction and innovative investment models.”
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Measures announced in the budget included expanding the Off-the-Plan Rebate Scheme and Keystart loan program and incentivising the construction of build-to-rent properties.
Collins said that REIWA looked forward to working with the WA government to develop the details of the plans to address supply shortages.
“Our data clearly supports the premier’s view that housing supply is tight,” he said. “Sales activity remains at our best levels since 2014, while listings for sale have dropped to their lowest levels in over a decade. The rental shortage also remains a significant challenge for WA, with vacancy rates across the state at or near record lows. The measures announced today will help. However, we expect it will take some time to work through the supply challenges the WA market faces.”
