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A recent survey by the Real Estate Institute of Western Australia (REIWA) pointed out the difficulties around paying stamp duty in WA, particularly for first home buyers and downsizers.
Out of nearly 15,000 responses to the institute’s Housing Issues Survey, more than 60 per cent of participants stated that stamp duty was a key obstacle to home ownership in Western Australia.
Currently, in Western Australia, first home buyers are exempted from transfer duty on homes valued up to $450,000, and are subject to concessional rates for homes valued up to $600,000.
REIWA CEO Cath Hart said the current amount subjected to either stamp duty exemption or conception have fallen out of step with Perth’s property prices.
“As we know, strong population growth and low building completions have seen the WA property market experience sustained price growth over recent years, with Perth’s median property price increasing by 23.3 per cent to $740,000 in the year to December 2024,” Hart said.
Hart cited ANZ estimates showing that the time required to save a deposit has increased to almost 10 years, with the cost of stamp duty adding an extra consequent challenge for first home buyers.
“This aligns with the survey results which showed nearly half of the respondents said they were supportive of raising the First Home Owner Rate of Duty to reflect higher property prices; 25 per cent were natural, with 28 per cent not in favour,” Hart said.
The survey also showed that stamp duty poses a barrier for downsizers, with 63 per cent of respondents viewing it as a significant obstacle and 71 per cent favouring a stamp duty concession to help people downsize.
Downsizers who wish to move would have to pay thousands of dollars upfront in stamp duty costs which is often a deterrent, with the only other alternative for owners to stay in their current home.
“This has a significant impact on housing supply. Many potential downsizers are living in family-sized homes that are simply too big for their needs, and it’s these types of homes that are very sought-after by buyers,” she said.
Ahead of the upcoming Western Australian state election, Hart said the survey results support REIWA’s 2025 election platform.
The REIWA platform aims to ensure first home buyer and home buyer assistance concessions are pegged to median prices, and downsizers are provided with stamp duty concessions to encourage mobility within the market.
“Housing is clearly a key priority for the WA community in the upcoming election and we are pleased to see the strong focus on housing from the various political parties,” she concluded.
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