What the Federal Election Means for WA’s Housing Market

Housing affordability and supply constraints have become major topics of discussion across Australia as we head into the 2025 federal election. However, Western Australia (WA) faces a unique set of challenges that need more than just national solutions. These challenges demand localised responses within national frameworks, ensuring WA is not left behind in the delivery of practical housing policies.

While the national focus on housing is commendable, REIWA is urging both major political parties to consider the specific needs of WA’s housing market. The state has been experiencing one of the tightest rental markets, with vacancy rates remaining below 1% for much of the past year, and this is putting immense pressure on both renters and landlords.

National targets such as the goal to build 1.2 million new homes are laudable, but the current government is behind on meeting these targets. For real change to occur, substantial reform is needed to planning systems, land release policies, and the construction workforce. In WA, this means more focus on unlocking land and accelerating planning approvals. It’s not just about promises; it's about delivering real outcomes for WA residents.

REIWA supports many proposals from both major parties that aim to assist first home buyers. However, there’s a cautionary note: policies that boost demand without addressing the supply shortage could push prices even higher. Expanding initiatives like the Home Guarantee Scheme may help buyers enter the market, but unless housing supply is ramped up, it could result in further price inflation, especially in Perth.

A crucial aspect of WA’s housing market stability is the retention of policies like negative gearing and capital gains tax settings. REIWA strongly supports these policies, which help maintain investor confidence and ensure the continued availability of rental properties. In contrast, the Greens’ proposal to abolish negative gearing could have adverse effects on WA’s fragile rental market.

As the federal election draws near, it’s clear that while housing remains a top priority, accountability and the delivery of effective solutions are paramount. WA’s property market needs targeted action that acknowledges its unique challenges.

If you'd like to talk about how this will affect your property plans, don't hesitate to contact the team at Bellcourt on 08 6141 7848.