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WA State Budget 2025–26: Major Boost for Housing Affordability, Supply and Innovation

30 June 2025

WA State Budget 2025–26: Major Boost for Housing Affordability, Supply and Innovation

The 2025–26 Western Australian State Budget delivers a robust package aimed at tackling the housing affordability crisis, boosting construction, and supporting first home buyers across the state. As Perth’s median house price is forecast to increase by 18% in 2024–25, these investments are timely and critical.

The Real Estate Institute of Western Australia (REIWA) has welcomed the housing-focused measures but emphasised the need for continued alignment of grants and concessions with real-time market conditions.

Supporting First Home Buyers

A total of $119 million has been allocated to reduce stamp duty for first home buyers, making entry into the property market more achievable. Additionally, $210 million will fund new Keystart initiatives, including:

  • Loans tailored for modular homes, apprentices, and graduates.

  • 1,000 shared equity loans for the purchase of new apartments and townhouses.

REIWA continues to advocate for eligibility thresholds to reflect actual market data. With Perth’s median house price now at $780,000 (as of May 2025), only 8.5% of sales fall below the $500,000 mark—highlighting a disconnect between policy thresholds and market realities.

Rental Market & Build-to-Rent

In response to ongoing rental pressures, the WA Rent Relief Program has been extended until 31 December 2025. A $75 million Build-to-Rent Kickstart Fund has also been announced to stimulate purpose-built rental developments and expand long-term rental options.

Expanding Social and Community Housing

To address WA’s growing social housing waitlist—which has risen 38% over five years to 20,700 people—the State Budget commits:

  • $246 million (co-funded with the Federal Government) to build 548 new social and affordable homes.

  • $177.4 million for the maintenance and upgrade of existing social housing stock.

Regional Housing Investment

Regional WA is set to benefit from:

  • $104 million to double the delivery of Government Regional Officer Housing, aiming to construct over 100 homes between 2026–27 and 2028–29.

  • $25 million for the Regional Housing Support Fund, providing grants of up to $5 million to stimulate housing initiatives.

  • $43 million for the development of 169 new residential lots in Mulataga, Karratha, part-funded by the Federal Government.

Boosting Housing Supply & Construction Capacity

To accelerate development and ease supply bottlenecks:

  • $101 million (as part of a larger $400 million fund) will be invested in 21 enabling infrastructure projects to unlock 33,000 new housing lots.

  • $49 million will be directed toward growing the construction workforce, with:

    • Wage subsidies for 1,000 apprentices via Group Training Organisations.

    • Free TAFE courses in construction-related trades.

  • A $50 million Housing Innovation Fund will promote the use of alternative materials and methods to speed up the building process.

Sustainability & Energy Efficiency

A significant $337 million Residential Battery Scheme has been announced to help 100,000 households reduce energy costs and emissions. The scheme includes no-interest loans for households earning under $210,000 to adopt solar energy storage.

What This Means for Buyers, Sellers and Investors

With billions flowing into affordability initiatives, infrastructure, and sustainability, WA’s property landscape is rapidly evolving. For buyers, this could mean new opportunities through reduced upfront costs and innovative finance options. For investors and developers, the focus on build-to-rent and land release opens up new avenues for growth.

Ready to Make Your Move?

At Limnios Property Group, we help clients navigate every shift in the market — from first home buying to strategic investing. Whether you’re looking to buy, sell, or develop, our team offers tailored advice backed by decades of experience in Perth real estate.

Call us on 08 9328 3866
Email us at limnios@limnios.com

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