WA budget tips modest price recovery for Perth

WA budget tips modest price recovery for Perth
WA budget tips modest price recovery for Perth

The West Australian government is predicting the state's five-year residential property downturn is set to end.

Forecasts in the McGowan government's maiden budget suggest a modest rebound in Perth's median house price in 2018.

The government budget papers tip the median house price to improve 0.7 per cent next year then 1.5 per cent in 2019-20 and 2.7 per cent in 2020-21.

This follows a 1.3 per cent fall during this financial year. 

House prices also fell 2.8 per cent in 2016 and 1.2 per cent in 2015. 

The government blamed the downturn on a housing oversupply between 2013 and 2016.

The government will impose a 4 per cent tax on property purchases by offshore buyers from January 1 2019, which will generate $49 million over the forward estimates. 

Lino Iacomella, Property Council WA Executive Director said the McGowan State government has delivered a fair budget for tough times.

“The decision not to increase key WA property taxes in the 2017/18 budget is welcome and it recognises that the property sector has carried its fair share of the burden in earlier budgets," he said.

“Not increasing key property taxes like land tax and stamp duty will give added confidence to the recovery in WA’s property market.

“The focus on METRONET and infrastructure in the WA Budget is welcome news for the property and construction industry."

 

Tags: 
Budget Housing Market

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