First homebuyers in Western Australia accepted more than $213 million in state government grants and stamp duty relief in 2007, a 43 per cent increase on 2006, new Treasury figures show.
First homebuyers in Western Australia accepted more than $213 million in state government grants and stamp duty relief in 2007, a 43 per cent increase on 2006, new Treasury figures show.
Treasurer Eric Ripper, who in the last State Budget announced stamp duty exemptions for first homebuyers purchasing properties up to $500,000, said the increase in assistance had been dramatic.
Mr Ripper said the total package comprised $99.6 million in first home owner grants paid to 14,481 applicants, along with stamp duty exemptions worth $113.8 million on 10,143 transactions.
In 2006, the total package was worth $149.1 million.
"The Government recognises that our rapidly growing economy has seen house prices rise and is committed to helping young people get into a first home," he said.
"This assistance is just a part of our broader plan to reinvest every single cent of the benefits of our growing economy into securing the future for the State and our children."
Responding to the latest data, the Housing Industry Association of WA said the figures were encouraging, but the measures were well overdue.
Executive director Sheryl Chaffer said housing data collected by the HIA showed that at the time the measures were announced by the treasurer, the percentage of first home buyers in the market was at an all time low, making up just 12 per cent of the market.
"Since the package was put in place we have seen a greater number of first home buyers entering the market. The figures show that in November 2007 the percentage of first home buyers in the market was up to 17 per cent,"she said.
"To recoup the lost first home buyers from the market we need to get the proportion of FHB in the market up to around 25 per cent and keep it there for a sustained period...we still have a long way to go."
To adequately house the growing population of WA, Ms Chaffer said it was vital that strategies were targeted at construction of new homes.
Of concern to the HIA is the Australian Beaureu of Statistics finance figures released this week showing financing for the construction and purchase of new homes was continuing to fall.
The HIA estimates that over the entire 2007 year lending for construction dropped by 19 per cent.
"If this trend is allowed to continue the state can expect continued tightening of the rental market adding to the number of West Australians experiencing rental stress. The HIA is very keen to work with the Treasurer in the lead up to this years budget to implement strategies that will continue to provide the stimulus for first home buyers to enter the market and construct new homes," Ms Chaffer said.
Most of the grants in 2007 were used for homes purchased in developing or lower-income areas with the top 20 locations being; Clarkson (302), Ellenbrook (279), Kalgoorlie (277), Thornlie (200), Gosnells (194), Canning Vale (179), Boulder (175), Maylands (174), Tapping (160), Beechboro (145), Butler (141), Secret Harbour (137), Baldivis (137), Seville Grove (137), Geraldton (130), Ballajura (129), Maddington (125), Nollamara (124), Armadale (124) and East Perth (119).
