First homebuyers in Western Australia received 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 homeowner 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.
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 Mr Ripper, the percentage of first homebuyers 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 homebuyers entering the market. The figures show that in November 2007 the percentage of first homebuyers in the market was up to 17 per cent,” she said.
“To recoup the lost first homebuyers from the market, we need to get the proportion of [first] homebuyers 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.
According to Treasury statistics, the greatest number of grants were paid out during July and August 2007, while the suburbs of Clarkson, Ellenbrook, Kalgoorlie, Thornlie and Gosnells were the top five suburbs where the grants were applied.
