Labor\u2019s Budget tax grab was forecast to add only $2 per week to rent, but new analysis shows Perth house rents have risen by $22.50 per week since it was handed down.<\/p>\n
Research from the Real Estate Institute of WA shows a 3 per cent boost in Perth house rents in the three months to July, compared to the previous quarter, taking the median to $750 a week.<\/p>\n
Analysis by The West Australian shows that of the 125 Perth suburbs with house rents between $650 to $850 a week, twice as many suburbs have seen rental increases since May, when the Budget took place, than a decrease.<\/p>\n
The rental affordability crisis has left Treasurer Jim Chalmers fighting criticism over Labor\u2019s decision to axe negative gearing and capital gains tax.<\/p>\n
But he stood by Treasury modelling that it would add only $2 a week to median rents as some landlords seek to cover higher costs following the tax changes.<\/p>\n
REIWA president Suzanne Brown said she was concerned about the impact of the tax changes on the investment market, though it was too early to tell how much it had added to rents. She said rents are affected by several factors, including population and supply.<\/p>\n
\u201cThe greatest threat to prices will be the effect the taxation changes may have on supply,\u201d she said.<\/p>\n
\u201cSince the Budget we have seen a strong decline in investor-purchasing activity \u2014 particularly for established homes.\u201d<\/p>\n
Ms Brown said tax incentives for investment in the newly-built market may boost supply in the long term but will not help the current crisis. Rental supply is still below the peak recorded in February 2021.<\/p>\n
\u201cIf supply remains static \u2014 or worse \u2014 declines again, we will see increased upward pressure on rent prices and a further decline in affordability,\u201d she said.<\/p>\n
Analysis by The West Australian show there were 76 suburbs where median house rents increased over the three months to July, compared to the previous period. Rents dropped in 38 suburbs, while 14 suburbs saw no change at all. The median is up 10 per cent over the year.<\/p>\n
Greater Perth\u2019s unit market did not change from the $700 weekly median.<\/p>\n
Housing Minister Clare O\u2019Neill was among a cadre of frontbenchers deployed in a media blitz last week to help Labor defend the measures, highlighting the focus on building supply.<\/p>\n
\u201cFor a generation, we simply have not been building enough homes, but we\u2019re turning that around with a $47 billion national housing agenda,\u2019 she said. \u201cSo far, we\u2019ve funded 4200 new social and affordable homes across Western Australia.<\/p>\n
\u201cRenters are doing it really tough, which is why we\u2019re continuing to work very closely with the Cook Labor Government to build more homes and get renters a better deal.<\/p>\n
\u201cWe\u2019re really focused on getting more people out of rentals and into their own home, and so far the Albanese Government has helped more than 31,000 West Australians buy their first home.\u201d<\/p>\n