REIWA has welcomed the extension of the Short-Term Rental Accommodation (STRA) and Vacant Property Rental (VPR) incentive schemes.
Both schemes were due to end on 30 June 2025 and have been extended until 31 December 2025, or until the funds are exhausted.
“It is very positive to hear over 700 properties have become available as long-term rentals as a result of these schemes, but we need to remember that not all short-term rental properties or vacant properties are suitable to make the transition,” REIWA President Suzanne Brown said.
“This is why we’re pleased the State Government is using incentives, rather than taxes, to encourage property owners to make the change.
“For example, in Victoria, vacant land residential tax is applied to vacant residential properties across the state. This includes land with a home that is being renovated, or a former home has been demolished and a new home is being built, and land with a home on it that is uninhabitable. Victoria’s parliament also passed a 7.5 per cent short stay levy earlier this year.”
The WA STRA provides a $10,000 payment for eligible properties that become long-term rentals. The VPR offers $5,000 to owners who make their vacant property available for rent.
Since being launched in November 2023, the STRA has added 457 new rental properties to the market, while the VPR, which launched in May 2024, has converted an additional 249 properties.
Ms Brown said rental conditions in WA were improving, with supply increasing and the vacancy rate rising, but noted the government needed to maintain an environment that encouraged investment.
“The current recovery of the rental market is due in part to WA providing a legislative environment that supports investment,” she said.
“While our relatively affordable housing and the potential for strong rental yields have played a role in attracting investors, the moderate reforms announced in 2023 have also encouraged investment in WA.
“You can see the results a different approach has taken in other states, such as Victoria, where investors have been leaving the market, despite market conditions being fairly attractive.
“And even though the WA rental market is improving, our government cannot afford to be complacent when it comes to future rental reforms.
“Our population is still growing and rental supply has not returned to the high recorded in February 2021. Investors can and will exit the market if they have concerns about legislation and we could easily find ourselves facing the same challenging conditions experienced over the past few years.”
