Under the new budget, first-home buyers will benefit from an exemption on stamp duty for properties valued up to $600,000, an increase from the previous $500,000 threshold. Additionally, concessional rates will now apply to homes priced up to $800,000. These changes are expected to assist approximately 25,000 new buyers over the next four years, facilitating easier entry into the housing market.

The budget also raises the property cap for the $10,000 First Home Owner Grant (FHOG) from $750,000 to $800,000, broadening the range of properties accessible to first-time buyers. For those purchasing vacant land, the stamp duty exemption threshold has been increased from $350,000 to $450,000, with concessional rates extending to blocks valued up to $550,000. These adjustments aim to stimulate the construction of new homes and support the state's growing population.

In addition to tax relief measures, the government has committed $375 million to boost the supply of affordable homes. This investment includes the construction of 500 affordable homes for first-home buyers in targeted growth corridors through the Keystart program. Established in 1989, Keystart offers shared equity home loans to lower entry costs into the housing market and eliminate the need for Lenders' Mortgage Insurance.

Furthermore, a new $250 million Keystart commercial financing facility will provide low-cost finance for developments that incorporate affordable housing. An additional $250 million is allocated to a pre-sale guarantee scheme designed to assist developers in initiating new housing projects.

These measures come in response to a significant rise in property prices across Western Australia. Over the past year, Perth's median home price has increased by 21.5%, with the rest of the state experiencing a 16.3% rise. The budget's initiatives aim to alleviate affordability pressures and support first-home buyers in a competitive market.

For prospective first-home buyers in Western Australia, these reforms present new opportunities to enter the property market. By reducing upfront costs and expanding access to affordable housing, the state government is taking proactive steps to address housing affordability and support residents in achieving homeownership.