Mr Gemmill said the market was ripe for first home buyers but the current $10,000 grant was not enough of an incentive. “What we’re saying to government is let’s pick a target, let’s try and increase the stimulus for first home buyers because they should be coming into the market now,” he said. “You haven’t seen prices like this, the build times are fast and the quality is exceptional because when the market frees up you have an availability of trade and they’re actually getting a better product. “The irony is investors come in now and they start buying and driving the prices up again and the first home buyers miss out.” ABS building approval figures for December 2018 reveal a drop of 17.3 per cent in just one year. Apart from an outlier month in April 2012 dwelling approval numbers haven’t been this low since 2001.

The number of people applying for the grant is also at its lowest level in several years. Mr Gemmill said the state should use some of its projected royalty windfall, expected to come from global supply issues following the Vale Brazilian dam disaster, to boost the grant scheme. ...there is strong evidence [the grant] was not a cost-effective method for stimulating construction of additional homes... Treasurer Ben Wyatt Analysts believe the state government could receive $700 million in extra royalties by the middle of the year. “If you’re talking a royalty increase, which they didn’t budget for, of $700 million dollars, if you peel off an additional $5 million or $10 million to boost that grant, wow, can you imagine what it’s going to do for our economy?” Mr Gemmill said.

“I understand they’re trying to pay down the debt but like any household budgeting, you can’t just clear your debts in a year or in a very short time, you’ve got to spread it around.” Treasurer Ben Wyatt was not receptive to the idea and said any extra money the government received had effectively already been spent on paying down the debt. “While I appreciate Mr Gemmill’s lobbying on behalf of his industry, I note there are plenty of other industries who are looking for the taxpayers to further support their business,” he said. Mr Wyatt was sceptical of the grant’s value and ability to stimulate the sector and said there were a number of far more significant factors impacting the property market in WA and Australia including the banks tightening their lending criteria. “In regards to the WA Government further stimulating the sector by reinstating the FHOG boost, I remain sceptical of any such course of action given lack of impact previous efforts have had and, therefore, the value in the spend of taxpayers’ dollars,” he said.

“When reflecting on the previous First Home Owner Grant boost, there is strong evidence that this was not a cost-effective method for stimulating construction of additional homes and creating additional jobs. Loading “The effective cost of the FHOG boost was around $120,000 for each additional new home built, as a large proportion of the recipients would have purchased a new home even in the absence of the boost. “This expenditure does not represent value for money for the Western Australian taxpayer.” Mr Wyatt said there was more than $24,000 available for first home buyers purchasing a new home valued at $430,000 and the government spent $180 million on incentives in 2017‑18 alone.