The Real Estate Institute of Western Australia is urging all political parties ahead the state election this year to ensure the formalisation of stamp-duty rebate for off-the-plan purchases.

Damian Collins, president of REIWA, said it is crucial that the 75% rebate become a permanent feature of the state's property tax system to ensure ongoing construction jobs and limit urban sprawl.

"We firmly believe that without this ongoing incentive, the demand for apartments will soften, impacting the steady supply of diverse housing and the creation of jobs for West Australians,” he said.

Without the rebate, off-the-plan buyers pay stamp duty on the combined value of the land and the build, unlike house and land packages which are taxed solely on the value of land.

“This discrepancy puts an unfair financial burden on those looking to buy off-the-plan and forces some people to look elsewhere, in some cases pushing people to buy in Perth’s outer suburbs. This is in direct contradiction to the government's commitment to reducing urban sprawl and promoting infill developments,” Collins said.

The rebate counters this "unfair burden" on off-the-plan buyers, albeit only temporarily as it is set to end in October.

“If our state is going to continue to recover from the economic impacts of COVID-19, we need to ensure apartments remain desirable for buyers so there is a healthy supply of construction projects and jobs available," Collins said.