Western Australia will now be allowed to conduct open houses and display village inspections after the state government's move to ease the social gathering restrictions.

The relaxed rules that will allow indoor and outdoor gatherings for up 10 people will be allowed for open houses.

The social distancing rules have dampened market activity in the state. According to Housing Industry Association (HIA)'s weekly survey of WA display home traffic, visitor numbers declined by more than 90% from around 2,500 in early March to fewer than 50 over the previous weekend.

"That will translate into a trough in WA's residential building pipeline over the coming 12 months, so we're also working on proposals to support the next stage of economic recovery," said Cath Hart, Western Australian executive director at HIA.

Hart said the move will effectively "reopen the front door" of the state's residential-building sector.

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"The government is aware of our concerns and today's announcement reflects their responsiveness to industry and recognises the important role construction plays in job creation and training for Western Australians," she said.

HIA pledged that it will help ensure guidelines will be enforced to keep consumers and construction workforce safe.

The state government recently unveiled a $154.5m relief package aimed at supporting the construction industry, landlords, and tenants amid the COVID-19 outbreak.

Of the total package, $24.5m will be provided to the construction sector to help the industry maintain a skilled workforce during the COVID-19 pandemic. This includes a $2,000 payment to eligible employers to retain existing apprentices and trainees.