New home sales fell 5.2 per cent in WA in June according to new figures from a peak residential body.
Nationally, sales fell to a 17-month low as new land for housing continued to dry up, according to the Housing Industry Association (HIA).
The HIA figures show new home sales fell a seasonally adjusted 5.1 per cent to 7,611 units in June following a 6.4 per cent fall in May.
It was the lowest number of new home sales since January 2009.
Private house sales also fell to a 17-month low, dropping 6.6 per cent in June to 6,847.
Meanwhile, purchases of multi-unit dwellings increased by 10.3 per cent.
Victoria suffered the biggest fall of 10 per cent.
HIA Chief Economist Harley Dale said new home affordability was suffering from high-cost regulation.
"Lack of readily available land and hefty infrastructure charges have combined with a chronic lack of development finance to put the brakes on sales and development activity," Mr Dale said.
"Concerted action is required to reduce the impact of regulation, development charging, and excessive taxation on the cost of new housing supply.
"Inaction means that Australia's dwelling shortage will continue to increase, pushing up existing house prices and disadvantaging households seeking to purchase or rent a dwelling," Mr Dale said.
