Western Australia's peak real estate body says land tax reform would put workers where the money is being made and encourage movement to the regions.

It comes after the New South Wales government announced some first home buyers would be able to choose between paying stamp duty on their properties or an annual land tax from next year.

Real Estate Institute of Western Australia deputy president Joe White said he supported the idea.

"We're delighted to see that the recommendations that the various institutes around the country … have put up are starting to get a little bit of discussion within the political bodies," he said.

Mr White said a land tax would encourage people to take advantage of mining, nursing and teaching opportunities in regional centres without being "fined" by stamp duty every time they moved.

"The whole idea is based on the idea of a mobile labour force," he said.

He said replacing large lump-sum stamp duty with the smaller annual cost would allow workers to move for a short time and worry less about making a financial loss on property.

"It actually encourages movement around the regional centres," he said.

"It also encourages movements to regional centres from metropolitan areas."

He said Geraldton in the Midwest and cities throughout the regions would benefit.

He said places sush as Geraldton attracted people with specialist mining knowledge.

"Invariably they'll move up while a mine is in the construction phase, but they'll only be there for two years," Mr White said.

"A place like Geraldton, the bigger regional centres – Busselton … Hedland, it will encourage people to live in the centre they work rather than just fly-in-fly-out of Perth.

He said Perth would also benefit.

"It'll encourage them to move to a regional centre for a few years and then move back rather than just commute or worse, not take the job at all," he said.

Mr White said the state had a lack of housing development in the regions despite their economic output, which was a "massive failure".

"We don't seem to be able to develop regional towns," he said.

Mr White said it would benefit the broader West Australian population in the long-term.

"The downside is that those that don't move and those with higher value properties will pay more," he said.

"But it's a good idea for Western Australians … the idea is that everyone pays a bit more each year, but you don't get hit with a massive cost every time you move."