WA prop­erty gets more af­ford­able

Comment News (Armadale) - - Front Page -

WA is one of the most af­ford­able places in the coun­try for home­buy­ers and ten­ants, ac­cord­ing to a new re­port.

Only the ACT and NT were more af­ford­able when it came to buy­ing a house, while WA was the most af­ford­able state for ten­ants.

The Real Es­tate In­sti­tute of Aus­tralia and Ade­laide Bank's Hous­ing Af­ford­abil­ity Re­port on the Septem­ber quar­ter 2017 showed af­ford­abil­ity im­proved in WA's sales and rental mar­kets on both a quar­terly and an­nual ba­sis, de­spite wages growth re­main­ing stag­nant.

For ten­ants, the pro­por­tion of house­hold in­come needed to pay rent de­creased from 19.2 per cent in the Septem­ber quar­ter 2016 to 17.4 per cent in the Septem­ber quar­ter 2017.

This was also 0.7 per­cent­age points lower than the June quar­ter 2017 fig­ure.

For home­buy­ers, the pro­por­tion of house­hold in­come re­quired to meet mort­gage re­pay­ments de­clined from 23.6 per­cent in the June quar­ter 2017 to 22.4 per cent and was 1.6 per cent lower per­cent­age points than the Septem­ber quar­ter 2016 fig­ure.

First-home buy­ers were more ac­tive, mak­ing up 36.2 per cent of WA's owner-oc­cu­pier mar­ket.

Their num­ber rose to 4432, an in­crease of 7.4 per cent on the June quar­ter and 17.9 per cent higher than the same time last year.

REIWA pres­i­dent Hay­den Groves said WA home­buy­ers and ten­ants were in a for­tu­nate po­si­tion.

“Whilst the Perth prop­erty mar­ket is show­ing signs of a re­cov­ery in 2018, buy­ers and ten­ants re­main the ben­e­fi­cia­ries of the cur­rent en­vi­ron­ment, with a good sup­ply of hous­ing and rental stock to choose from at the more af­ford­able end of the prop­erty mar­ket,” Mr Groves said.

Me­d­ina was Perth’s most af­ford­able sub­urb with a me­dian price of $240,000.

El­ders South­ern Gate­way li­censee Aaron Baze­ley said the area of­fered ex­cel­lent value.

“For $230,000 to $240,000 you can buy a three-bed­room, one-bath­room house on a 700sq m block that you can move right into with no work re­quired,” he said.

“Prices are even cheaper for homes that need ren­o­vat­ing; I have one listed for $199,000 at the mo­ment.”

Mr Baze­ley said buy­ers were mostly owner-oc­cu­piers, par­tic­u­larly first-home buy­ers and mum-and-dad in­vestors at­tracted by Me­d­ina’s good value and lo­ca­tion, close to the free­way and beach.

“There aren’t many places in Aus­tralia where you can buy a nice home on a 700sq m block just five min­utes from the beach,” he said.

Mr Baze­ley said prop­er­ties priced to sell were sell­ing quite quickly and he had seen a def­i­nite shift in buyer ur­gency and in­quiry in the past three months.

“In­quiries have tre­bled; we’re out show­ing prop­er­ties ev­ery day,” he said.

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