PASS­ING YEARS ARE AC­COUNTED FOR IN DOL­LARS AND CENTS

Southern Gazette (South Perth) - - Residential -

83rd po­si­tion out of about 280 sub­urbs.

At $290,000, Me­d­ina has the low­est me­dian to­day.

“It’s in­ter­est­ing to note that the rel­a­tive prices of Dalkeith and Red­cliffe to each other has not changed sig­nif­i­cantly,” Mr Collins said. “In 1985, the me­dian price in

Dalkeith was ap­prox­i­mate- ly 4.5 times the price of Red­cliffe and now it is 4.9 times.

“Both sub­urbs have been strong per­form­ers.”

If you were rent­ing in 1985, you might re­call pay­ing around $89 per week, which was the me­dian house rent at a time when the va­cancy rate was a low 2.4 per cent.

Look­ing back at the land mar­ket, prop­erty devel­oper Nigel Sat­ter­ley – who founded Sat­ter­ley Prop­erty Group in 1980 – said the most com­monly sold residential lots in the metro area mea­sured about 700sq m and cost from $19,500$29,500.

Over at Sum­mit Homes Group, the York de­sign was so pop­u­lar that the long­stand­ing qual­ity builder was com­plet­ing street af­ter street of the three­bed­room, one-bath- room $24,000.

Mr Collins said new con­struc­tion was the prom­i­nent in­vest­ment choice 30 years ago, com­pris­ing about 60 per cent of in­vest­ment loans com­pared to just 7 per cent to­day, ac­cord­ing to ABS fig­ures.

He said the num­ber of ac­tive prop­erty in­vestors in the mar­ket had dou­bled in this time, with RBA data re­veal­ing in­vestors ac­counted for about 30 per cent of fi­nance loans in the past year but only about 15 per cent in 1985.

While there were nu­mer­ous rea­sons for the rise in in­vestor ac­tiv­ity over the three decades, one of the more in­ter­est­ing was the ac­ces­si­bil­ity of in­for­ma­tion with the ad­vent of the in­ter­net.

“Web­sites such as reiwa. com.au have al­lowed the gen­eral public to gain ac­cess to much more in­stan­ta­neous in­for­ma­tion re­lated to the prop­erty mar­ket and prop­erty list­ings,” Mr Collins ex­plained.

“Fur­ther­more, for the decade be­tween 1985 and 1995, in­ter­est rates av­er­aged 11.4 per cent com­pared to 5.3 per cent in the decade be­tween 2000 and 2010. This is also sig­nif­i­cantly more than the

lay­out

priced

around cur­rent record-low in­ter­est rate en­vi­ron­ment we are in to­day.”

He said 1985 was the year that the Hawke gov­ern­ment abol­ished neg­a­tive gear­ing – a hot topic of con­ver­sa­tion to­day, with some com­men­ta­tors call­ing for the tax pro­vi­sion to be scrapped again.

“The de­ci­sion by the Hawke gov­ern­ment to end neg­a­tive gear­ing lasted only three years, though, af­ter rental prices sky­rock­eted in some lo­ca­tions, putting im­mense fi­nan­cial pres­sure on ten­ants,” Mr Collins said.

ABS data also showed owne­roc­cu­piers and in­vestors faced an av­er­age in­ter­est rate on stan­dard vari­able home loans of 12 per cent; much higher than to­day’s av­er­age of 5.21 per cent.

Mort­gage Choice spokes­woman Jes­sica Darn­brough said the av­er­age loan size in WA had in­creased al­most 900 per cent over the past 30 years to $349,000, yet the av­er­age wage was up just over 300 per cent to $87,000 a year.

“It goes to prove Aus­tralians are a lot more com­fort­able with high lev­els of debt than they used to be and don’t bat an eye­lid at tak­ing out de­cent-sized mort­gages,” she said.

WHILE Com­mu­nity News­pa­per Group has kept read­ers in touch with their com­mu­nity over the past 30 years, Perth’s ur­ban area has grown from just un­der 500sq km to about 870sq km.

Most of­fi­cial hous­ing records start af­ter our foun­da­tion year, but REIWA data on the es­tab­lished home mar­ket re­veals the me­dian house and unit prices for the June quar­ter 1985 were about one-tenth of present val­ues at $50,800 and $38,600 re­spec­tively.

Mo­men­tum Wealth man­ag­ing di­rec­tor Damian Collins said the sta­tis­tics showed Dalkeith was then Perth’s most ex­pen­sive sub­urb with a me­dian house price of $162,984. To­day it has lost the top spot to Pep­per­mint Grove to be in sec­ond po­si­tion at $2.45 mil­lion.

Red­cliffe was the cheap­est in 1985 with a me­dian of $36,440, which had risen over three decades to $498,500 to place it in

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