PASSING YEARS ARE ACCOUNTED FOR IN DOLLARS AND CENTS
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
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