Many under stress over housing costs
BELMONT is the second least affordable suburb in Perth for multi-residential dwellings on a price to income ratio.
Prices have increased by $27,000 in two years, a new report into housing affordability has shown.
The median unit price has increased from $403,250 in 2013 to $430,250 in 2015, with Belmont having a price-to-income ratio of 5.8.
Fremantle had the highest median price-to-income ratio of 8.4, with the price of $695,000 unchanged since 2013.
According to the report by the Bankwest Curtin Economics Centre, housing affordability has improved for Western Australian households.
But many still remain vulnerable to housing stress and pressures.
Lead researcher and BCEC deputy director associate professor Rachel Ong said while the proportion of households that regard their housing as “unaffordable” fell from around 33 per cent to 19 per cent over the last two years, low income households were still facing pressure.
“Currently, individuals living on a minimum wage cannot afford to rent a one bedroom unit in the Perth metropolitan area, despite targeting the lower end of the housing market,” Ms Ong said.
A key factor in affordability was the diversity of available housing options. “WA is one of the least diverse areas for housing stock options in Australia,” she said.
“Expanding the range of available housing both in terms of the type of dwelling and access options will help to improve housing affordability for everyone.”
The median sales price of established houses in Belmont was $525,000 at the end of last year, while the city’s median household gross income was $75,100.
City of Belmont chief executive officer Stuart Cole said the increase in values could be attributed to the co-ordinated approach of the city and high standard of design expected under its split density codings and larger areas identified as special development precincts such as The Springs area.
“Higher standards of design and co-ordinated redevelopment results in better built form and improved amenity for the whole area,” he said.