REIWA welcomes the latest Adelaide Bank and Real Estate Institute of Australia’s Housing Affordability Reportwhich reveals that Perth is one of the most affordable cities compared to other capital cities in Australia, with housing affordability in Western Australia improving by one per cent compared to the March 2018 quarter.
REIWA President Damian Collins said the WA property market was favourable for both buyers and tenants, presenting excellent opportunities to secure housing at affordable prices.
“This is an exciting time for potential and current home buyers. Not only is WA currently the most affordable state in the country, but this combined with the latest RBA cuts as well as the proposed APRA changes to servicing rates, recent Keystart changes and the Federal Government’s proposed first home loan guarantee scheme, housing will become even more affordable” Mr Collins said.
The report found that the proportion of income required to meet loan repayments in WA improved to 22.6 per cent in the March 2019 quarter, a decrease from 23.1 per cent compared to the December 2018 quarter and the average loan size reduced 4.1 per cent to $336,186.
“By comparison, in New South Wales, the proportion of income required to meet loan repayments is 35.4 per cent, while the average loan amount is $453,101 – significantly higher than WA,” Mr Collins said.
“Although the Sydney market has started to cool, the dream of home ownership remains unattainable for many Australians on the East Coast. We’re lucky that this dream is very much alive in WA, which is evident by the large proportion of first home buyers WA has retained, despite the challenging market conditions experienced over the last couple of years.”
The report showed that rental affordability has improved in WA with the proportion of income required to meet the median rent decreasing to 16.5 per cent.
“While this isn’t the largest improvement in the country, according to the report WA is still ranked number one for rental affordability in the March 2019 quarter out of all states and territories, with Perth’s median rent having held at $350 per week,” Mr Collins said.
With housing affordability in WA continuing to improve, West Australians who are looking to buy or rent property have the best market conditions in many years in which to make a decision.
For more information or to discuss your options, contact our team today.