Western Australia is one of the most affordable markets in the country for tenants and homebuyers alike
Western Australia may still be in a down-market phase, but its affordability is making it an attractive prospect for potential buyers.
The housing affordability report published by the Real Estate Institute of Australia in January 2018 indicated that the state’s housing and rental affordability rose in the September 2017 quarter.
“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,” says Hayden Groves, president of the Real Estate Institute of WA.
“Overall, affordability improved across the nation as red-hot markets in Sydney and Melbourne cool. While the dream of home ownership remains a challenge on the east coast, it’s very much alive and well in WA.”
As of December 2017, the median house price in Perth has been stable over a six-month period, which suggests that the market has finally bottomed out.
“With our local market on the cusp of recovering, now is the time for buyers to take advantage of favourable conditions to secure their home before our local WA market becomes less affordable,” Groves advises.
A long way to go
Some areas of Perth even saw house values increase at the end of the year. The central subregion’s median house price soared by 8.1% from September to December 2017. Stirling East, Joondalup North and Serpentine-Jarrahdale also experienced considerable growth during this period.
“It’s pleasing the Perth market appears to have finally turned a corner. We expect market conditions to moderately and steadily improve throughout 2018, although we caution against expectations of rapid growth this year,” Groves says.
Metropole Property Strategists CEO Michael Yardney notes that about 50,000 jobs were created over 2017, but he cautions buyers against making hasty investments.
“While the market may bottom out in 2018, it’s much too early for a countercyclical investment in the west – I can’t see prices rising significantly for a number of years,” Yardney says.
SUBURB TO WATCH
APPLECROSS: Two-tiered market in Perth
Nestled in between Canning Highway and the Swan River, the high-priced suburb of Applecross has an uneven market.
Houses are doing very well in this area, with prices rising by 9.6% in the year to December 2017. As a result, the median house value shot past $1.5m. On the fl ip side, unit prices fell by 6.5% in the same period and rental rates by 6.2%.
Applecross is situated just 7km from the Perth CBD, but this doesn’t mean it isn’t well stocked itself. It is home to a community recreation facility that features a memorial to the late actor Heath Ledger, a yacht club and Raffl es Hotel. It’s also the site of Waylen Bay.
Accessibility: Bounded by Canning Highway, Applecross is a short distance from the Perth CBD
Recreation: Applecross is located near Swan River and is the home of Waylen Bay
Can you afford to buy in this suburb? Find out how much you can borrow
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