Infrastructure development and a recovering state economy have combined to lift Perth’s property market out of the doldrums. The government’s investment in projects like Metronet and Elizabeth Quay, as well as upgrades to an array of shopping centres, are also projected to boost the appeal of surrounding Perth suburbs.
Terry Ryder, founder of Hotspotting, said 42 suburbs in Perth recorded sales growth in the December quarter, a stark contrast to the zero recorded in the final quarter of 2016.
“We provide reports to clients right around Australia and what we’re saying is that Perth is the land of opportunity for savvy investors,” Ryder told Perth Now. “Jobs are being created and resources projects are being started, which is very positive for the WA economy and the property market.”
As for housing affordability, Western Australia has emerged in the top ranks. According to the latest Housing Affordability Report, released by the Real Estate Institute of Australia (REIA) and Adelaide Bank, WA is one of the most affordable states in the country for tenants and homebuyers. Only the Northern Territory and ACT are more affordable.
Hayden Groves, president of the Real Estate Institute of Western Australia (REIWA), said WA homebuyers and tenants are in a fortunate position.
“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,” he said.
The proportion of income required for tenants to pay their rent has decreased, from 19.2% in the September quarter of 2016 to 17.4% in the September quarter of 2017, despite stagnant wage growth.
As for prospective homebuyers, the proportion of income required to meet home loan repayments has decreased, from 23.8% in the September quarter of 2016 to 22.4% in the September quarter of 2017.
“Overall, affordability improved across the nation as red-hot markets in Sydney and Melbourne cool, although in New South Wales home owners still pay an average of 36.1 per cent of their family income on home loan repayments—significantly more than West Australians do,” Groves said. “While the dream of home ownership remains a challenge on the East Coast, it’s very much alive and well in WA.”
“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.”
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