Western Australia is the only state where housing affordability has improved over the past two decades.
According to the latest report from the Real Estate Institute of Australia (REIA), homeowners in Western Australia allotted less of their family income in home loan repayments in 2020 at 25.4% than they did at the start of the century when the proportion of income required was 25.6%.
The analysis looked at the proportion of the median weekly family income required to service loan repayments in the respective state or territory in 2000, 2005, 2010, 2015 and 2020.
While Western Australia was the fourth most expensive state for housing in 2000, it became one of the most affordable in the country in 2020, only behind the Australian Capital Territory and Northern Territory.
Over those time periods, 2010 was the year when homeowners experienced the least affordability in Western Australia. The share of income needed to service a loan at that time was 38.8%.
Biggest price gainers
A separate report from The Real Estate Institute of Western Australia (REIWA) showed how strong conditions led to some Perth suburbs reporting stellar gains over the past financial year.
REIWA President Damian Collins said the 10 biggest price gainers experienced growth of more than 26% in just a year, reflecting heightened competition among buyers, particularly those who are looking for prime properties.
“While price growth has been widespread across all price points over the last 12 months, it is Perth’s luxury market that has dominated this list. Good quality homes in desirable locations are achieving positive outcomes for sellers in these areas,” he said.
Five of the suburbs entered the million-dollar price bracket over the past financial year.
“Even more impressive is that for each of those five suburbs, this is the first time they have recorded median house sale prices above $1m,” Mr Collins said.
“If you own a home in one of these 10 suburbs and are considering selling, now would be a good time to reach out to a local REIWA agent and take advantage of the favourable market conditions.”
|
SUBURB |
MEDIAN HOUSE SALE PRICE 2020-21 ($) |
MEDIAN HOUSE SALE PRICE 2021-22 ($) |
PERCENTAGE CHANGE (%) |
|
1. Marmion |
966,250 |
1.35m |
+39.7 |
|
2. North Beach |
1.03m |
1.4m |
+36.2 |
|
3. Gwelup |
822,500 |
1.11m |
+35.2 |
|
4. Mount Hawthorn |
952,500 |
1.27m |
+32.8 |
|
5. Woodlands |
1.01m |
1.317m |
+30.4 |
|
6. Fremantle |
855,000 |
1.1m |
+28.7 |
|
7. Stoneville |
490,000 |
627,500 |
+28.1 |
|
8. North Perth |
900,000 |
1.15m |
+27.8 |
|
9. Mount Claremont |
1.4m |
1.785m |
+27.5 |
|
10. West Leederville |
1.125m |
1.419m |
+26.1 |
—
Photo by @rachel-claire on Pexels.
