The latest Housing Affordability Report by CoreLogic reveals that Perth is now one of the most affordable capital cities to buy a property in Australia.
The report revealed that on the measurement of price to income ratio, Sydney (8.3), Melbourne (7.1) and Adelaide (6.2).
Only Darwin (4.5) was more affordable than Perth, while Hobart (5.5) was equal to Perth in terms of affordability.
These figures confirm that Perth has reached the bottom of its current property cycle.
With a population of more than two million, Perth’s high level of housing affordability will draw buyers from Western Australia and interstate to the market in 2017.
Professionals are already finding strong demand for established houses in Perth that are priced below $400,000 because many of those homes are now cheaper to buy than building a new property.
This is particularly the case in the southern suburbs of Perth stretching from in the east to Rockingham in the west.
Buyers are attracted to these areas because they have established social infrastructure such shops, schools and rail connections, unlike new housing sub-divisions.
It is likely that Perth will continue to be affordable in 2017 as there is still a large number of housing stock available for sale.
However, it is expected that Perth’s housing affordability in 2018 will start to mirror those in the eastern states as the supply of homes for sales begins to decline.