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State of Markets – WA January 2012

02 JAN 2012 • By Phillip Tarrant • 2 min read • Hotspots

Essential information, plus expert insight on what is shaping the national property market...

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WESTERN AUSTRALIA

 

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WA housing costs outstrip the country
Housing costs in WA grew three times faster than in the rest of the country, according to the Australian Bureau of Statistics (ABS).

The ABS’ ‘Housing Occupancy and Costs 2009-10’ report found that the total cost of rent, mortgage payments, rates and water increased by 14.7 per cent between 2007/2008 and 2009/2010, compared with 4.8 per cent nationally.

An average of $200 per week was required per person to cover rent or mortgage payments and bills such as water and rates during 2009/2010.

Housing costs accounted for 21 per cent of renters’ gross income compared with 20 per cent for mortgage holders.

The average Western Australian used 14 per cent of their wage to pay for housing, compared with the national average of 13 per cent.

WA properties have fallen in value since the ABS data were collected, although rents have significantly increased.

Perth rents jump, prices to increase
Rental market pressure has increased in Perth, according to new data from the Real Estate Institute of WA (REIWA).

REIWA’s quarterly report reveals that the vacancy rate dropped to its lowest level in two years, to under three per cent.

Despite a 19 per cent increase in house sales in October, average rents rose by $15 to $395.

“It seems that despite housing affordability having improved, many people are still opting to rent rather than buy and this is placing increased pressure on the rental market,” REIWA president David Airey said.

The Perth median house price dropped from $480,000 to $450,000, but REIWA predicts that current increases may push this up to $465,000.

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Twenty-eight per cent of sales were to first home buyers who typically purchase under $450,000.

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Phillip Tarrant

Phillip Tarrant

AUTHOR

Phillip Tarrant is one of Australia’s leading property commentators, with more than a decade at the forefront of conversations shaping the nation’s property investment market.

As the long-time host of the Smart Property Investment Show and a regular commentator across property, finance and business, Phillip has interviewed thousands of investors, economists, advisers, brokers, agents and industry leaders, giving him a unique perspective on the trends, policies and market forces influencing Australian property.

Beyond property commentary in the media, Phillip is an active property investor himself, with first-hand experience building and managing a diversified property portfolio across multiple markets and cycles. His insights combines this practical investor perspective with deep exposure to the broader property and financial services ecosystem.

Phillip is also CEO and co-founder of Managed, an Australian property payments and technology platform transforming the way property managers, landlords and tenants manage rental payments and property transactions.

Through his writing, podcasts and industry engagements, Phillip focuses on cutting through market noise, challenging conventional thinking and helping investors make more informed, strategic decisions. His commentary regularly explores property markets, lending, taxation, regulation, investment strategy and the changing dynamics of Australia’s housing sector.

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