State of Markets – WA January 2012

By Phillip Tarrant 02 January 2012 | 1 minute read

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

WESTERN AUSTRALIA

 

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.

PerthPerth, TAS Perth, WA 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.

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

About the author

Phillip Tarrant

Phillip Tarrant

Phillip Tarrant is executive editor – Real Estate at Momentum Media. He is also an investor with a large property portfolio.

He leads the content strategy and corporate growth for a range of market and business intelligence platforms at Momentum Media, including Smart Property Investment – the authoritative voice for Australia’s property investment community.

As head of the Smart Property Investment Podcast Network, he also steers the largest network of property podcasts in Australia, which collectively generates nearly 2 million downloads every year.

There are over 2.6 million investment properties in Australia, with over 2.1 million Australians (or around 8 per cent of all Australians) owning one or more investment properties. A vibrant and critical sector for... Read more



State of Markets – WA January 2012
default
spi logo

Get the latest news & updates

Join a community of over 100,000 property investors.

Check this box to receive podcast updates

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.