A real estate body in Western Australia is pleased with the results of a nation-wide report for the September quarter that show it to be the most affordable state in which to purchase property.
Following the results of the Adelaide Bank/REIA Housing Affordability Report, the Real Estate Institute of Western Australia’s president Damian Collins said Western Australia was found to be the most affordable state, with the only exceptions being the two territories (the Northern Territory and the ACT).
“While it appears we’ve reached the bottom of the market and improvements are expected in 2019, buyers and tenants remain the beneficiary of the current market, enjoying improved affordability, record low interest rates and a good supply of housing stock to choose from,” Mr Collins said.
The proportion of income to meet loan repayments in Western Australia saw a decrease of 1.2 per cent over the quarter with the average loan size shrinking by 4.6 per cent to $339,943.
In comparison, the proportion of income needed to make loan repayments in NSW is at 36.6 per cent with the average loan size of $449,589.
“Although the Sydney market has started to cool, the dream of home ownership remains unattainable for many Australians on the east coast,” Mr Collins said.
“We’re lucky that this dream is very much alive in WA, which is evident by the large proportion of first home buyers WA has retained, despite the challenging market conditions experienced over the last couple of years.”
WA also ranked number one for rental affordability over the September quarter, with the proportion of income needed to meet median rents falling to 16.1 per cent, lower than Sydney’s 28.5 per cent and Victoria’s 23.4 per cent.
“We’ve observed significant improvements in therental market during 2018 and while this upward trajectory is expected to continue in the New Year, the rental market remains affordable for tenants with Perth’s median rent having held at $350 per week since April 2017,” Mr Collins said.
“With housing affordability in WA continuing to improve, West Australians who are looking to buy or rent property should act soon to ensure they reap the benefits of current favourable conditions.”