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