Geraldton Western Australia is the most affordable state in Australia, according to a new housing affordability study.
The Housing Affordability Report, produced by the Real Estate Institute of Australia and Adelaide Bank found only the Northern Territory and Australian Capital Territory were more affordable, while WA was the most affordable to rent in out of all states and territories.
REIWA President Damian Collins said the WA property market was favourable for both buyers and tenants, presenting excellent opportunities to secure housing at affordable prices.
“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 report found that the proportion of income required to meet loan repayments in WA improved to 22.7 per cent in the September 2018 quarter, a decrease of 1.2 per cent compared to the June 2018 quarter and the average loan size reduced 4.6 per cent to $339,943.
“By comparison, in New South Wales (NSW), the proportion of income required to meet loan repayments is 36.6 per cent, while the average loan amount is $469,589 – significantly higher than WA. In addition, WA continues to have the highest proportion of first home buyers in its owner occupier market at 35.1 per cent, compared to 23.2 per cent in NSW,” Mr Collins said.
“Although the Sydney market has started to cool, the dream of home ownership remains unattainable for many Australians on the East Coast. 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 ranked number one for rental affordability in the September 2018 quarter out of all states and territories, according to the report.
“The proportion of income required to meet median rents in WA fell to 16.1 per cent during the September 2018 quarter, substantially less than NSW or Victoria which sit at 28.5 per cent and 23.4 per cent respectively,” Mr Collins said.
“We’ve observed significant improvements in the Perth rental 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.
“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.”
For more information about your local area, visit the WA market page.
Source: reiwa.com
7th December 2018
