The West Australian
A “short-term sugar hit” provided to West Australians via an expanded Federal Government home deposit scheme has caused house prices to explode for lower and medium-priced properties, analysis shows.
Latest Cotality data, published on Thursday, revealed Perth recorded 8.4 per cent growth for homes under $850,000 since September.
The $850,000 price point is the upper limit for first-homebuyers to access the Federal Government’s scheme, set up to help those who can save a 5 per cent deposit into the property market.
The scheme was expanded nationally, from October 1, to significantly increase the purchase price cap across the regions, from $600,000 to $850,000 in WA.
The Governmental also removed place and income limits.
While the move offered more Australians the chance to achieve their home ownership dream, economists warned it could actually drive prices higher and push home ownership further out of reach for first-homebuyers.
Cotality Research Director Tim Lawless said the data showed the expanded scheme had sharpened demand at the lower price points, with under-cap markets outperforming the more expensive segments across almost nine in 10 regions in Australia.
To read the article in full, including further comments from Tim Lawless, visit the West Australian.