FIRST HOME BUYERS IN PERTH SPENT A RECORD MEDIAN OF $450,000 ON THEIR HOME IN JULY, WHICH IS UP $32,000 (7.7 PER CENT) COMPARED TO 12 MONTHS AGO.
“There are many first home buyers and investors competing in the same sub-$600,000 market, which is forcing prices up,” said Urban Development Institute of Australia (WA Division) CEO Debra Goostrey.
“With mortgage rates of around five per cent, applications for the First Home Owner Grant have increased throughout 2013, despite the rental market vacancy rate lifting from 1.9 to 3.1 per cent over the year.”
Ms Goostrey said that there were over five thousand more FHOG applications over the 12 months to July compared to a year earlier and nearly twice as many applications as two years ago.
The number of online rental listings in July lifted 4.1 per cent to 3,032 in Perth and is up 133 per cent on levels 12 months ago, according to SQM Research.
“We’ve seen the market balance change dramatically over the past 18 months, encouraged by a strong lift in home-ownership, but also the return of investors,” said Ms Goostrey.
The value of dwelling investment finance in WA increased 18.3 per cent in 2012/13, with $1.6 billion more dwelling investor finance taken out during the year.
“Although established property market listings have increased in recent months, there are still relatively few dwellings priced in the first home buyer and investor range,” said Ms Goostrey.
Ms Goostrey said that if the price escalation in Perth becomes too great, there will be many potentially buyers unable to enter the market.
“Housing affordability concerns cannot be tackled unless we get a whole of government commitment to tackling the complex issues of urban development,” said Ms Goostrey.
“Government agencies must recognise that the cost of delays and additional regulatory requirements get passed through to new home buyers.”
Established house prices in Perth rose at the fastest pace in the nation, increasing 11 per cent over the year to June, according to the Australian Bureau of Statistics.
“The lack of established properties for sale has driven a stronger increase in first home buyers looking at new dwellings.”
The number of grant applications for new homes was 6,839 over the 12 months to July, which represents a rise of 54 per cent compared to a 22 per cent increase in grant applications for established dwellings.
The top first home buyer suburbs in 2012/13 were Baldivis, Ellenbrook and Byford.
Top Locations for First Home Buyers, WA, 2012/13
Suburb/Town | Grants Paid* | Median Established House Price^ | Median Multi-Unit Price^ | Median Vacant Land Price^ | Notional House and Land Package Price** |
---|---|---|---|---|---|
Baldivis | 631 | $440,000 | $359,000 | $185,000 | $395,000 |
Ellenbrook | 403 | $410,000 | $367,500 | $218,000 | $419,000 |
Byford | 284 | $415,000 | $385,000 | $169,000 | $378,000 |
Butler | 260 | $425,000 | $339,000 | $180,000 | $367,000 |
Piara Waters | 258 | $548,500 | $442,500 | $255,000 | $462,000 |
Canning Vale | 256 | $577,000 | $435,550 | $318,000 | N/A |
Thornlie | 244 | $419,500 | $330,000 | $225,000 | $412,000 |
Banksia Grove | 235 | $390,000 | $343,500 | $200,000 | $391,000 |
Nollamara | 211 | $485,000 | $412,500 | $445,000 | $633,000 |
Balga | 201 | $390,000 | $340,000 | $170,000 | $338,000 |
Harrisdale | 197 | $540,000 | $475,000 | $243,000 | $450,000 |
Gosnells | 197 | $349,500 | $305,000 | $185,000 | $385,000 |
Morley | 189 | $515,000 | $480,000 | $255,000 | $475,500 |
Southern River | 183 | $570,000 | $430,000 | $270,000 | $477,000 |
Forrestfield | 182 | $410,500 | $330,000 | $279,00 | $489,000 |
Wellard | 170 | $432,500 | $440,000 | $185,500 | $380,500 |
Maylands | 165 | $750,000 | $381,600 | N/A | N/A |
Alkimos | 163 | $482,000 | N/A | $228,000 | $447,000 |
Scarborough | 156 | $791,000 | $560,000 | $360,000 | $660,500 |
Landsdale | 150 | $567,250 | $452,500 | $303,300 | $534,000 |