First-homebuyers up, property prices rise

More than 400 First Home Owner Grants were approved in Ellenbrook in the year ended June 30, 2013.
More than 400 First Home Owner Grants were approved in Ellenbrook in the year ended June 30, 2013.

First-homebuyers across the Perth metropolitan region spent a record median of $450,000 on their home in July ” up more than $32,000, or 7.7 per cent, compared to the same period a year ago.

More than 400 First Home Owner Grants (FHOG) were approved in Ellenbrook in the year ended June 30. That was the second largest in the State for any specific area, trailing only Baldivis (631).

The median average house price for an established home in Ellenbrook is now $410,000. Average unit prices are $367,500 and the median price for a vacant block is $218,000.

Urban Development Institute of Australia (WA division) CEO Debra Goostrey said many first-homebuyers and investors were competing in the same sub-$600,000 market, which was forcing prices up. Ms Goostrey said there were more than 6000 FHOG applications in the 12 months ended June 30 ” up more than 54 per cent year on year and almost twice as many as two years ago.

Grant applications for established dwellings had climbed 22 per cent.

‘With mortgage rates of around 5 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,’ she said.

According to the Australian Bureau of Statistics, established house prices in Perth rose more than 11 per cent in the year ended June 30 ” the fastest pace in the nation.