WA most affordable state for buyers, renters

WA most affordable state for buyers, renters

WHEN it comes to real estate, WA is the most affordable state in Australia, according to the REIA and Adelaide Bank’s latest Housing Affordability Report.

WA claimed top spot for buying a property on a technicality with the NT and ACT more affordable, but it was the most affordable place to rent 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,” he 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 quarter 2018, a decrease of 1.2 per cent compared to the June quarter.

The average loan size declined 4.6 per cent to $339,943.

“By comparison, in 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,” Mr Collins said.

“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.”

WA ranked number one for rental affordability in the September 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 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.”