PROPERTY values in Perth are continuing to fall but the West Australian government is hoping its stimulus plan will encourage more people to enter the housing market.
Perth house prices dropped 0.7 per cent in June, to be down 9.1 per cent for the past year, according to data released on Monday by property analytics firm CoreLogic.
In the state budget in May, the Labor government announced a temporary six-month increase to the Keystart first home buyers income limits by $15,000 for singles and couples, and $20,000 for families.
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READ NOWThe changes came into effect on Monday and will end on January 1.
No end in sight for property price decline
Perth house prices down nearly $100k since peak
Premier Mark McGowan said broadening the eligibility for the scheme would give more people a chance to own their own home.
“Our targeted housing stimulus will also deliver a much-needed boost to the state’s construction industry, which will create new jobs and support the economy,” he said.
Housing Industry Association executive director Cath Hart said since the temporary broadening of access to Keystart loans was announced, there had already been a significant upsurge in interest from potential home buyers.
Keystart figures show a 75 per cent increase in enquires and 80 applications subsequently lodged by people who were previously ineligible, about half of whom may also be able to access the first home owner grant.
“The McGowan government took a step to correct the measures taken nationally that impacted the WA home building industry disproportionately,” Ms Hart said.
“We were at a different point in the cycle to the eastern states and those changes reversed the early signs of recovery.”
Master Builders WA executive director John Gelavis said as well as helping more people achieve home ownership, the expansion of the Keystart limits would also benefit the residential building industry.
“It will bring relief to many of our members who are fighting for survival through a prolonged slump in the new home sector,” he said.
“We look forward to more housing projects being enabled and important jobs created, including opportunities for apprentices.”
But Liberal opposition spokesman Sean L’Estrange said while stimulating the housing sector was an important goal, the primary purpose of the government should be growing the economy and ensuring people had secure jobs.
“Getting people to take out a mortgage where they may in turn find themselves in negative equity is not going to support growing jobs into the future,” he told reporters.
“Those people will be burdened with debt and they won’t have any discretionary consumer spending to be able to go out and spend on the local economy.”
