Best Perth value on record

Best Perth value on record

The Perth property market is at its most affordable on record as falling prices and slowly rising wages give potential buyers their best chance of securing a home.

Housing Industry Association figures show Perth housing is also the most affordable among the nation’s capital cities.

The HIA estimated that in the June quarter, the monthly repayment on a median-priced house accounted for less than 27 per cent of the average income.

In Sydney, buyers needed twice as much income to service a median-priced home.

HIA WA executive director John Gelavis said the improvement in affordability was a long way from the problems of the mining boom, which had priced many people out of the Perth market.

“Massive resource booms in WA over the past two decades have had the economic side effect of rapid dwelling price growth, resulting in poor affordability,” Mr Gelavis said.

“The latest level is a vast improvement on the long term.”

HIA economist Diwa Hopkins warned that there might be price pressures building longer term in Perth because few new properties were coming on to the market.

She said population growth had slowed because of the end of the mining boom and new building construction had fallen.