New report shows housing affordability has declined in Western AustraliaNEW
12 March 2018
The Real Estate Institute of Australia (REIA) have released the findings of its latest Housing Affordability Report, which found housing affordability declined in Western Australia in the December 2017 quarter.
The national report, which is produced in partnership with Adelaide Bank, showed housing affordability had declined across all states and territories, and rental affordability had declined in every state and territory except for Western Australia and New South Wales.
REIA President Malcolm Gunning said a coordinated and aligned approach by all three levels of Government were needed to address the housing affordability issue.
“We need to address this with some urgency and reform the planning and approval process. We need all tiers of Government involved and implementing change.
“REIA believes a first step in this is the appointment of a Minister of Property Services. This would also recognise the importance of the property sector as a driver of economic growth and employment. Property investment supported by historically low interest rates has been a significant contributor to growth in the Australian economy since 2013-14 as we transition away from a decade-long reliance on mining,” Mr Gunning said.
Housing affordability results for WA
There was a mixed bag of results across WA in the December 2017 quarter, with housing affordability worsening over the quarter but improving when compared to the December 2016 quarter.
The report found the proportion of income required to meet loan repayments increased 1.5 per cent to 23.9 per cent in the three months to December 2017 and declined by 0.3 per cent decline compared to the December 2016 quarter.
First home buyers
The number of first home buyers in WA decreased to 3,996 in the December 2017 quarter, a decrease of 9.8 per cent over the quarter but an increase of 4.9 per cent compared to the same time last year.
Of all Australian first home buyers over the quarter, 12.9 per cent were from WA, while the proportion of first home buyers in the state’s owner-occupier market was 34 per cent.
The average loan to first home buyers increased to $316,067, an increase of 4.1 per cent over the quarter but a decrease of 1.5 per cent compared to the December quarter 2016.
The total number of loans (excluding refinancing) in WA decreased to 11,744, a decrease of 4.2 per cent over the quarter and a decrease of 2.7 per cent compared to the same time last year.
The average loan size increased to $352,796, an increase of 6.8 per cent over the quarter and 0.5 per cent compared to the December quarter 2016.
Perth rental market
Rental affordability in WA remained stable during the December quarter, with the proportion of family income required to meet the median rent remaining at 16.4 per cent, the same as the previous quarter but a decrease of 1.3 percentage points compared to the year before.
For more information about the WA property market, visit the WA market page.