Revealed: Most affordable, popular suburbs in Perth for first homebuyers

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Perth
A man walks past a vacant block next to apartment buildings in the Western Australian capital city of Perth. Reuters/David Gray

Medina, with an average lower quartile house price of $185,000, tops the list of most affordable suburbs in Perth for first homebuyers, it has been revealed. Gosnells, Armadale and Kelmscott were the most popular suburbs for first homebuyers this year.

Medina, 40 kilometres south of the CBD, is the cheapest suburb for first homebuyers, according to REIWA. A family with a gross income of about $37,000 can buy a home at that price, the Housing Industry Forecasting Group said.

The second most affordable suburb in Perth is Camillo. It has an average entry level price of $235,000. Armadale follows the list at an average entry level price of $240,000.

The average price for an entry level home in 2017 to September was $408,000. That is comparable with house sales average of $510,000.

Housing Industry Forecasting Group chair Steven Rowley said the market has become more affordable for first homebuyers than it was a decade ago. He thinks there are several options available for first homebuyers in Western Australia, which may not be accessible in other states. "We're often told Western Australia is the state of the first homebuyer and that is definitely true- it's a very good time to buy if you're a first homebuyer.”

The current condition in Perth's housing market meant first homebuyers can now afford to buy closer to the city. But since 1995, the number of affordable houses for sale decreased. The RBA said almost 80 percent of properties are beyond reach.

The report has found that a drop in potential first homebuyer incomes in the region in the past years has impacted accessibility amid falling house prices. Homes are most expensive in Perth around 2008.

The housing unaffordability was felt at the start of the mining boom. First homebuyers were forced out to the urban borders of the city, which was about around 30 kilometres from the CBD. Choices were less than 10 percent of the property market.

Additionally, the report from the RBA shows that first homebuyers from Sydney could afford only one in every 10 properties in the city. They lived an average of 56 kilometres from the CBD if they made a home purchase.

Rowley pointed to the significant price differences of an apartment in Perth to Sydney or Melbourne. He said that a first homebuyer earning $80,000 can buy an inner city Perth apartment, but that’s not possible in Sydney, WA Today reports.

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