Perth's affordable housing pric...
There has been a lot of discussion recently about the stability of Perth's property market.
However, its decreasing rates are resulting in a lot of affordable housing, which comes at a good time for the buyer market.
Currently, banks in Western Australia are making things more difficult for first-time buyers to borrow money for their houses, reports Domain.
As lending criteria have been tightened, it seems that those who are younger will not be able to afford to buy property on the east coast. This seems particularly prevalent as house prices are showing no signs of decreasing in both Melbourne and Sydney.
However, on the west coast of the country, the average price of a house in Perth has fallen to $585,369 (£293,180).
Information from Domain Group's December House Price report not only shows that this average house price indicates a drop of 4.5 per cent, but it also highlights that this is the lowest the median house price has been in Perth since 2013.
This good news comes at an excellent time, as it has been reported that buyers are allowed to borrow $100,000 less than they were at the same time last year.
Putting this into perspective, in 2015 a couple with no children and a combined salary could have borrowed $823,000, but this year this has shrunk to a maximum of $714,000.
President of the Real Estate Institute of Western Australia Hayden Groves said: "Affordability in Perth is the best it has been in more than a decade."
He personally expects to see a majority of first-time buyers building property on purchased land, rather than buying established housing.
Speaking on the recent drop in value of residential property in WA, Aussie Home Loans executive chairman, John Symond, said: "The upside to the continuing softness in some parts of the state's property markets is that buyers have a wide range of choices and can take advantage of the historically low interest rates."