Perth is known to be one of the most affordable cities in Australia to buy a house, but nothing makes this more evident than looking at the equivalent suburbs in pricier Sydney and Melbourne.
The most affordable suburb within 10 kilometres of the CBD has a median average difference of $994,423 between Perth and Sydney.
In Sydney, the most ‘affordable’ suburb within 10 kilometres of the city is Arncliffe, with a median house value of $1.455 million, according to CoreLogic.
Comparatively, in Perth, the cheapest suburb within 10 kilometres of the CBD is Westminster with a median house value of $404,577.
This means an investor could effectively buy 3.5 properties in Westminster for the cost of just one in Arncliffe.
Meanwhile, the cheapest suburb within 10 kilometres of the CBD in Melbourne is Maidstone with a median house value of $922,681. The equivalent suburb in Perth is $518,104 cheaper.
REIWA President Damian Collins said the dream of home ownership was still very much alive in Perth.
“There are plenty of affordable options close to the city in Perth, whereas in places like Sydney and Melbourne you’d likely need to spend over a million dollars to get your foot in the door close to the city,” Mr Collins said.
Real Estate Institute of Australia’s (REIA) Real Estate Market Facts report showed that Perth’s median house price in the June 2021 quarter was $515,000, which is the lowest median of any capital city in Australia and 43.7 per cent lower than the national average.
Comparatively, the median house price in Sydney and Melbourne during the June 2021 quarter was $1.41 million and $1.01 million respectively.
“There is a significant difference between what is considered ‘affordable’ in Sydney and Melbourne versus the equivalent in Perth,” Mr Collins said.
“A million dollars goes a long way in our local property market, whereas on the east coast you’ll most likely have to fork out close to a million dollars for your first home, which is why prospective buyers are finding it increasingly difficult to get on the property ladder in these cities.
“We are very lucky in WA that housing is still so affordable and that, even amidst a market recovery, home ownership remains within reach for so many West Australians.”
|PERTH SUBURBS||MEDIAN HOUSE VALUE||MELBOURNE SUBURBS||MEDIAN HOUSE VALUE||SYDNEY SUBURBS||MEDIAN HOUSE VALUE|
|Nollamara||$417,614||Footscray||$1.023 million||Waterloo||$1.502 million|
|Queens Park||$473,922||Coburg North||$1.044 million||Sydenham||$1.530 million|
|Redcliffe||$482,891||West Footscray||$1.056 million||Tempe||$1.635 million|
|Cloverdale||$490,121||Spotswood||$1.115 million||St Peters||$1.660 million|
|Bentley||$520,432||Preston||$1.173 million||Mascot||$1.689 million|
|Kewdale||$527,961||South Kingsville||$1.183 million||Erskineville||$1.713 million|
|Belmont||$539,686||Maribyrnong||$1.195 million||Earlwood||$1.715 million|
|Morley||$549,745||Yarraville||$1.197 million||Eastlakes||$1.771 million|
|St James||$576,564||Flemington||$1.207 million||Newtown||$1.789 million|
However, the Sydney Morning Herald reported earlier this month Perth house values are rising by $260 every day.
The publication noted the new mortgage to buy an established house in Western Australia had climbed by $50,000 in two years.
CoreLogic reported the median house price in all of Perth to the end of July was $568,000 (a $53,000 hike from REIA’s estimate). This indicated an increase of $259 a day over the past 11 months.
Meanwhile, the average mortgage to buy an established house in NSW jumped from almost $554,000 to a record $755,000 in July, an increase of 36 per cent over two years. In Victoria, it has climbed by a third to $634,000.
The analysis identified 12 mainly outer suburban areas of Sydney and Melbourne where the combined total of financially stressed tenants and homebuyers now equates to more than half of all households.
Based on a rolling sample of 52,000 households, the survey also showed the overall proportion of mortgage holders in these areas struggling with their finances rose from 32.9 per cent in February 2020 to 41.7 per cent in July 2021.
UNSW City Futures Research Centre report lead author Professor Duncan Maclennan argued Australia’s housing system needs to be stabilised.
“With house prices and mortgage borrowing once again surging in 2021, Australia’s household household debt is now at a record national high,” Professor Maclennan said.
“If the housing market takes a hit from future economic instability, a boost to social and affordable rental would soften the downturn for the entire economy.”
|Area||State||Locality type||Households in stress (%)|
|La Trobe||Vic||Outer Metropolitan||57.9|