Is Housing Affordability A Concern In Your Area?
Recent data has showed Sydney as the 2nd least affordable city in the world out of some 400 + cities in nine countries including the USA, UK, Australia and Canada. The top 5 is made up of:
City and Median Multiple
- Hong Kong; 1
- Sydney, Australia; 2
- Vancouver, Canada; 8
- Santa Cruz, USA; 6
- Santa Barbara, USA; 3
The list is defined by a median multiple which is calculated by the average sale price in a Cities and the average household income. In Sydney, the median multiplier is 12.2 and the average wage is approx. $93,500 which means the average purchaser price for property is approximately, $1,140,700.00. A median multiplier over 5 is classified as high in terms of housing affordability.
On 5 January 2017, the Real Estate Institute of WA President, Hayden Groves stated the median Perth (metro area) house price lifted by 1.9% to $535,000.00, for the previous quarter October – December 2016. In WA the average annual income for households is approx. $90,000.00. This would give Perth a median multiplier of 5.94. Mr Groves also said “… prices across the metro area are slowly starting to lift on a monthly basis. If you’re a buyer waiting for the ‘bottom of the market,’ you would be wise to make a buying decision, soon…’
The statistics for the Midland / Swan / Perth Hills area, regarding household incomes are not available. If we adopted the WA average annual income for houses at approx. $90,000.00 and the REIWA median house prices (based on settled sales evidence as at 16 January, 2017 from 1October, 2015 – 30 September, 2016) for the following local suburbs :
Suburb Median house price Median Multiple
Bellevue $400,000.00 4.44
Forrestfield $425,000.00 4.72
Midland $384,000.00 4.27
Swan View $413,500.00 4.59
All four of these suburbs in the local area show a median multiplier of less than 4.75.
Housing affordability is an issue for concern on the east coast of Australia, Wingcaribee NSW (ranks 7th), Tweed Heads, NSW (ranks 8th) and Melbourne (ranks 10th ).
Its important note that the wider Perth metro area is also experiencing housing affordability stress which can be seen by Perth’s urban sprawl, in recent years. Perhaps the reason housing affordability in Western Australia is less sever that the Eastern States, is due to Local Government support. In 2013, the State Government set up a housing affordability sector of the Department of Housing. Shared ownership schemes have been available since the late 2000’s along with KeyStart Financial Programs; in fact housing affordability is an issue which Western Australia has been dealing with for some time. This being said, many of these projects have been North and South of the River at great distances from the CBD.
If you could own your own property for paying less than $50.00 per day, would this address your housing affordability concerns? Is this something that you would be interested in?
At Real Estate Plus, we pride ourselves with being in touch with the community needs. We understand that the community requires cheaper housing costs. In Forrestfield and Swan View we can offer you brand new properties BELOW the median housing price for this area.
Contact us today to get yourself into a brand new home.
Sources:
Demographia Intentional Affordability Survey
http://www.abc.net.au/news/2017-01-24/sydney-housing-affordability-nightmare-laid-bare-in-survey/8206676
http://reiwa.com.au/about-us/news/perth-s-median-house-price-increases-again-in-december/
http://affordablehousing.wa.gov.au/Pages/default.aspx
http://www.openingdoorswa.com.au/
http://www.keystart.com.au/useful-info/education-program