Although the Perth market has seen a rise in local buyers in the last year, there are still some places where three- or four-bedroom properties can be purchased.
The closure of Western Australia’s borders during COVID-19 saw strong local investment in Perth property. This can make it more difficult for those who want to purchase their dream home at an affordable cost.
According to Finder, the latest data from the Australian Bureau of Statistics revealed that the average loan for a WA first-home buyer was $372,947 and required a deposit of $93,237.
Many first-time homebuyers in WA will be looking for affordable homes and within the $400,000 price range.
Cameron Kusher, executive director – economic research, REA Group, states that demand has increased significantly over the past 18 months, with many housing stock being taken up.
Kusher states that WA is not as dependent on foreign migration as other areas of the country. “This has helped the housing market since a lot more people decided that they want to stay in WA and have purchased a lot of the available housing stock.”
He says that even in areas with a wide selection of homes with three- or four-bedrooms available, the options are beginning to narrow.
“We have seen many sales at lower prices over the past 12-18 months, but they might get a little more scarce now that most of that residual stock is gone.
“In some ways, that makes people look for new stock because they can’t find the right thing in the established markets. So they decide to think, “OK, let us get exactly what we want.”
Find the gems
There are still options for families, couples, and individuals looking for affordable homes under $400,000. Realestate.com.au created an interactive map below to assist you in narrowing down your search to areas with homes or units within this price range. The map will show you where sales were less than $400,000 for the year ending June 2020 or the end of June 2021.
Gosnells, for example, will show that there were 389 sales below $400,000 in 2020 and 488 in 2021. Balga in the north shows 177 sales below $400,000 in 2020 and 287 in 2021. In contrast, in the north, there were 189 sales at Butler in 2020 and 244 by 2021. This bracket was south of Perth, Baldivis, and there were 389 and 488 sales in 2020.
Kusher suggests the southeast corridor as a good option for those looking to buy a home below $400,000 and still be within easy reach of Perth. Kusher states that Gosnells and Thornlie are the most popular suburbs in this area, while Armadale and Kelmscott offer affordable options for buyers.
Data from realestate.com.au shows that 236 sales of houses in Armadale for less than $400,000 in the year ended June 2020 and 298 in the same year. In Kelmscott, 136 sales were made at this price in 2020 and 129 in 2021.
Kusher states that heading south is the best place to find some of Perth’s more affordable areas.
“Geographically, it looks very much like the city. However, there has been lots of development in that area over recent years and many new amenities.
There are new opportunities.
Buyers who want to build a new home can find a variety of land and house packages that will help them stay within their $400,000 budget.
For example, in Stockland’s community, Sienna Wood in Hilbert, the median price for a house and land package is in the range of $390,000, explains Louise Nazareth, senior development manager at Stockland.
Stockland caters to all life stages, says Nazareth. A lot of approximately 544 sqm can be purchased for $247,000 if it is a land parcel or $594,000 for a house-and-land package.
There are many deals for as low as $134,000. These attractive entry prices, combined with incentives such as the WA’s First Owner Grant (if applicable), help young West Australians realize their dream of homeownership sooner.
The community counts
Although price is a major consideration when searching for affordable homes, it’s not the only thing that matters. Kusher says that the best combination of price and a strong sense of community is the winning formula.
He says that while most people can choose from many places to buy in most cities, they want to work with someone who has a track record of building communities.
At Sienna Wood, Nazareth says Stockland has invested heavily in amenities such as parks, ovals and cafes so that people can enjoy their local area, with Shipwreck Park, the central focus for families.
Nazareth states that “Our Sienna Wood community brimming is with natural parks, open spaces and unique play areas that families of all abilities can enjoy,”
Our Shipwreck Park, with its flying fox and climbing nets, inground trampolines, and water sensory play areas, is ideal for all abilities. It also allows neighbours to socialize and makes it a great place to meet new friends.
The best of both worlds
Mourad and Samantha Taballo found the perfect combination of affordability and community to purchase a 475m2 block at Stockland Sienna Wood. They are now building their dream home with their four children.
Mourad says the couple were looking for the best combination of land size, house size and location that they could find for their budget.
He says, “We have lived in Canning Vale for a long time and Piara Waters since we were children. So we knew that we wanted to remain there.” “We aren’t going to settle for anything just because we can get in the market, and it was about identifying the priorities and finding the right place.
Mourad believes that price is important, but choosing the right community for their children is crucial.
He says, “It’s just a beautiful tucked away area that has large blocks and families.” It has beautiful walkways and all the natural resources. You get a feeling of being in the country, but it’s only 40 minutes away from the city.