WA’s real estate market is bouncing back, with new figures revealing first homebuyer activity is at its highest level in almost three years.
Figures released today from the Office of State Revenue showed the number of First Home Owner Grant applications increased 5.1 per cent in August to 1728 applications – levels not seen since November 2009, the second last month of the FHOG Boost.
Of the 1728 applications, 1226 were for established property and 502 for new dwellings.
REIWA President David Airey said the strength of the first homebuyer market was largely due to current policy settings and called on the State Government not to change them.
“Removing stamp duty from first homebuyers who purchase under $500,000 has been a great incentive for this section of the market, it’s really important not to change that,” he said.
The median purchase price for first homebuyers is currently $400,000.
Mr Airey said the resurgence of the first homebuyer was also helped by low and stable interest rates and increasing rents in metropolitan Perth.
“Many younger people are leaving the rental system for a home of their own,” he said.
Urban Development Institute of Australia WA chief executive Debra Goostrey said Baldivis and Ellenbrook were the two most popular suburbs for first homebuyers in July and August.
“Young buyers particularly are feeling the impact of high rental costs and are seeing that the cost gap to service a mortgage is quickly decreasing,” she said.“After five years of relatively subdued property activity, there are a range of affordable properties to suit the needs of young buyers and families.”
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