Most Affordable Capital Cities

The latest Housing Affordability Report by CoreLogic reveals that Perth is now one of the most affordable capital cities to buy a property in Australia according to Shane Kempton, Group CEO of Professionals.
Mr Kempton said that the report revealed that on the measurement of Price to Income Ratio, Perth (5.5) was now more affordable than Brisbane (5.7), Sydney (8.3), Melbourne (7.1) and Adelaide (6.2).
“Only Darwin (4.5) was more affordable than Perth with Hobart (5.5) being equal to Perth in terms of affordability.
“These figures confirm that Perth, Adelaide, Hobart and Darwin have reached or are nearing the bottom of their current property cycle.
“It is likely that housing will continue to be very affordable during 2017 in these capital cities as there is still a large amount of housing stock available for sale.
“However, during 2018 it is expected that housing affordability ratio could start to mirror those in the Eastern States as the supply of homes for sales begins to decline.
“If we focus on Perth as an example, with a population of more than 2 million residents and high levels of housing affordability, this will draw buyers back into the market during 2017 both from Western Australia and interstate.
“Professionals is already finding strong demand for established houses in Perth that are priced below $400,000 because many of those homes are now becoming cheaper to buy than building a new property.
“So 2017 is now the time to buy a property in these affordable capital cities and take advantage of the current very affordable property prices before they begin to rise in 2018,” he said.