First home buyers are the winners in WA property downturn

First home buyers are the winners in WA property downturn
Staff reporterNov 26, 2017

The property market downturn in Western Australia has brought in an opportunity for first home buyers, with homes in 30 entry-level suburbs cheaper today from a decade back. 

First home buyers might have to shell out $150,000 less than what they would have paid in 2007 for a house in suburbs with a median price of less than $450,000, according to REIWA figures.

Analysis by The Weekend West revealed that recent and prospective first-homebuyers are the big winners from the property downturn.

The median price has also dropped in the same period in another 21 middle and top-level suburbs.

The 30 suburbs are:

1. Byford

2. Two Rocks 

3. Kelmscott

4. Pearsall

5. Medina

6. Secret Harbour

7. Armadale

8. Balga

9. Camillo

10. Mount Nasura

11. Butler

12. Coolongup

13. Ridgewood

14. Ellenbrook

15. Baldivis

16. Nollamara

17. Rockingham

18. Swan View

19. Shoalwater

20. Port Kennedy

21. Gosnells

22. Sinagra

23. Merriwa

24. Waikiki

25. Spearwood

26. Leda

27. Maddington

28. Midland

29. Beechboro

30. Seville Grove

A four-bedroom house at 24 Pomera Drive, Byford sold in October 2017 for $470,000, according to RP Data.

Built in 2007, it was on the market in the range $530,000-$560,000 in April 2008.

First home buyers are the winners in WA property downturn

Overall, the median price in 75 entry-level postcodes, as well as 116 mid and top-tier suburbs in the metropolitan area, have dropped since the height of the property boom in 2014.

About two-thirds of those suburbs suffered a double-digit price fall in that period.

Real Estate Institute of WA president Hayden Groves told The West Australian that there were signs prices were starting to rise.

REIWA statistics reveal that the median price in the three months to October was $520,000.

It had stayed at a low of $515,000 for several quarters.