SPECIAL REPORT: The state government’s efforts to boost housing affordability have resulted in an increase in diversity of housing options for those buying their first home, with developers saying Perth is coming of age as a modern city.
The state government’s efforts to boost housing affordability have resulted in an increase in diversity of housing options for those buying their first home, with developers saying Perth is coming of age as a modern city.
More than 20,000 first home owner grants were paid in 2013, a 19 per cent rise on 2012 figures.
The last time there were so many first-time buyers in the market was 2009, when the federal government added a $14,000 incentive on top of the existing $7,000 grant.
The grant was amended in September in an effort to funnel more first home buyers into the new housing market, with the state government offering $10,000 for buyers building homes, and decreasing the incentive to $3,000 for existing dwellings.
Mirvac Group’s chief executive of residential development – apartments and master planned communities, John Carfi, said the higher grant level, the low interest rate environment, as well as the small gap between rents and mortgages translated into increased demand from first home buyers.
“This demand has an initiated an increase in the mix of home sites on offer to cater for smaller first homes right through to larger family home sites,” Mr Carfi said.
Urban Development Institute of Australia WA president Paul Lakey said the prevalence of first time buyers in the market had led to medium-density developments popping up in suburban areas on the urban fringe.
“People are looking at products in a different way, so now you have one and two-bedroom apartments in Ellenbrook and Wellard and places like that,” Mr Lakey told Business News.
“It is really refreshing to see Perth coming of age in terms of diversity of product.
“People are recognising that, for their first house they don’t need a big four by two and a big family room, so they are going for smaller townhouses and apartments but in the same area.
“If you were a young couple or a single 10-15 years ago, you were still buying a four by two on the fringe, because you didn’t have a choice.
“Also, in terms of urban development you have got projects on the outer fringe, such as Butler, Brighton and Shorehaven, which are denser than Subiaco.
“There is a bit of a myth that the urban fringe is low density, but in actual fact the industry and the WA Planning Commission has really responded to the market, to actually try and restrict urban sprawl and create more employment nodes and the like.”
Peet managing director Brendan Gore acknowledged the move to smaller lots for first time buyers looking to get a start in the market, but said there was still reasonable demand for larger lots from family buyers.
“That’s quite consistent as well,” Mr Gore said.
“We’ve always taken the view that there always has to be a balanced outcome in our estates.
“Affordability is still an ongoing challenge, particularly as we continue to battle various red and green tapes in our space, but the product will continue to evolve in my view, both from a lot size and layout perspective, and also from a builder perspective, in terms of construction and how it’s done.
“For example you could see more modular housing going up, and those type of things, which are faster and more cost efficient.”
