13/11/2009 - 11:37

State raises $11m from house auctions

13/11/2009 - 11:37

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The state government has raised $11 million from the auction of 10 government houses in affluent suburbs over the past three months.

State raises $11m from house auctions

The state government has raised $11 million from the auction of 10 government houses in affluent suburbs over the past three months.

The auctions generated more than $800,000 above the total reserve.

"The last three houses were auctioned over the weekend, bringing the total to almost $11million," Housing and Works Minister Troy Buswell said.

"We are now in the process of investing those proceeds into buying and building new social housing throughout the State.

"It makes sense when we have old homes in suburbs where values have increased that we capitalise on that extraordinary growth.

"Selling a small number of high value homes allows us to build or buy many more affordable homes in a range of suburbs for people on moderate incomes.

"I expect we will be able secure at least 35 new social housing dwellings from the proceeds of these 10 sales.

"And if we use these proceeds to build on our own land we could turn 10 dwellings into 60.

"This is an excellent result and a great example of one of the innovative ways we are working towards reaching our goal of providing 20,000 additional affordable housing dwellings by 2020.

"The State's campaign to meet this target also includes partnerships with the Commonwealth to boost social housing stock; our review of eligibility; cracking down on anti-social behaviour and shared equity loan schemes."

In the June 2009 quarter, the median house price for Perth was $445,000. The Department of Housing defines a high value property as one valued at twice the prevailing median house price.

The department's stock review is ongoing and more homes will in future be identified as suitable for sale under the program.

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