First home buyers in Western Australia strengthened by grant increase
Anyone considering purchasing property in Australia in the near future could be interested to hear about the recent growth in First Home Owner Grant (FHOG) applications in Western Australia, after the state government increased the grant back in September.
The changes have encouraged first home buyers to begin looking into the local real estate market seriously, which is great news for buyers and sellers alike.
In September, the grant was increased from $7,000 up to $10,000 for new dwellings - a great kickstart for many home buyers in the region. This could be enough to help get well on your way for the home deposit.
After the drop, data collected by the Urban Development Institute of Australia (UDIA) of Western Australia noted that applications for home grants in Western Australia increased by 17 per cent during October.
UDIA Chief Executive Officer for the Western Australian branch Debra Goostrey said the reduced FHOG helped to encourage the market to grow, as first home buyers begin to look seriously into their property options in the area.
She went on to say this trend had occurred following the increase in the FHOG and was expected to continue heading into the new year.
Furthermore, she stated that market conditions and government policy have been responsible for creating a "shortfall of affordable housing".
"First home buyers looking to purchase for less than $500,000 in Perth are finding there are many opportunities in the new, smaller product which has been produced since the GFC," said Ms Goostrey in a November 19 statement.
However, grant applications are now 52 per cent higher than the ten year average, compared to applications for established dwellings, which rests at 15 per cent higher than the same average.
"In a market where established house prices in Perth increased 8.6 per cent over the year to September and residential listings have declined more than 40 per cent over the past two years, new dwellings are increasingly affordable and desirable to first home buyers," said Ms Goostrey.
Now is the perfect time to consider buying land, as the average vacant block price in Perth has grown by 3.3 per cent over the last year. Furthermore, more than 40 per cent is selling for less than $200,000.
"Price growth has been kept in check despite developers selling 30 per cent more lots in the September quarter compared to 12 months ago, and smaller, more creative lot designs have played a key role," said Ms Goostrey.