Affordability constraints don’t dampen buyer spirit
Despite rising affordability constraints, there are still some areas that represent sound buys for first time buyers or property investors.
According to RP Data’s weekly property pulse, units represent the best buy for price sensitive home buyers.
In particular, units within NSW offer the greatest buying power, with buyers spending, on average, $350,444 on a unit.
In contrast, property buyers in Tasmania had the least amount of buying power at $216,556.
RP Data’s research analyst Cameron Kusher said this range in purchasing power is to be expected and reflects the characteristics of these markets with New South Wales having the most expensive property market and Tasmania the most affordable.
“The results for the proportion of unit sales at or below the average buying power appear to be much more encouraging than the results RP Data reported last week for houses, except in Canberra,” Mr Kusher said.
“Even though the results revealed that Perth struggled with its proportion of affordable house sales, it has fared much better across the unit market with 36.1 per cent of sales at or below $324,444. Sydney has also performed very well with 35.0 per cent of all unit sales over the last 12 months priced below $350,444.”
All cities except Canberra recorded in excess of 20 per cent of all sales as being below the determined borrowing power which indicates that the price-sensitive buyer has a far greater selection of locations in which to purchase within the unit market.
Despite the fact that Canberra had the lowest proportion of affordable unit sales, the Jerrabomberra District along with the Kwinana Local Government Area (LGA) in Perth recorded every single unit sale over the last year within the affordable price ranges of $301,556 and $324,444 respectively.