First home buyers (FHB) in Perth are spending record amounts on new homes, according to figures released by the Urban Development Institute of Australia WA.
Data shows the average FHB in the West Australian capital spent $450,000 in July, an increase of $32,000 a year earlier.
The region’s under-$600,000 property market share has been moving at a rapid-fire pace over the past year, with UDIA WA Division chief executive, Debra Goostrey, telling News Ltd there are signs of a ‘two-speed’ market.
“There are many first home buyers and investors competing in the same sub-$600K market, which is forcing prices up,” she said.
Goostrey added that there were over 5,000 more FHB grant applications made in the 12 months to July compared to a year ago – and nearly twice as many compared to two years prior.
However, while established property market listings and rental vacancies have risen in recent months, Goostrey says there are still ‘relatively few’ dwellings priced in the FHB and investor range.
“If the price escalation in Perth becomes too great, there will be many potential buyers unable to enter the market.”