The Urban Development Institute of Australia (UDIA WA) has welcomed today’s announcement by the State Government in relation to Keystart’s property price and income limits.
“UDIA WA has advocated over several years to see the increase and indexation of Keystart’s property price limits to better reflect rising property prices across the state,” UDIA WA Executive Director – Strategy & Policy Sarah Macaulay said.
“These changes will offer eligible homebuyers more choice and better access to low deposit loans in order to get their foot in the home ownership door,” Ms Macaulay said.
A statement by Minister Carey today, outlined the increase of the property price limit from $560,000 to $650,000. The new limit will apply throughout the state and will be regularly reviewed against annualised median housing prices.
Income limits have also been increased.
“We appreciate that the State Government has listened to industry and consumers and made these important changes that will help with the impacts of increasing cost of living,” Ms Macaulay said.
“We are currently seeing that the median price of a house is around $660,000 and rising in Perth, with values being much higher in inner and middle ring suburbs,” Ms Macaulay said.
“If we are serious about offering people housing choice and getting more people to live in established areas, they need to be able to access these types of loans,” Ms Macaulay said.
“With the rental vacancy rate still at critically low levels, the opportunity to get into home ownership is even more important,” Ms Macaulay said. “This is about more housing security for more people.”
UDIA WA figures show that the proportion of first home buyers purchasing new land has been declining in recent years, likely due to rising interest rates and the inability to save for a loan due to high rents.
UDIA WA’s Urban Development Index figures show that 33% of purchasers of new land in Perth in Q1 of 2024 were first home buyers. That is compared to 49% in 2021.
“Keystart is such an important mechanism to assist potential home buyers into home ownership faster and these changes are critical in ensuring the program continues to support housing access and choice in a challenging property market,” Ms Macaulay said.
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Contact:
UDIA WA
Gemma Osiejak
Executive Manager Communications & Engagement
P: 0421 506 819
E: gosiejak@udiawa.com.au