Shire of Coolgardie revealed as most affordable regional area to buy a home, according to housing report

New data has revealed the Shire of Coolgardie is the most affordable regional area in Western Australia to buy a home. Property marketplace Domain released its December quarter house price report on Thursday which named Coolgardie as the State’s most affordable local government area, with a median house price of $175,000. The report revealed Kambalda West was the cheapest WA suburb, with a median house price of $185,000 after experiencing an annual price decrease of 6.7 per cent. The City of Kalgoorlie-Boulder was named the third most affordable LGA, with an average property price of $380,000 after a 7 per cent annual increase. In contrast, Fremantle, Busselton, and Augusta-Margaret River were the least affordable LGA’s, with median house prices of $1,175,000, $880,000, and $820,000 respectively. Domain’s chief of research and economics Nicola Powell said strong demand and high property prices in Perth and the South West had encouraged buyers to consider more affordable regional centres such as Kalgoorlie-Boulder. “If people are priced out of one area, they look further afield . . . in order to find something that meets their budgets,” she said. “We’re seeing people seeking more affordable pastures in regional WA. “Some of the cheapest regions (in WA) have seen . . . minor rates of price growth which says a lot about the level of demand. “Over a five-year period for Kalgoorlie, it’s only up 20 per cent relative to some of the other areas which are seeing really strong rates of price growth.” Domain’s report included LGA’s with a minimum of 50 house sales. Murphy Boyden Real Estate principal Margaret Boyden said relatively affordable median home values coupled with sky-high rental prices in Kalgoorlie-Boulder had driven many residents to purchase properties. “With the rent increases, many (residents have decided) that they’re going to buy because it’s actually cheaper than renting,” she said. “It’s the lowest stock hold we’ve ever had, any properties coming onto (the market) are sold fairly quickly.” Ms Boyden said the real estate agency’s most affordable rental was about $430 per week. “There’s certainly more demand than there is supply, our rental properties are always (occupied),” she said. “It’s starting to get quite expensive but of course that is reflective of the employment opportunities in Kalgoorlie and maybe (renters’ income) is above average.” Dr Powell said the national housing market had slowed significantly across all capital cities, with affordability issues, rising living costs, and limited borrowing power all taking their toll. “I do think the market is finally catching up with the financial strain that many buyers are experiencing, and that is because that limited borrowing capacity is taking its toll even in a more affordable market,” she said. “Everything is relative to the average wage, borrowing capacities, and largely speaking we’ve seen some strong rates of price growth, particularly across WA. “Wages just haven’t kept pace . . . in terms of that price growth.”