Freo's View

IS HOUSING BECOMING UNAFFORDABLE?

Posted in development, fremantle, housing, lifestyle, property by freoview on January 24, 2017
LIV residential development with Heirloom apartments in the background.

LIV residential development with Heirloom apartments in the background.

 

While the LIV residential apartment project at Fremantle’s Queen Victoria Street is well under way, it is reported that Perth has one of the world’s least-affordable housing markets, according to property experts.

In a report published in the media today they state that house prices are more than six times the average income in Perth, which is $87,300.

According to Demographia, which compares housing affordability in cities of over one million population,  Australia’s major problem is urban containment planning policies.

Urban containment, infill and higher density policies in WA try to reduce urban sprawl by encouraging more density rather than releasing new so-called greenfields sites. This often negatively affects older character suburbs where inappropriately high and often ugly buildings are destroying the urban amenity.

Housing experts say that high house prices are not a sign of a city’s success but a sign of failure to deliver the housing that its citizens need. Affordable housing is no doubt impacted by high property prices and that is an additional worry.

Roel Loopers

4 Responses

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  1. freoview said, on January 25, 2017 at 8:28 am

    Hard to see the Sydney Harbour Bridge from anywhere in Freo. ; >)

    Roel

  2. Rob said, on January 25, 2017 at 6:58 am

    Roel, most people can buy their own house far cheaper today than they can rent but they won’t be overlooking the Sydney Harbour Bridge.

  3. freoview said, on January 24, 2017 at 8:13 pm

    Absolutely agree Paul. Small and tiny houses, a bit of minimalism and Zen and less clutter and stuff is the way to go.

    I grew up in a house of five children with only two bedrooms, one toilet and no bathroom. Shared a room with my three sisters for a very long time, the other room was for my parents. No big deal. We were a pretty happy family and lived behind the shop of my parents.

    the demands and expectations nowadays are too high. Everyone wants to own a big house with front and back garden and it’s all not sustainable in the long run, because there are a lot of very lonely people out there who no longer connect with the community.

    Roel

  4. freoishome said, on January 24, 2017 at 4:51 pm

    My first home was nothing like a first home of today. It had fewer rooms, and the rooms were tiny, little if any garden, no garage or parking, no curtains, unpainted internal walls, no floor covering, the only white goods was the combined oven/cooktop, no heating/aircon. Furnishing was basic, sparse and secondhand. The only electronics was a landline phone, ie, no tv or music, certainly no internet.
    I had to sell my car (you didn’t have a car each) to help with the deposit, and buy literally a rust bucket on wheels, I could see the road under the rubber mat, scared the living daylights out of me going downhill hoping it would stop.
    Apart from my full-time job, I worked on the petrol pumps at the w/e and mowed lawns during the evenings. Took sandwiches to work and drunk instant coffee or office tea.
    Negative gearing keeps prices and rents higher than they would otherwise be. The whole principle of NG is making money, reducing costs and maximising income. First home buyers wasn’t all it was cracked up to be either.
    Cheaper housing is needed to bring down price and rent, that means, we need to move back toward aspects of what I outline. Less rooms, smaller rooms, less well appointed, etc.
    In Perth we have an ideal climate for the Tiny House movement. We can sit out on the porch most of the year!
    Paul


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