IS HOUSING BECOMING UNAFFORDABLE?
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.