This decision by the Western Australian government not to reinstate some home buyer subsidies in the recent state budget is a lost opportunity, says Craig Abbott, General Manager WA, Raine & Horne.

“Many first home buyers have a preference for Perth’s inner and middle ring suburbs so they can be closer to their jobs,” said Abbott.

“As a consequence of the changes to the FHOG last year we’ve seen a drop of almost 9% in the numbers of first home buyers securing established homes," he said.

“Given the buying preferences of many first timers, it was important that last year’s decision to cut the $3,000 First Home Owners Grant for the purchase of established homes was reversed in the 2016/17 budget."

However, first-home owners determined to buy an existing property have found East Perth, Northbridge, and Cannington potentially suitable areas to buy.

Tim Chant, Principal of Raine & Horne Cannington, said last week’s state budget offered a chance to attract more first home buyers to the southern suburbs.

“Cannington and surrounding suburbs such as Parkwood are attracting plenty of first home buyers thanks to our region’s affordable real estate, and proximity to the CBD and the airport,” said Chant.

According to Raine & Horne the median house price in Cannington is $490,000.

Closer to the CBD, East Perth and Northbridge continue to attract younger buyers due to their combination of inner city entertainment options and relative affordability.

“East Perth offers some of the city’s best cafes, shops, restaurants and transport infrastructure, which is attractive to buyers and tenants alike,” said Larry Gallagher, Principal of Raine & Horne North Perth.

Two bedroom apartments in Northbridge start from $500,000, according to Gallagher, while the median apartment price in North Perth is $550,000.

Gallagher said the Perth market is offering good value compared with Sydney and Melbourne, a fact also being recognised by Asian investors.

“We expect to see more first home buyers from the eastern states who have been priced out of the Sydney and Melbourne markets,” he said.

“With the growth in the online service industry, there’s no reason why online workers can’t shift their jobs and businesses west in search of a more affordable lifestyle, while Perth’s proximity to Asia, and our shared time zone, will also appeal to some younger internet entrepreneurs seeking international expansion,” he said.

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