Busselton shire 'unaffordable'

New figures list the Busselton shire among the most unaffordable places to live in regional WA prompting forecasts of fewer first homebuyers in the region.

A housing affordability study released by Bankwest in March, lists the Busselton shire in the top 10 least affordable regional areas with a median house price of $513,500 last year.

A house in the shire cost, on average, 6.4 times the average wage last year, based on the salaries of nurses, teachers, police officers, fire fighters and ambulance officers.

Senior analyst Tim Crawford said the lack of affordability in the shire could result in fewer first homebuyers.

Those saving for a deposit would save on average for 5.5 years, a year longer than the WA average, based on saving 20 per cent of their wage.

Vasse MLA and Housing Minister Troy Buswell said his office dealt with several people who experienced housing stress in the area and the market needed fewer dramatic increases to prevent young and lower income earners dropping out of the market.

He said prices steadied since 2006 when the market was subjected to several increases.

“There’s no doubt that if we had a significant increase in the price of housing again we could have issues,” Mr Buswell told the Times.

Busselton Shire Council planning and development services director Nigel Bancroft also said there was potential for long term “affordability issues” in the most upmarket areas of the shire.

However, despite the statistics, growth had been steady in the region.

“Building licence issues have been steady since the global financial crisis, we’re still getting buyers through,” he said.

The council’s planning department has been promoting a bigger range of development types, including multi-unit developments to provide cheaper housing options for first-time buyers.

New, affordable blocks of land have also been encouraged.

“The reality in Busselton itself (is) Via Vasse still has blocks available for $99,000,” Mr Bancroft said.

“In that context there certainly are affordable options.”

Mr Crawford said research conducted this year indicated house prices would remain stable.

“One of the positive sides for Busselton (shire), because prices have settled in the past year there has not been an increase,” he said.