Even so, if newly eligible Keystarters want to buy into central Perth, their options remain strictly limited. Only 40 per cent of Perth’s 300-odd residential suburbs have a median house price at or under $480,000, Real Estate Institute of WA sales data for the past 12 months shows. All but one of the suburbs have medians well over the cap, in the central metropolitan area defined by the WA Local Government Association (City Beach, Mount Claremont, Floreat, Jolimont, Subiaco, West Leederville, Wembley, Claremont, Swanbourne, Cottesloe, Mosman Park, Peppermint Grove, Perth, Crawley, Northbridge, West Perth, Daglish, Shenton Park, Jolimont, North Perth, Highgate, Mount Hawthorn, East Perth Mount Lawley, Coolbinia, Nedlands and Dalkeith). Crawley, where the University of WA is situated, is the only suburb with a median price under this ($221,500). And 95 per cent of sales in Crawley are classified as ‘units’, which potentially don’t suit families (the average number of people per household in Crawley is two, lower than the wider metro average of three). The suburbs affordable within the cap are overwhelmingly on the urban fringe –far north, far south and far south-east.

There are a few pockets of suburbs both relatively affordable and well connected to services and transport, mostly in the inner east, such as Belmont ($425,000), Bentley ($440,000), Carlisle ($475,000), East Cannington ($460,000), Queens Park ($400,000) Redcliffe ($397,500), Mirrabooka ($325,500), Morley ($450,000), Nollamara ($380,000). Bassendean also sneaks in with a median of $480,000. The Urban Development Institute of WA had recommended the government make a 25 per cent increase to Keystart thresholds in its 2019 State Budget Submission. These increases fall significantly short, equating to 17 per cent for singles, 13 per cent for couples and 15 per cent for families. In May when the budget announcements were made, UDIA WA stated the caps “limited choice considerably” and voiced further concern that the temporary nature of the increases, to be terminated at the end of the year, could limit the initiative’s usefulness especially given the time taken for people to find a suitable property and then navigate through finance approvals.

On Monday, UDIA WA chief executive Tanya Steinbeck said further increasing the price cap would allow Keystart clients greater housing choice, in a wider variety of locations. “It is encouraging that the state government has recognised the increased difficulties that buyers, particularly first home buyers, are facing in getting their foot in the housing market door,” Ms Steinbeck said. “It is positive to see the 75 per cent surge in enquiries to Keystart, with the loan applications coming from the desired cohort of buyers. “This is one policy lever that the state has to offer more West Australians the opportunity to own their own home, and has the flow on effect of generating more construction activity and is a boost to the economy.” UDIA has also previously advocated for a stamp duty concession for seniors downsizing, which it says is a significant barrier to moving in this age group, and would encourage development of more diverse housing choices in new communities such as Metronet precincts.

The government said in its statement that there had since May already been a 75 per cent jump in online and direct enquiries to Keystart. There had been 80 applications lodged by those who had previously exceeded the old income limits and were thus ineligible for loans. Around half of these 80 applicants were first homebuyers and could also be eligible for the first home owner grant, having indicated that they wanted to buy or build a brand-new home. Office of State Revenue data showed that new dwelling applications for FHOG increased 17 per cent in May. Treasurer Ben Wyatt said in a statement on Monday that while bank lending restrictions were a national issue, it was important the state government did what it could.