What the Fourth Quarter meant for Queensland
Q4 2017 PRD Key Market Indicators - Queensland
Believe it or not... property demand will increase the most in Queensland (QLD), as nett migration figures have increase by an exponential 54.7%, from 10,174 in March 2016 to 15,736 in March 2017. This was the highest percentage increase across all Australian states, which when combined with cooling measures in dwelling approvals (by 5.3% over the past 12 months (to September 2017)) indicates more opportunities for developers to build new stock.
The PRDnationwide Q4 2017 Key Economic Indicators provide consumers with a quick snapshot of the current state of affairs from an economic and property prospective. The PRDnationwide Key Economic Indicators cover both national and state level data, comprising of:
- Number of first home buyer loans
- Home loan affordability index
- Number of dwelling approvals
- Consumer price inflation index
- Unemployment rate
- Weekly family income
- Nett migration
QLD maintains its affordability reputation, with the number of first home buyer loans increasing by 19.7% over the past 12 months (to June 2017). Although this was not as high as the Australian Capital Territory (at 21.8% growth), it was the highest when compared to New South Wales (NSW) and Victoria (VIC).
QLD's affordability (36.7 index points) is above the Australian average of 31.8 index points, explaining why many southern investors (i.e NSW and VIC) are increasingly choosing to purchase in QLD. Those worried about first home buyers being priced out need not, as previous figures (12 months to March 2017) show an 8.5% growth - this is lower than this quarter's figures.
Nett migration in QLD has increased exponentially over the past 12 months (to March 2017), currently at 15,736 people. This suggests an increase in property demand, however, interestingly there has been a 5.3% decrease in dwelling approvals over the past 12 months (to September 2017). This suggests there is opportunity for current stock in the short term but potentially an under supply issue in the long term. This is welcomed news by astute investors and developers alike - the time to plan is now!
Unemployment rate has increased slightly to 6.0% over the past 12 months, representing a 1.7% increase. However, the average weekly family income has also increased to $1,651 - representing a 2.4% growth over the past 12 months (to June 2017) - which indicates further future economic growth.
The above indicators confirm QLD as a desirable state for affordable residential real estate. With a promising future economic growth, this is good news for both owner occupiers and investors.