Q1 2018 Key Market Indicators – Australian Capital Territory
And the most improved home affordability loan index growth gold award goes to….the Australian Capital Territory!
The Australian Capital Territory (ACT) wins the gold award for most improved home affordability loan index growth in September quarter 2017, increasing by 8.6% over the past 12 months. ACT also wins the gold award for the highest home loan affordability index reading, with a reading of 54.2 index points in September quarter 2017. This is well above the Australia average (33 index points) and states such as New South Wales (27.7 points), Victoria (31.1 points), and Queensland (37.3 points). Winning these Q1 2018 Key Market Indicator awards suggests that now is the time for first time home buyers and investors to look into the ACT for their next purchase.
Originally a place known for government workers, the ACT has rebranded itself with many more commercial and mixed-use developments coming on board over the past 12 months, resulting in an influx of professionals. ACT also holds the highest median weekly family income gold award at $2,652 per week in September quarter 2017, which potentially explains why many are attracted to move to ACT.
ACT holds the silver award for most improved number of first home buyer loans, at 64.4% growth over the past 12 months to September quarter 2017. Not a surprisingly result considering the two key indicators (home loan affordability and median weekly income) above.
Investors wondering whether or not there would be rental demand in the ACT need not worry, as nett migration growth is at 464.3% over the past 12 months (June 2016 - June 2017), growing from 56 people to 316 people. What’s more, there has been a decrease of 61.5% in the number of dwelling approvals in the ACT over the past 12 months to December 2017, suggesting that there might be a shortage of housing in the near future - opening the doors for developers to plan their next project.
The PRD Q1 2018 Key Market Indicators provide a quick snapshot of the current state of affairs from an economic and property market perspective. The Key Market 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 sentiment index
- Standard variable loan
- Consumer price inflation index
- Unemployment rate
- Weekly family income
- Nett migration
For more information on the PRD Key Market Indicators please contact Dr Diaswati Mardiasmo, National Research Manager.