Q1 2018 Key Market Indicators – Western Australia
And the most improved home affordability loan index growth silver award goes to….Western Australia!
Western Australia has proven to be a desirable place for affordability options, with a 6.4% improvement in their home affordability loan index over the past 12 months to September quarter 2017, making it the 2nd most improved state across Australia after the Australian Capital Territory (8.6%). Furthermore, Western Australia has the 3rd highest home loan affordability index reading of 44.6 points, significantly higher than the Australian average of 33.0 index points.
Although there has been some negative impact in Western Australia’s employment particularly due to the slowing down in the mining boom, other industries such as the retail trade, healthcare and social assistance, and the education and training industry are starting to improve. As a result, Western Australia has achieved 2nd place in the category of most improved unemployment rate nationally (as of January 2018), declining by -10.9%. This is great news for the state, especially coupled with a 1.3% increase in median weekly family income over the past 12 months to September quarter 2017 – making Western Australia families the third highest weekly income earners at $2,007 per week.
Not surprisingly nett migration in Western Australia has declined over the past 12 months to June 2017, by a significant -47.1%. This suggests the need for the Western Australia government to further stimulate the economy and promote its potential to attract more residents. That said, the number of dwelling approvals has decreased by -5.2% over the past 12 months to December 2017. Although not quite in proportion, this does provide some relief to the potential level of oversupply in the market and there are increasingly affordable options available for those seeking to invest interstate.
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.