Q2 2019 Key Market Indicators – Queensland
Queensland Holds Steady For The Rest Of 2019
Queensland (QLD) proves itself to have strong and
steady property growth indicators and economic fundamentals, which allows for
key property purchasing decisions to be made with confidence in the state. This
is particularly crucial in this economic and political climate, where there are
many uncertainties within society due to many factors, such as: Federal and
State Elections, the potential implementation of the Royal Banking Commission
recommendations, and the fluctuating Australian Dollar.
QLD continues to attract residents, earning the state a bronze award nationally in the ‘PRD Q2 2019 Key Market Indicator Awards’, for the highest nett migration category. Nett migration into QLD was recorded at 15,206 people in September 2018, representing a 22.2% growth over the past 12 months. With an increasing population comes property demand, however, dwelling approvals in QLD have declined by -35.3% over the past 12 months (to February 2019). In one aspect, this allows for current stock to be absorbed, particularly those in Brisbane, however it also creates an opportunity for developers wanting to create niche product offerings.
QLD has historically been known as the more affordable state compared to New South Wales and Victoria, and this trend continued into the December quarter of 2018, with QLD recording 35.6 points in the home loan affordability index. This was above New South Wales (27.2 index points), Victoria (30.2 index points), and the Australian average (32.0 index points). That said, the number of first home buyers in QLD have declined between the December quarters of 2017-2018, by -14.4%. This is quite significant for the state, however, this decline may also be exacerbated by tighter mortgage home lending policies.
QLD families have seen an increase in the weekly family median income, by 2.6% over the past 12 months (to the December quarter of 2018), to $1,721. This has earned QLD a bronze award nationally for the highest growth in median weekly family income, which suggests that those in the workforce should have a higher disposable income. This has a positive multiplier effect into the economy, as those working have the potential to spend more on goods and services. This creates a steady platform for future economic growth in QLD.
The ‘PRD Q2 2019 Key Market Indicators’ provide a quick snapshot of the current state of the market in Australia from both an economic and property perspective. The Indicators cover both national and state level data, comprising of:
- Number of loans to first home buyers
- 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
View the Q2 2019 Key Market Indicators