Q2 2019 Key Market Indicators – Tasmania
More Opportunities For First Home Buyers In Tasmania
Tasmania (TAS) leads the nation in highest growth in number of dwelling approvals, achieving a gold award nationally in the ‘PRD Q2 2019 Key Market Indicator Awards’. Dwelling approvals in TAS increased by 19.1% between February 2018-2019, recording 280 approvals. A growth in dwelling approvals in TAS contrasts with all other states across Australia, with all recording a decline and the Australian average itself declining by -21.7%.
An increase in dwelling approval is a key strategy for TAS, and in particular for local first home buyers, as there has been an increase in local and interstate investor activity over the past 18 months. There has already been an increase in first home buyer loan approvals by 23.3% over the past 12 months (to December 2018), earning TAS a silver award nationally for the most improved number of first home buyer loans. However, the home loan affordability index in TAS declined by -2.3% between the December quarters of 2017-2018. Thus, an increase in property supply will create a more level playing field, as it allows first home buyers to access the more of the first home owner grant.
Nett migration into TAS has declined by -3.0% over the past 12 months (to September 2018), which will further assist in lowering competition within the property market for first home buyers.
TAS achieved a gold award nationally for highest growth in median weekly family income, increasing by 2.9% over the past 12 months (to the December quarter of 2018), to $1,458. Although in dollar terms this is still lower than the Australian average of $1,765 per week, wage growth in TAS has been faster than the Australian average (2.6% over the same period). Furthermore, wage growth in TAS is now on par with Victoria, a trend which has continued since the PRD 2017 Key Market Indicators. This has had 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 TAS.
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