Q2 2019 Key Market Indicators – Western Australia
Western Australia Holds Potential For Increasing Property Demand
Western Australia (WA) leads the nation in nett migration growth, increasing by 184.5% over the past 12 months (to September 2018). This is a significant number of population change for the state, as over the past 3 ‘PRD Key Market Indicators’, WA has experienced negative or minimal population growth. Interestingly, the number of dwelling approvals in WA has declined over the past 12 months (to February 2019), which allows for currently available and already in construction stock to be absorbed by the market. However, with such a large discrepancy between nett migration and dwelling approvals growth, it also creates an opportunity for developers to create niche product offerings.
Home loan affordability in WA has improved, by 3.1% over the past 12 months (to the December quarter of 2018), earning it a silver award nationally for most improved home loan affordability index growth in the ‘PRD Q2 2019 Key Market Indicators’. Interestingly, the number of first home buyer loans have declined by -4.1% during the timeframe, however much of this is attributed to tighter home mortgage lending policies introduced by banks in the 2nd half of 2018.
Home loan affordability in WA read at 43.2 index points in the December quarter of 2018, which was higher than the Australian average of 32.0 index points. This earned WA a bronze award nationally this quarter for highest home loan affordability index reading. This should stimulate first home buyer activity in early 2019 and provide an improved number of first home buyer loans in the next 6 months.
WA recorded a -13.0% decline in unemployment rate between March 2018-2019 to 6.0%, earning it a silver award nationally for most improved unemployment rate. Furthermore, WA achieved a bronze award nationally for highest median weekly family income, at $2,052 in the December quarter of 2018. This represents a 1.9% increase over the past 12 months (to the December quarter of 2018), and in dollar terms is higher than the Australian average of $1,765 per week. The combination of these two key indicators will have a positive multiplier effect in the WA economy, as those working have the potential to spend more on goods and services. This creates a strong platform for future economic growth in WA.
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