Q3 2017 Key Market Indicators – Tasmania
The results are in: Tasmania leads the way in dwelling approvals, increasing by 19.9% over the past 12 months to 205 approvals in June 2017. This is good news for the market, as it services both interstate investor interest and local fist home buyers.
The PRD Q3 2017 Key Economic Indicators provide consumers with a quick snapshot of the current state of affairs from an economic and property perspective. The PRD Key Economic 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
A key finding for Tasmania is in relation to affordability, which has increased by 2.9% to 42.3 index points in March 2017. This increase is quite low compared to NSW (3.7%), VIC (6.6%), and QLD (3.6%); which is surprising as property prices in Tasmania is considerably lower than other capital cities such as Sydney Melbourne and Brisbane. Interstate investors have increased over the past 12 months in Tasmania, partially contributing to affordability for local residents and the decrease of 11.1% in first home buyer loans.
That said Tasmania’s affordability remains above the Australian average of 32.9 index points. Furthermore dwelling approvals has increased to 205 in June 2017, which should increase the number of properties available and address the increasing demand from both interstate investors and local residents
Nett migration in Tasmania has increased to 527 in December 2016 and unemployment rate has also increased to 6.3%. This suggests the need for a more proactive measures to attract commercial activity into Tasmania, to cater for the increasing size of its labour force. That said those who are currently employed is enjoying an increase in the household income, with the weekly family income increasing to $1,389. This suggests wage growth and strong potential for future economic growth.