Q3 2017 Key Market Indicators – Western Australia
The results are in: Western Australia recorded the 2nd highest growth in home loan affordability over the past 12 months, at 4.9% to 42.8index points. Western Australia’s affordability level is far above the average Australian index reading of 32.9, making it an ideal place for first time interstate investors.
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 Western Australia is in relation to affordability, which has increased by 4.9% over the past 12 months to March 2017. The growth in Western Australia’s affordability is above the Australian average (4.4%), suggesting that now is the time to seriously consider the Perth market. Interstate investors are currently doing so, potentially explaining why the number of first home buyer loans have decreased to 3562 in March 2017. That said this is only a 1.8% decrease, considerably below New South Wales (-5.2%), Tasmania (-11.1%), and ACT (-8.9%).
Dwelling approvals has seen cooling measures over the past 12 months, decreasing by 8.3% to 1606 number of approvals. Nett migration has also decreased, quite significantly to -1824 in December 2016, potentially due to the downturn in the mining industry. This suggests a potentially balanced market in demand and supply, and provides current stock the opportunity to be absorbed by the market.
Unemployment rate has decreased to 5.4% in July 2017, which is below the Australian unemployment rate of 5.6%. Combined with an increasing trend in weekly family income, by 0.6% over the past 12 months to $1987 in March 2017, Western Australia proves it’s strong potential for future economic growth.