Q3 2019 Key Market Indicators – Queensland

Queensland no longer the most affordable state in Australia

Queensland (QLD) has historically been known as the more affordable state for property prices, when compared with New South Wales (NSW) and Victoria (VIC). This continued to be the case in the March quarter of 2019, with the state’s home loan affordability index reading at 36.4 index points (ahead of NSW’s 28.3 index points and VIC’s 30.8 index points). Interestingly, QLD did not lead in home loan affordability growth this quarter, rather, it remained stable over the past 12 months. While this provides a stable platform for Queenslanders to make property related decisions, it does indicate that affordability may no longer be synonymous with QLD, particularly as home loan affordability index readings increased in NSW and VIC (by 3.3% and 5.1% respectively).

PRD Q3 2019 Key Market Indicators - QLD

The above pattern can also be seen in the number of first home buyer loans, with QLD recording 4,677 loans in the March quarter of 2019. This number of first home buyer loans approved earned QLD a bronze award nationally in the highest number of first home buyer loans category in the PRDnationwide Q3 2019 Key Market Indicator Awards. However, it does represent a decline of -17.1%, which is higher than the Australian average decline of -11.6% and higher than both NSW and VIC (at -11.0% and -11.9% respectively).

The number of people choosing to call QLD home continues to increase, with nett migration of 11,927 people in the December quarter of 2018. This represents a 24.9% increase in the past 12 months, earning QLD a silver award nationally in the highest nett migration category. This is an improvement compared with the PRDnationwide Q2 2019 Key Market Indicator Awards where QLD earned a bronze award in this same category.

With an increasing population comes increased property demand, however dwelling approvals in QLD declined by -21.7% in the 12 months to June 2019. This is a further decline compared with the -35.3% drop in the 12 months to February 2019. This allows for current and planned stock to be absorbed. However, it also creates an opportunity for developers wanting to create niche product offerings.

The PRDnationwide Q3 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