Q3 2019 Key Market Indicators – Western Australia
Western Australia holds countless opportunities to be discovered
Australia (WA) can be an overlooked state for property opportunities, mainly
due to its geographical distance to the three main states of Queensland (QLD),
New South Wales (NSW), and Victoria (VIC). However, it holds countless
opportunities for those looking for affordable investment options, as it earned
a silver award nationally in the most
improved home loan affordability index growth category, and a bronze award
nationally in the highest home loan
affordability index reading category, in the PRDnationwide Q3 2019 Key Market Indicator Awards.
Home loan affordability index for WA grew by 4.5% over the past 12 months (to the March quarter of 2019), which was above NSW (3.3%), QLD (0.0%), and the Australian average of 3.4%. Its home loan affordability index reading was 44.2 index points in the March quarter of 2019, significantly higher than NSW (28.3), VIC (30.8), and QLD (36.0). This makes WA an attractive place for interstate investors looking for alternative options.
The number of first home buyer loans declined by -7.4% over the past 12 months (to the March quarter of 2019). However, a -118.7% decline in nett migration over the 12 months to the December quarter of 2018, and the -12.8% decline in the number of dwelling approvals over the past 12 months (to June 2019) should provide first home buyers with more opportunities. The combination of these two indicators suggest there should be less competition in the market.
Strong economic fundamentals exist in WA, with its unemployment rate declining by -6.5% over the past 12 months (to June 2019). This is significantly higher than the Australian average of -1.9%, indicating there is a healthier change in the labour market in WA. Furthermore, WA’s median weekly family income grew by 1.9% over the 12 months to the March quarter of 2019, meaning those working now have a higher disposable income for goods and services. WA earned a bronze award nationally in the highest weekly median family income category, at $2,060 in the March quarter of 2019. This is much higher than the Australian average of $1,774, which creates a strong platform for future economic growth in WA.
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
View the Q2 2019 Key Market Indicators