PRD → Research Hub → Q4 2019 Key Market Indicators – Western Australia

Q4 2019 Key Market Indicators – Western Australia

Western Australia (WA) recorded a home loan affordability index reading of 44.6 points in the June quarter of 2019, earning the state a bronze award nationally for the Highest Home Loan Affordability Index Reading category. This is much higher than the Australian home loan affordability index reading of 32.2 points, and cements WA as one of the most affordable states in the country.

November 11 2019

Q4 2019 Key Market Indicators – Western Australia

Affordable housing in Western Australia opens opportunities for first home buyers

Western Australia (WA) recorded a home loan affordability index reading of 44.6 points in the June quarter of 2019, earning the state a bronze award nationally for the Highest Home Loan Affordability Index Reading category (in the PRD Q4 2019 Key Market Indicator Awards). This is much higher than the Australian home loan affordability index reading of 32.2 points, and cements WA as one of the most affordable states in the country; slightly behind the Northern Territory and the Australian Capital Territory. Those looking for highly affordable options should consider WA, particularly as its home loan affordability index improved by 6.7% in the 12 months to the June quarter of 2019, which was much higher than the Australian average growth of 3.5%. Due to this, WA earned a gold award nationally for the Most Improved Home Loan Affordability Index Growth category. PRD Q4 2019 Key Market Indicators - WA.PNG

Interestingly, despite a more affordable property market, the number of first home buyer loans approved declined by -7.5% in the 12 months to the June quarter of 2019. That said, this is on par with the Australian average decline of -7.6% during the same period, which suggests that there were other factors (other than property prices) in play, such as tighter lending policies.

The WA unemployment rate was 5.7% in September 2019, representing a -6.6% decline in the past 12 months. This is the largest improvement in the unemployment rate of all states, earning WA a gold award nationally in the Most Improved Unemployment Rate category. Median weekly family income in WA was $2,069 in the June quarter of 2019, representing a 2.0% increase in the past 12 months. This is a lower increase than the Australian average of 2.6%, however, it is counterbalanced with the large increase in the number of people employed.

Nett migration to WA was recorded at 5,193 in the March quarter of 2019, which was a significant increase compared to the 2,466 increase recorded in the March quarter of 2019. This will allow for current stock to be absorbed by the market.

The PRD Q4 2019 Key Market Indicators report provides 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: