Q1 2018 Key Market Indicators – Tasmania
And the highest number of dwelling approval growth gold award goes to….Tasmania!
Tasmania is leading the way in development approvals, with a 48.6% increase reported over the past 12 months to December 2017. This is equivalent to 266 dwelling approvals to the state in December 2017, which although pales in comparison to other states – for example Victoria (5,284 approvals), New South Wales (6,603 approvals), and Queensland (3,364 approvals) – this is quite a momentous achievement for Tasmania. The increase in dwelling approvals cater for the 176.9% growth in nett migration into Tasmania with 407 people as of June 2017. However, there is still an imbalance between supply and demand, suggesting that now is the perfect time for developers to set their sights to Tasmania.
Tasmania takes out the bronze award for most improved unemployment rate (as of January 2018), recording a -7.0% increase over the past 12 months. This is a significant improvement considering that over the past 12 months unemployment rate in New South Wales remains unchanged, and it only decreased by -3.4% in Victoria and -1.6% in Queensland. With an unemployment rate of 5.3% Tasmania is faring well, as it is below the Australian average of 5.5%.
Once known as one of the most affordable places for property, Tasmania is slowly letting go of this crown, moving to 4th place (at 43.0 index points) behind the Australian Capital Territory (54.2 index points), Northern Territory (51.6 index points), and Western Australia (44.6 index points). Interestingly however, Tasmania’s affordability is still above of the Australian average of 33.0 index points, and much higher than New South Wales, Victoria and Queensland; making it a prime choice for interstate investors looking for alternative options. However, Tasmania needs to review its first home buyer policies, as it was the only state to record negative growth (of -3.3%) over the past 12 months to September quarter 2017.
The PRDnationwide Q1 2018 Key Market Indicators provide a quick snapshot of the current state of affairs from an economic and property market perspective. The Key Market Indicators cover both national and state level data, comprising of:
- Number of first home buyer loans
- 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
For more information on the PRDnationwide Key Market Indicators please contact Dr Diaswati Mardiasmo, National Research Manager