Q2 2018 Key Market Indicators – Australian Capital Territory
The Australian Capital Territory achieved 3 gold medals in the PRDnationwide Q2 2018 Key Market Indicator Awards.
The ACT has advanced to become one of the most affordable states in Australia, earning the gold award nationally for highest home loan affordability index and the silver award for most improved home affordability loan index growth. In the December quarter of 2017 the ACT’s home loan affordability index reading was 51.0, which is significantly higher than the national Australian average of 31.0 index points and represents a 4.5% increase over the past 12 months.
Undeniably this result is directly correlated to the ACT taking out the gold award nationally for highest median weekly family income, at $2,664 per week in the December quarter of 2017. When considering that its property prices are still slightly lower then Sydney and on par with Melbourne, this suggests the ACT has increased buying power in comparison to other states.
A flow-on-effect to this is the increased demand for property in the ACT, which will be satisfied by the increase in dwelling approvals. The ACT achieved the gold award nationally for highest number of dwelling approval growth in Q2 2018, at 58.2% as of December 2017. The addition of stock will assist in keeping the affordability balance within the market, as the ACT should not be exposed to a supply shortage which traditionally would result in sharp price increases.
The PRDnationwide Q2 2018 Key Market Indicators provide a quick snapshot of the current state of affairs 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